IOC Concerned About Government Financial Guarantees For Chicago 2016 Olympics

 Beijing London Chicago Association  (Chicago, IL): The International Olympic Committee (IOC), apparently, has concerns about financial guarantees that would be in place if Chicago 2016 wins, for Chicago, the privilege of hosting the 2016 Olympic Summer Games.

Now certain powerful Illinois politicians would seem to be responding to IOC concerns about financial guarantees for the hoped for Chicago 2016 Olympic Summer Games with a "do whatever it takes" attitude.

This is not the first time financial guarantees for a Chicago Olympic Summer Games in 2016 have been questioned. Nevertheless, this time around IOC decision makers say "...the wording provided [in the Chicago government financial guarantee] does not fully conform to the IOC required text."

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However, the lack of adequate financial guarantee wording for a Chicago 2016 Olympic Summer Games was not enough to keep IOC decision makers from naming Chicago to the Candidate Cities shortlist on June 4. And, notably, financial guarantee shortcomings have not, apparently, concerned the IOC previously with other U.S. cities, at least not to this extent and not at such an early stage, because, according to officials, the IOC has simply granted waivers, before now, of the financial guarantee requirement to U.S. cities competing for the privilege of hosting an Olympic Games.

Almost as soon as current IOC concerns about financial guarantees for any Chicago 2016 Olympic Summer Games were made known powerful Illinois politicians seemed to be announcing they will do whatever it takes, when it comes to the issue of a financial guarantee, to ensure the IOC awards Chicago the privilege of hosting the 2016 Olympic Summer Games.

The Chicago City Council consented, some time ago, to a $500 million financial guarantee for a Chicago 2016 Olympic Summer Games. That guarantee, which would, of course, source from taxpayer money, were it to be required to perform, is part of a total existing financial guarantee package which includes:

• $500 million if Chicago 2016's projected operating budget surplus is realized

• $150 million from Illinois if Chicago is awarded the 2016 Olympic Summer Games and Games deficits exceed $975 million

Nonetheless, faced with current IOC concerns about Chicago "financial guarantees" the aforementioned Illinois politicians did not, judging from their statements, seem to feel the need to restrain themselves from exposing the City of Chicago to further, even more taxing, financial guarantee obligations.

“Is that what it takes to get the International Olympic Committee to designate Chicago [the host city for the 2016 Olympic Summer Games]?” “If that's what it is, yes. This council will vote for that.” - Alderman Edward M. Burke (14th), Chairman of Chicago City Council Finance Committee

“We won't win unless...[the International Olympic Committee is satisfied with the]...comfort level, and we will be prepared to do that.” - Patrick G. Ryan, Chicago 2016 Chairman and CEO

“...To make the IOC feel...comfortable" enough to designate Chicago the host city for the 2016 Olympic Summer Games we would add to the existing $500 million Chicago City Council "financial guarantee” - Alderman  Isaac Carothers

For his part, Chicago Mayor Richard M. Daley previously seems to have blamed the U.S. administration when financial guarantee inadequacies have been at issue.

“The U.S. Olympic Committee requires an insurance policy. In other countries, the federal government steps up and says, ‘We’re the insurance policy.’ Here in the United States, they’ve never done that. And that’s been a real question by the International Olympic Committee. Why wouldn’t the United States stand behind the Olympic movement?” "...you want them. But, I can’t try to persuade them…You would never submit a U.S. city for consideration because you’d be waiting for a century to get it done.”

And when it comes to the question of whether or not the government backed financial guarantees that have been, either, proposed or put in place indicate that he has reneged when it comes to not using taxpayer funds to pay for a Chicago 2016 Olympic Summer Games Mayor Daley sometimes seems desperate to convince the city he leads that he has kept his word.

“This is in case… everything breaks down completely…This would be like an earthquake. If an earthquake takes place and I doubt if it’s gonna take place,” then we would use the $500 million in taxpayer backed money. This is only an insurance policy, it is only an insurance policy...”

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