Institutional portal - Municipality of Milan

The resolution, passed today by the Commissions in a joint session, is being examined by the House
 
Milan, January 19 2022 - The Municipality of Milan paves the way for the arrival of the Olympic flag and the full operation of the Milano Cortina 2026 Foundation. It does so by allocating 50 million euros in provisions to guarantee the Foundation against any losses: the essential act for the Organizing Committee to be able start receiving 452 million dollars in television rights, cash flow that from this year and for the next four will be used to prepare for the Winter Olympics. The resolution, passed by the council of Palazzo Marino on the proposal of the councilors for the Budget Emmanuel Conte and for Sport Martina Riva, she was fired today by the council commissions Budget and Olympics and Paralympics Milan Cortina 2026. She will arrive in the city council tomorrow.  
 
This is a necessary act, to which all members of the Foundation (Lombardy and Veneto regions, municipalities of Milan and Cortina d'Ampezzo, autonomous provinces of Trento and Bolzano) are required and which turns on the organizational machinery of the games. 
 
In fact, the obligations of the Foundation's participants include joint intervention in any losses (shortfalls) that may arise. The IOC is ready to advance the organizers, starting from March, the future revenues deriving from the sale of broadcasting rights to international television broadcasters, estimated at 452 million dollars (399,7 million euros at the current exchange rate). To do so, however, it requires the signing of a "Broadcast Refund Agreement", an agreement with which the founding members undertake, jointly and severally liable, to repay the sums in the event of backward steps by the broadcasters.  
 
“The Broadcast Refund Agreement - Councilor Conte explained to the Commission - is the contract that regulates how the funds are advanced. This is an advance in tranches, starting from next March, of around 12 million per quarter for the first year and then gradually increasing, for a total of around 400 million euros. The entities are potentially called upon to cover the risk at the end of the game, in part, to cover any shortfalls of the Foundation. Within this broader risk, one of the parts concerns television rights, determined in quantity and timing. The Dolomite Area and the Lombardy Area are called to participate with a share of 50% each and within the Lombardy Area, as provided for in the candidacy agreement, Milan with an equal share with the Region responds for 50%, equal to approximately 100 million euros. We therefore have two risks: one at the end of the 2026 Games and another, that of being called between now and 2026 to return funds for the lack of participation in the Games, for example that of Russia. Prudentially we have placed ourselves on a 'possible' risk scenario, with a percentage of approximately 50%: compared to 100 million euros, we therefore place a provision of 50 million. We ask the chamber for a favorable opinion: in this way we will be able to set aside 50 million in the financial statements using the provision for contingent liabilities, already present in the budget for 80 million".  
 
Four years after the start of the games, on 6 February 2026, Conte underlined "we are carrying forward jointly with the other bodies the confirmation of the commitments made for the realization of the event" and the resolution represents a "preliminary step to give all the lights greens to the IOC to get the machine started. By the end of the month all entities must give the OK to allow the Foundation to operate."