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LONDON — Organizers expect to surpass the $1 billion mark in revenues from domestic sponsors of the 2014 Winter Olympics in Sochi.
Dmitry Chernyshenko, head of Sochi's local organizing committee, said Monday that the Games have raised $850 million so far from seven top-tier sponsors. Three more companies are "in the pipeline" and are expected to sign on by the end of the year, he said.
That would take the sponsorship figure past $1 billion, far exceeding Sochi's original revenue projections and bucking the trend of the global economic downturn. Each "Tier One" deal is worth more than $100 million.
"This confirms our approach in dealing early with our partners," Chernyshenko told a small group of reporters on the sidelines of the Global Sports Industry Congress in London. "We think it is a model for everyone."
The three sponsorship categories still to be filled are insurance, gas and railways.
The seven sponsors signed so far are Volkswagen, , telecommunication firms and Megafon, oil and gas company , lender , and apparel company Bosco Sport.
The sponsorship revenues could put the local organizing committee on course to make a surplus on its $1.8 billion operating budget. Other revenue is raised through television rights, ticket sales and licensing deals.
Sochi, a Black Sea resort and the first Russian city to host the Winter Games, is building virtually all Olympic facilities from scratch. The project includes new roads in the rugged Caucasus mountains and a rail line connecting the snow sports venues with the ice sports arenas being built on the coast.
Out of $30 billion in total investment going into the region, the budget for Olympic venue construction and infrastructure stands at $6.6 billion, Chernyshenko said. The venues are scheduled to be completed by 2012 to allow for the holding of Olympic test events.
"Construction is well on track," Chernyshenko said. "Money is not an issue. We have the green light for the project. It is a national priority."
A new version of the Sochi logo and brand, as well as an international communications campaign, will be launched in a ceremony in Moscow's Red Square on Nov. 30, he said.
