THE INTERNATIONAL Olympic Committee (IOC) has agreed to bail out the organisers of next year’s winter games in Vancouver if they incur a deficit caused by the recession’s impact on sponsorship.

The deal, unprecedented in Olympic history, follows a meeting in Vancouver this week at which the Vancouver Organising Committee (Vanoc) told the IOC it expected a shortfall of at least C$42 million (€27 million) in its C$1.8 billion operating budget.

Vanoc said it had met its target for domestic sponsorships, but only nine out of 11 budgeted global sponsors had signed up. The two unfilled categories – insurance and health – were expected to bring in about C$30 million. Vanoc has also been unable to sell over C$12 million in billboard advertising and corporate packages.

Dave Cobb, Vanoc’s head of marketing, said: “They have given us their assurance that when we get to the end, if we do have a shortfall, they’re prepared to financially help us.” – Copyright The Financial Times Limited 2009