Global Financial Crisis Hits Munich 2018 Olympic Bid

(ATR) The new chief executive of Munich's 2018 Olympic bid tells Around the Rings he is confident of raising the $39 million bid budget to keep the campaign on track amid the challenging economic climate.

Richard Adam, who took up the leadership role last week, dismissed concerns over the bid committee's recent problems in raising private finance for the campaign and claimed any budget shortfall would be covered by shareholders.

"The worldwide economic situation is not in favor of our fundraising activities. However, we will get there," he said.

"That's what we are here for, among other issues. It is good to work in Germany for this: lots of critical questions, but quality and commitment at the end."

His comments come amid reports that the German bid committee set up in July last year has struggled to recruit sponsors in recent months because of the financial crisis.

Adam told ATR that Munich was currently setting up an office to put together its bid and that "things look good."

"We have planned the key projects time- wise and are now going into the details," he said, noting that they would include discussions on budgets.

Wilfred Spronk, the bid's managing director since last summer, returns to the bid team at the end of the month after time off due to illness. But ATR understands that he may not play such a prominent role when he rejoins the committee. Spronk is due to make a statement on his plans in the coming weeks.

There is speculation that Bernhard Schwank will shortly join the bid committee from the German Olympic Sports Federation. He would work closely with Adam, a former cross-country skier and biathlete who was previously the managing director of Bavaria tourism agency, Bayern Tourismus.

Munich is bidding to become the first city to host both the Summer and Winter Olympics after staging the 1972 Summer Games.

The German bid calls for Munich to hold ice events, with snow events to be held in Garmisch-Partenkirchen, site of the 1936 Winter Games, and sliding events in Koenigssee.

Last month, IOC Vice President Thomas Bach said Munich had a good shot at winning the 2018 Olympics, insisting the readiness of many venues made it one of the favorites to land the Winter Games.

Competition will come from PyeongChang, South Korea, which is mounting its third bid to stage a Winter Games after failing in its last two attempts. France plans to unveil its 2018 bid city in March; the three towns interested in a candidacy are Annecy, Nice and Grenoble. China is also said to be preparing a bid for 2018.

The race for the 2018 Olympics formally begins after the IOC selects the 2016 Olympic host at the IOC Session in Copenhagen in October.

But the first information for cities interested in bidding for the 2018 Winter Games is sent to all 205 NOCs next month. NOCs will receive an invitation to submit an applicant city in July or August. Deadline for submitting applicant cities is mid-October. The IOC hosts an Applicant City Seminar in December.

The IOC will vote on the host city at the 123rd IOC Session in July 2011 in Durban, South Africa.

With reporting from Mark Bisson and Heinz Peter Kreuzer.