Pan Am Games Case Study

If a group constructing a massive project for you set a budget of $1.4 billion, but later came back and said they were spending $2.5 billion, what would you do? Normally you would probably throw the whole team out the door, and perhaps sue them for the $1.1-billion overrun.
But in this case, the $1.1-billion overrun belongs to former Ontario premier David Peterson's Pan Am Games organizing committee, and even though two officers were fired, expenses continue to climb.
By the time they're finished, I'll bet it will cost $3 billion -- well over double the amount we were told in the beginning we would be paying.
But considering that the Games are a big hit with influential folks in Toronto, there's not nearly as much criticism of the atrocious
After the athletes leave, the buildings will become townhouses, condos and student housing for George Brown College. This sounds fine until we learn that the price tag just for construction of a bare-bones structure with no furnishings is at least $709 million.
Athletes' Village gets an extra $1.4 million
And, at the last minute, Pan Am Games organizers spent $1.4 million upgrading the rough cement floors in the Athletes Village "to preserve the event's international image."
There are 2,200 units in the complex. Hmm... over $700 million for housing. Just imagine how much housing the co-op folks could build if given this amount.
The biggest shocker is the construction of the Hamilton Pan Am Stadium, which is coming in at least $145 million for the 24,000-seat structure. Break it down and this comes to $6,041 per seat. Construction was finished two years late.
Travel expenses have certainly been abused. The Star says that critics claim up to $800,000 was spent on flying TO2015 and Pan American Sports Organization (PASO) officials to far-flung destinations where they were wined and dined.
The weird would-be porcupine mascot, Pachi, had cost $383,045 as of last November and I can imagine expenses growing by another $75,000 or more.
Lots of 'perks' on the
Sure, we love the glitter of the Opening Ceremonies, perhaps 125 Canadians will win shiny medals, and there will be both sports and social legacies -- but billions of dollars should not come out of the public purse for "circuses" when Ontario faces so many serious issues.
We should begin to worry that Toronto's elite is now talking about a possible bid for the Olympics. If the idea of a bid gets off the ground, we need some new rules. First of all, participating countries should share some of the costs. When fundraising begins, hotels, restaurants, and special event locations, etc. should be expected to contribute financially. After all, they're raking in billions while we pay a lot of the costs.
And finally, let's make members of the organizing committee personally legally responsible for sticking to the first budget they submit if the Olympics become a possibility. Surely they're familiar with this business