Kevin, from what I remember, last Fall the Quebec government said it forgave a 1.5 million loan and that made its total money contribution around $3 million.
With numbers flying around and constantly changing, it's difficult to have a clear financial picture. I was hoping for causes leading to the budget shortfall from Outgames when they would come out of hiding but that's not happening. It's trying to present the situation as good as possible (or least worst possible). Now we have a budget in the book of 14.8 million and another total budget of 28 million. It doesn't say what is in this 28 (mostly media exposure I understand, free Air Canada flights. It includes value of services so I'm wondering in which of the two numbers the the $2 million+ in goods and services from Montreal is put).
I'll do a translation of this article:
La presse - most creditors acceptedMost creditors acccepted the proposition
69 of 75 crediitors present have accepted the trustee's (syndic) proposal. Even though the games still owe 1.3 million to its creditors, the director of the organizing committee Louise Roy qualify the event of great success.
We are sorry for the creditors but we don't print money she says.
Then examples of creditors: Signa Groupe Marketing (157 684 $), Communications Sponsor Aim (119 862 $), Corus (68 000 $), Mark Tewksbury (1055 $), Navratilova Inc. (17 500 $), Palais des congrès de Montréal (35 626 $), Société de transport de Montréal (157 684 $).
(personal note: the convention center and public transport authority are publicly owned not private companies)
In interview, Louise Roy insists taxpayers will not be penalized. The press secretary of Montreal's mayor says that if the city is not on the creditor's list is because it didn't want to hurt a possible agreement with smaller creditors than the city. And she says the $1 million loan given by the city was never reimbursed.
The treasurer of the Outgames has hopes to recover $200,000 from payables. Asked about the source of the biggest amount he answers Labatt (brewery) and DMC Transat (travel company).
VP public affairs at Labatt: incredible! in fact, it's Outgames that owe us money. $45,000 of beer not paid. Labatt chose not to register on the creditor's list and include a 45,000 loss in its books.
The spokesman for DMC Transat says it doesn't owe money, all financial agreement were honoured.
A commercial printer says all of this has been a big fiasco.And he says he will recover 5 to 10% of it's $65,000. He asks why it's us the businesses that have to pay fo this instead of the governments? When you finance an event it seems to me you have to assume eventual losses.
What lesson learned from all this was asked to Roy: it's important governments are more involved in the organisation of an event, that they sit on the board and that they take responsability of financial results.
Roy demands things be put in perspective. An event that far-reaching that ends with more or less $1 million in deficit on a budget of $28 million, "it's a success".
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Here I see the spinning of number 1 million out of 28 million as deficit, when in reality it's at least 4 million out of 14.8 million so something like 30% in deficit. And from someone who didn't want too much FGG oversight, now she suggests more governement oversight in the event organisation. Maybe all events should be nationalize?
There is also this from Canadian press on Le Journal de Montréal website:
la direction s'entend avec les créanciersagreement with 309 creditors still unpaid after 8 months. deficit of $921,000. without agreement Outgames would have to declre bankrupty.
$500 and less paid in full. between 500 and 2,500 a choice between take $500 or join the third group that will be paid between 15 and 20% of debt.
600,000 still owed to Outgames mainly refunds (note: rebate? beer or travel refunds?)
Outgames treasurer estimates to recuperate around 400,000$ of this sum. It's with this anticipated number that the final deficit is put at 921,000.
According to Outgames data, budget was $14.8 million. With services offered total cost was $28.3 million, paid 26% by the public sector.
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In the article above I note the 26% is on 28 million. There is more than 7 million coming from public sector, on the 14.8 million it's something around 50%.
At this moment the deficit is still 1.3 million (not counting the forgiven loans).
Another link, from tv (if you miss seeing Roy she appears in the video, to start it click camera below image)
l'organsiation évite la faillite - LCNGames were not a crowd success nor an accounting success. Organissation has around 1 million deficit. Leaves behind 308 dreditors including Cirque du Soleil, Olympic Stadium, Montreal public transit.
Ex-Outgames CEO Roy states games generated $96.4 million economic spin-offs and governements loses nothing in this experience.
I have no clue what this 96.4 million represents. The loses nothing argument is gov benefited for more than it put in I guess, but it had to put in more that resulted in much less than forecasted.
In the video Roy says Outgames created 110 jobs, gathered up $28 million (the so-called total budget number), governments put in 25% of that.
The trustee is afraid they'll have to go to court to collect money due to Outgames for instance from Labatt and Transat. There is someonething strange... Outgames created a financial mess and it will be the one suing others.
Again here the tactic of using 28 million as a total budget to make other numbers smaller, and the contribution of governments. Same strategy as with the number of participants. When they didn't make the 16,000 number to make it surpass it they added volunteers, officials, conference speakers to arrive at 18,000 people in the final press release. The economic benefite of $96.4 millions looks like an inflated number. Even Tourism Montreal had estimate of $75 million and underestimation of economic impact rarely happens, quite the contrary, it's probably a top estimate.
I'm still left with not many answers on what items of revenues or spending that were the causes of the financial problems.