Deloitte is providing financial advisory services for the 2010 Winter Games
Due to economic volatility, the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) executive team was concerned with how changes in customer demand and the overall viability of key business partners might impact the ability of VANOC to achieve its revenue projections. VANOC sought assistance to develop a framework to evaluate financial risk of Vancouver 2010 sponsors and conduct analysis on key Vancouver 2010 revenue streams, identifying risk profiles and possible outcomes and probabilities. The objective: to perform financial modeling to determine possible outcomes and probabilities, and identify the overall quantum of risk of 2010 Winter Games revenues.
VANOC engaged Deloitte to perform research, analysis and financial modeling to determine the potential revenue risks associated with each key Vancouver 2010 revenue stream. Deloitte performed risk analysis of major Vancouver 2010 sponsors, assessed the potential upside and downside risks of all revenue streams (such as ticketing, advertising and merchandise), and performed complex financial modeling to determine the range of possible revenue risks. Deloitte’s report, which was presented to the VANOC finance committee, will be updated periodically leading up to the Games.
Deloitte’s report to VANOC provided a clear and concise summary of potential revenue risks segmented into two streams: sponsorship credit assessments and revenue stream analyses. For each component of revenue, we provided a report on the range of anticipated revenue shortfalls based on our financial modeling and analysis. Our report assisted VANOC in better quantifying its revenue risks and provided valuable insight to enable contingency planning.