Gay Games VI Under the Gun

Despite organizational woes, new leaders promise event will be best ever

By Outsports.com

(Updated July 18, 2001 with Federation Press release at bottom)

"It will be the best gay and lesbian queer event in the history of the world.''

With these remarks, Geoffrey Williams, CEO of Sydney 2002, is trying to lay to rest concerns that the sixth edition of the Gay Games is in trouble.

What has sparked the concern is a three-page e-mail from the executive committee of the Federation of Gay Games two weeks ago that raised the possibility of the 2002 Games being moved or forfeited. The executive committee of the Federation will visit Sydney from July 21-28 for a status report that will be critical.

``The serious nature of the present circumstances with regard to Sydney 2002 Ltd. and the Gay Games cannot be over estimated,'' said the e-mail, sent June 27 and marked ``Very important, please read now,'' a copy of which was obtained by Outsports.

``A visit to Sydney is to be undertaken in late July 2001, which has been postponed since May 2001 to enable the new Sydney 2002 Ltd Board and new CEO to settle in,'' said the e-mail. ``This visit will be a watershed in ascertaining whether or not Sydney 2002 Ltd are in a position to comply with the FGG License Agreement and their Bid commitments, or whether remedial action will need to be undertaken e.g. such as #1 a scaling down of all the Gay Games activities, #2 total forfeiture of the GAY Games, #3 moving the Gay Games to another city for 2002.''

Federation male co-president Bill Wassmer is now disavowing the contents of the e-mail, saying that it's outdated and reflects problems with the old Sydney 2002 board of directors. The e-mail was sent out above the names of the six members of the executive committee--including Wassmer--though Outsports can't determine who specifically wrote it. 

"Since the e-mail, I've spoken with the Sydney people and things have changed," said Federation male co-president Bill Wassmer. "Everything that has happened is not the new board's fault. They're just picking up the ball."

The Federation, a San Francisco-based organization, awards the quadrennial Games to a successful bidding organization and ensures that the event is held in accordance with its standards. It also received a licensing fee from the host city. This license fee has not been paid since last October, the e-mail said, and has led to negotiations over a payment schedule. Williams said the issue revolved around ``the timing and not the quantity'' of the fee, believed to be in the six figures.

`It's Going to Be Fabulous'

Williams, who came on board as Sydney 2002 CEO on June 1, categorically dismisses talk that the Games will be moved or not be held.

``They absolutely, no doubt will be held here [in Sydney],'' he said in an interview with Outsports. ``It's going to be fabulous.''

There is no dispute that the Sydney organizing effort has been marked by disarray since the city was awarded the bid in 1997. Williams is the second CEO of Sydney 2002 and took office a scant 17 months prior to the Nov. 2, 2002, opening ceremonies. 

Two new co-chairs have been named, as well as four new board members since March. Four board members were retained and there are two vacancies, Williams said. The Sydney Star Observer, a local gay newspaper, reported that many volunteers ``were distressed and angry about the undemocratic process'' by which the new appointments to the board were made.

In addition, an ambitious expansion of the Games cultural component was dropped after it was determined that it would have nearly doubled the budget. Robyn Archer, the head of the cultural festival, then resigned, the Sydney Morning Herald said, ``because she and others simply realized that Sydney 2002 would never have the budget to fulfill her vision.''

Said Wassmer, "We can't keep feeding the cultural events. If people are not going to buy the tickets for the cultural events, we can't keep paying for them." The sports events, he said, more than pay for themselves with registrations and tickets.

Can the Money Be Raised?

The Federation's worries boil down to money, or more specifically, doubts that Sydney 2002 will be able to meet its $10 million Australian budget goal (about $5 million US). In fact, the budget will be slightly larger than $10 million AUD, Williams said, though he would not be more specific pending the budget's approval by the new board.

A major Sydney Games sponsor, the Satellite Group, an Australian media conglomerate, closed last year. Earlier this year, the former board of Sydney 2002 renegotiated its contract with gay.com, the e-mail said, resulting in a reduced income to the Federation of $180,000. The contract was renegotiated, said Gene Dermody, Federation vice-president, "because Sydney could not deliver on some of the things in the contract like content--images and stories."

Williams, who said the e-mail was largely inaccurate while at the same time being ``really upsetting,'' was especially critical of two points:

•  ``We as the FGG directors are at a crossroads here as the budget to run the Sydney 2002 Gay Games has already been reduced to half of the amount that was presented to us in their 1997 winning bid in Denver.
  
  ``At present the budget is now around AUS$ 10 million which is about US$ 5 million. This means the 2002 Gay Games would be smaller than both New York in 1994 (US$ 8.4 million) and Amsterdam in 1998 (US$ 9 million).''

Williams disputes this contention on two points. First, he said the original bid document called for a budget of $9.8 AUD, a fact borne out by an analysis of the bids in 1997 by Canadian journalist Joe Clark. The ``reduced to half,'' reflects the scaling back of the previous board's ambitious cultural program plans, Williams said.

Also, he said a comparison of Sydney's budget to Amsterdam and New York is flawed, because using the exchange rate doesn't matter.

``We're not buying any of our goods and service in the U.S.,'' Williams said. ``$11 million Australian [dollars] is still $11 million Australian.''

• ``The license agreement limits registration fees to US $200 and with a projected 10,000 participants, this only generates a revenue of US $2 million or AUS $4 million, with another AUS $1 million estimated in ticket sales. This still leaves a shortfall of AUS $5 Million so the question is where are they going to get the rest of the income from?''

Williams said the budget calls for 14,000 to 14,500 registrants. However, even accounting for an additional 4,500 athletes, all paying a maximum $400 AUD registration fee, still adds just $1.8 million AUD to the budget. The difference will be made up by sponsorships, Williams said. 

`We Have Absolutely Nothing to Hide'

Williams, 54, whose last job was manager of cultural affairs and events for the city of Sydney, agreed that the e-mail was the product of cumulative frustration between the Federation and the former Sydney board. He did not receive it directly but was given a copy by a Federation board member from Australia.

``We were very, very concerned about it,'' he said. ``It indicated a lack of confidence.'' In the aftermath, a conference call was held between both parties to clear the air.

``We were very open to them,'' Williams said of discussions with the Federation. ``We've hidden absolutely nothing. … We have absolutely nothing to hide.''

The Federation's skepticism is rooted in the financial problems of the past three Gay Games organizing committees. Vancouver 1990 suffered a small post-games loss, while an even greater deficit was incurred by New York 1994.

The real trauma occurred in Amsterdam in 1998, when mismanagement by the Dutch organizing committee nearly forced cancellation of the Games just days before their August opening. Only a last-minute $2 million cash infusion by the local government prevented a debacle.

Unlike the International Olympic Committee, which can rely on a billion-dollar television rights stream and major continuing corporate sponsorships, each Gay Games group must essentially start from scratch. With the local and state governments in Australia promising no bailouts, Sydney 2002 will have a challenge in meeting its goals.

``A sluggish response from would-be sponsors has so far left Sydney 2002 Gay Games goodwill-rich but cash-poor,'' the Star Observer said in a story this week. 'Williams, however, has no doubts the budgetary targets will be met.

``I'm absolutely confident that we'll come through,'' he said. ``There will not be a deficit at the end.''

The bulk of income will come from registrations and ticket sales, with about 25% coming from cash and in-kind sponsors. With 500 days to go before opening, the Sydney Morning Herald reported, there is still no principal sponsor.

``This is the right sort of timing for sponsors to come on board,'' said Williams. ``They're coming on at exactly the right time.'' 

Quantas and American Airlines have ponied up airline tickets to allow Sydney board members to travel to events to promote the Games. In addition, he said state and local governments have offered in-kind assistance in the form of free office space, discounts on venues and a travel pass for participants. ``It's an incredible amount of budget-relieving help,'' he said.

In addition, early registrations are on schedule, said Stuart Borrie, Sydney 2002 Sports Director. He said there were more than 2,000 paid registrants and expects the number to top 4,000 by October, 14 months prior to opening.

`The New Board Knows How to Run Events'

The Federation's confidence in Sydney 2002 has been bolstered by the additions to the Sydney group. 

"The people in charge now, we have to cut them some slack," said Wassmer. "The people who bid for the meeting are very good at selling it, but not good at running the event. This new board knows how to run events."

One key addition to the Sydney group is new co-chair Bev Lange, a past three-year president of the city's hugely successful Mardi Gras celebration. This is seen as a sign that Mardi Gras veterans, who had been keeping their distance from the Gay Games, may be coming abroad to help prevent a civic embarrassment.

``I'd been hearing some differing stories,'' Lange told the Morning Herald in a June 13 story. ``I'd been hearing that people weren't confident about the Games being delivered. There's still a bit of nervousness around, but I think we can turn the thing around and deliver the Games they're expecting.''

Wassmer was quick to praise the new board for their understanding of what has worked and what has not worked in past Gay Games. "You don't pay $5,000 [for travel] to go play soccer, stay up all night, then lose the next day. No one is going to go to an all-night party in the middle of the event. [The new board] understands this." Amsterdam and New York did not, Wassmer said. Still, he reserved judgment on all key issues until after the executive committee's visit July 21-28.

Despite any bad feelings caused by the e-mail, Williams said he eagerly awaits the Federation's visit.

``I'm looking forward to it enormously. We have a lot of confidence. When they see the level of preparation of the budget and cash flow, they'll [also] have an enormous amount of confidence.''

Note: This article was reported and written by Cyd Zeigler Jr. and Jim Buzinski. A disclosure: Buzinski was a Federation delegate via his association with The Gay and Lesbian Sports Alliance of Greater Los Angeles. He had no role on the Executive Committee or the Sydney organizing effort.  Zeigler conducted all interviews with Federation officials for this story.

July 13, 2001

Links

Gay Games 2002
Federation of Gay Games

Update:

FEDERATION OF GAY GAMES OPTIMISTIC ABOUT SYDNEY VISIT

Here is a news release issued July 17 by the Federation in response the article above by Outsports and by subsequent press reports in Australia:

Federation of Gay Games officials have expressed optimism about recent actions taken by the new leaders of Sydney 2002, the organizing body of Gay Games VI.

"Sydney 2002 has just concluded a complete review of operations," said Bill Wassmer, co-president of the Federation. "We think they're now moving in the direction to get the job done."

Sydney 2002 has a new chief executive officer, Geoffrey Williams, and new co-chairs of its board of directors, Bev Lange and Peter Bailey. In addition, a number of new faces with extensive business experience in both Sydney's mainstream and gay & lesbian communities have joined the Sydney 2002 board.

"Turnover at the top is nothing unusual in big events like this as groups move from planning to implementation stages," said Sue Emerson, Federation co-president along with Wassmer. "It happens at almost every Olympics, in fact."

A Federation delegation was originally scheduled to make a site visit to Sydney in May, but that was rescheduled for the end of July to give the new Sydney 2002 leaders time to settle into their positions.

"We see the changes as positive and reflect that the Sydney community is, in fact, moving forward to ensure the most successful Gay Games ever," Emerson said. "Our whole delegation is looking forward to meeting the new team personally to plan how we can work in partnership over the next 15 months to increase corporate, government and private support."

Among the Federation's delegation are several Sydney residents who serve on the Federation's board of directors but who are not connected with Sydney 2002. Besides Emerson, who hails from the U.K., the Federation delegation includes Charlie Carson, Gene Dermody, Teresa Galetti and Kathleen Webster, all from the U.S., and Richard Cobden, Paul Croft, Richard Hogan and Jennifer Wilson of Australia.

The subject of press speculation was an internal e-mail Federation officers sent to the Federation board outlining possible courses of action after the upcoming site visit, including possible downsizing, removal to another city or forfeiture. Federation Vice President Gene Dermody says the e-mail needs to be kept in perspective.

"Just as the IOC has expressed concern about Athens, the Federation has had to be realistic about fundraising shortfalls in Sydney," said Dermody. "But we're not looking at worst-case scenarios now. The main thing is to put on an event that enables our athletes and cultural participants to have a first-rate experience in Sydney. We think the new Gay Games organizers 
are on their way."

Numerous meetings are being arranged with government and business officials during the Federation's visit, which ends with an open community meeting on July 28.