A regular meeting of the Supervisory Board of the Sochi 2014 Organizing Committee, chaired by the Deputy Chairman of the State Duma and President of the Russian Olympic Committee (ROC), Alexander Zhukov, took place as a video conference in the Moscow and Sochi offices of the Sochi 2014 Organizing Committee. The Supervisory Board meeting reviewed a summary of the results of the Games and announced the preliminary financial results of the Organizing Committee.
According to recently updated figures, the operating profit of Sochi 2014 Organizing Committee may total approximately 9 billion rubles, including cash and transferable property. The Games profit will be re-invested in the development of sport in the Russian Federation.
The Supervisory Board members emphasized the role of the Organizing Committee in the success of the Olympic and Paralympic Games in Sochi. This was confirmed by the high assessment of the Games from the IOC, IPC, international sports federations, and data from sociological research[i] conducted in April 2014. According to this research, the decision to host the Sochi Games was fully justified and the Games greatly exceeded the expectations of 94% Russians . In assessing individual aspects of the 2014 Games, again 94% approved of the way the Games were organized while 75% of Russians believed that the main legacy of the Sochi Games will benefit Russia for many years to come.
The successful hosting of the Olympic and Paralympic Games in Sochi is also confirmed by the positive financial results of the Organizing Committee. According to preliminary estimates, the operating profit of the Sochi 2014 Organizing Committee totaled 261 million US dollars (9 billion rubles). Once the Sochi 2014 Organizing Committee has completed its mandate and been disolved, the financial results will be further updated.
During the meeting, members of the Supervisory Board received the current information on the status of property belonging to Sochi 2014 Organizing Committee. According to the decision taken following the meeting of the Russian Presidential Council for the Development of Physical Culture and Sport dated 24 March 2014, property owned by Sochi 2014 Organizing Committee is subject to non-refundable transfer to the development of physical culture and sports in Russia. The majority of property will distributed to the Olympic and Paralympic Committees of Russia, organizations reporting to the the Russian Ministry of Sports, the Ministry of Physical Culture and Sports of Krasnodar Region, as well as the Administration of Sochi.
The Supervisory Board discussed the dissolution process of the Sochi 2014 Organizing Committee. In accordance with the recommendations of the IOC, Sochi 2014 Organizing Committee began preparations for its dissolution a year before the Olympic Games. During this work, dissolution plans were developed and approved for each functional unit and operating activity of the Organizing Committee has been completed at all 20 venues. The planned term for closing contracts and completing all payments to the owners of the venues is July 2014. For the prompt closing of the functional units of the Organizing Committee, 526 people out of the 53,000 working at the start of the Games are still working. By 1 July, the number of employees will be reduced to 304, and further reduced to 198 people by 1 August. Starting from October 2014, the dissolution of the Organizing Committee will be carried out by 75 employees.
The President of the Sochi 2014 Organizing Committee, Dmitry Chernyshenko, emphasized:
"The Games in Sochi will continue to set records, even after their completion. Financial indicators show that these were the most successful Games compared to previous editions, and all earnings will be directed to the development of sport in Russia. In addition, we proposed a new formula for the distribution of income between the National Olympic and Paralympic Committees, sending a significant amount of funds to the development of the Paralympic Movement and creating more opportunities for sports for people with impairments. In addition to current contracts, 600 million rubles may be transferred for the development of Paralympic sport. This will be another contribution to the massive legacy that will remain after the Olympic and Paralympic Games in Sochi."
The next important event after the Supervisory Board for the Organizing Committee will be the official debrief on the results of the Games, which will be held in the South Korean city of Pyeongchang from June 25 to July 5, 2014. This event is an important element of the IOC program to transfer knowledge from the Organizing Committee of the last Games to the Organizing Committees yet to stage the Games.
The delegation of the Sochi 2014 Organizing Committee at the official debrief in South Korea will consist of 65 people. Other Russian participants at the forum will include representatives of the Ministry of Sports, Ministry of Energy, and partners of Sochi 2014 Organizing Committee: MegaFon, Rostelecom, Microsoft and Avaya. Other participants at this debrief event will include representatives of the IOC and the International Paralympic Committee (IPC), a delegation of the Organizing Committee of Pyeongchang 2018, the Mayor of Pyeongchang, the Governor of Gangwon Province, the South Korean Minister of Sports, the Organizing Committee delegation of Rio 2016 and Tokyo 2020, as well as representatives of the candidate cities to host the Winter Games in 2022.
Notes to the Editor
The Supervisory Board of the Sochi 2014 Organizing Committee makes strategic decisions on issues relating to the activity of the Organizing Committee as part of the preparation and staging of the Games. Its composition was approved on October 2, 2007.
[i] The study was conducted by the international company Nielsen, a world leader in marketing information. The April 2014 study interviewed 2,093 respondents aged 16-45 years from 22 Russian cities.