As reported in today’s Crain’s Chicago Business:
Mayor Richard M. Daley and Patrick Ryan assure Chicago taxpayers that a safety net of insurance would insulate them from the financial risks of hosting the 2016 Olympics.
But the insurance policies Mr. Ryan says he’ll secure would cover only about $1.1 billion of the $3.8-billion operating budget that the mayor’s Olympic point man has drawn up for the games. In many key areas, no insurer stands between taxpayers and the risk of revenue shortfalls or cost overruns.
For example, there’s no insurance against the risk that private lenders won’t shell out $1 billion to finance construction of the Olympic Village, as Messrs. Daley and Ryan predict they will. And there’s no coverage against shortfalls in corporate sponsorship sales, which they predict will rake in $1.8 billion, two-thirds more than London expects to collect for the 2012 games.
So, it’s official. Chicago’s premiere business publication has looked at the “insurance” and found huge holes. Guess who gets to fill those holes? JOIN US ON SEPTEMBER 29 AT CITY HALL, 5:30PM TO PROTEST THIS MESS!