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So how much will the 2002 Winter Games cost?

Olympic organizers say the total cash outlay is now $920 million, although they may end up with a budget that reaches $1.25 billion or more if they get the goods and services they want from corporate sponsors.And that's not even counting the value of security and other services expected to be provided by the federal government. That's expected to be well beyond the $30 million originally estimated.

It's no surprise projected spending is up from the $798 million budget put together in July 1994 for the Olympic bid. Finance officials acknowledged last February that inflation alone would push that total close to $1 billion by 2002.

What's different about the numbers outlined to Salt Lake Organizing Committee trustees on Wednesday are the estimates for non-cash contributions to the Games.

Those contributions, known as "value-in-kind" by budget types, are the goods and services given as part of the sponsorship deals made through the International and U.S. Olympic committees.

Those could be worth between $266 million and $336 million, trustees were told. Most of the stuff would come from the international and national Olympic sponsors, but some of it could come from local suppliers.

A list of the donations that Olympic organizers anticipate receiving includes everything from fast food to feed athletes to as much as $155 million worth of computer and telecommunications gear.

Everything on the list is needed to put on the 2002 Winter Games. So what happens if the Organizing Committee doesn't get what it wants? Do they need more cash?

No, SLOC President Tom Welch said. Organizers are not going to spend more cash than they expect to earn from selling the broadcast rights to the Games as well as corporate sponsorships, tickets and souvenirs.

That means if they don't get something on the value-in-kind list, they'll spend less cash somewhere else. And, Welch said, they'll need local communities to pitch in by providing government services like police protection.

Only federal tax dollars are supposed to be used to help subsidize the cost of putting on the Games. But Utah governments also "have to help to make this thing happen," Welch told trustees.

Trustee Nolan Karras, who represents Gov. Mike Leavitt on the board, said organizers also have to remind all Utahns that there's not a lot of money to spend on the Games.

"I think we can make it work, but it's going to be tight," Karras said of the cash and value-in-kind budgets presented Wednesday. That may require "some very ugly decisions."

For example, Karras said, many Utahns expect to be able to attend Olympic events. But if the number of spectators has to be limited to keep costs down, there may not be enough tickets for everyone.

Salt Lake City Councilwoman Deeda Seed told trustees she believes most Utahns are more concerned about what the Olympics will leave as a legacy to their communities.

"It's the big picture," Seed said. Utahns are excited because they believe longtime community needs in housing and transportation are more likely to be met because of the Olympics.

Welch and other Olympic organizers, though, want to make sure that it's not the Olympics that pick up the tab for those kinds of projects. Just putting on the Games is going to be tough enough.

Gordon Crabtree, SLOC vice president for finance, warned trustees that the committee will be in debt until after the Games are over and NBC makes its final payment on the $545 million broadcast rights agreement.

The organizing committee already has a $25 million line of credit through a consortium of area banks, an amount that could be increased soon. To date, organizers have contracted for less than half of the $920 million cash budget.



Budget: 2002 Winter Games

Bid Current

Cash $668 million $920 million


Contributions $130 million $266 - $336 million

Total $798 million $1.18 - $1.25 billion

*Called value-in-kind by Olympic organizers

Bid figures are in 1994 dollars. Current figures include a $200 million adjustment for inflation.

Source: Salt Lake Organizing Committee

Anticipated Value-In-Kind Contributions Include Up To:

-- $4 million in long distance telephone calls, photocopying and travel services for executives

-- $6 million in airline tickets and hotel rooms for Olympic guests, media and sponsors

-- $10 million in medical services

-- $10 million in food from McDonald's and other sponsors to feed athletes, volunteers, staff, sponors and Olympic guests

-- $11 million in cars, trucks and vans

-- $12 million in employee health insurance

-- $15 million in volunteer uniforms

-- $16 million in interest owed on money borrowed from area banks

-- $28 million in timing and sports equipment

-- $155 million in computer and telecommunication systems