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1st
Outgames files for Bankruptcy Protection
A Quebec
government audit revealed 5.3M (CDN) deficit for the 2006 Outgames on
a 15M total budget on November 13, 2006. On December 7, 2006 Montreal
Outgames filed for bankruptcy protection. 3.1M of the deficit is
loans from the government of Montreal and
Quebec . 2.2M is due to private companies and individuals.
The web site for the Outgames was shut down. The company that runs
the web site is listed in the companies due payment.
GLISA
issued a statement to its members distancing GLISA from the financial
problems in Montreal . The GLISA web site gives no mention of the
problems or assistance to the vendors.
Lousie
Roy, Director of the Outgames and Outgames Co-President Mark Tewksbury
are also both on the GLISA board.
Outgames
Director Louise Roy was quoted after the Outgames that the Outgames
should have a 200K surplus. This statement was given to the press,
even though reports now show that the Canadian government was asked
for 1.3M in emergency funding in the weeks preceding the Outgames.
Others
in the 1st Outgames organization were making similar
statements. "There's no way we're going to lose money," agreed
Outgames Press Secretary Pascal Dessureault. "Our budget forecasts a
small surplus. Our financial statements are being audited every month
by the federal and provincial governments. We're really conscious not
to have any deficits at all," he said. Openly
gay Olympic gold medalist Mark Tewksbury, the Outgames'
co-president, said it is critical that the Montreal games not end up
in
the hole financially.
It is not clear how such a large debt could not have been known, but the Quebec government audit revealed no theft or misappropriation of money. What is clear is Montreal Outgames was aware of the financial problems, but did not want the public to know about the financial problems and hoped the Canadian government would pick up the remaining debt. The Quebec government has stated that they will not pay the 2.2M vendor debt as the governments are already owed 3.1 M in loans.
It is not clear how such a large debt could not have been known, but the Quebec government audit revealed no theft or misappropriation of money. What is clear is Montreal Outgames was aware of the financial problems, but did not want the public to know about the financial problems and hoped the Canadian government would pick up the remaining debt. The Quebec government has stated that they will not pay the 2.2M vendor debt as the governments are already owed 3.1 M in loans.
Some of
the well known creditors are Martina Navratilova who is owed $20,000.
Cirque du Soleil is owed $48,209.30. The Montreal International
Marathon is owed $25,902.14. Marketing Signa Inc. is owed
$217,872.15.
The
grand total is 2.2M to various vendors that supported the Outgames.
Outgames bankruptcy protection ends in January and a settlement will
be offered to some vendors. Some of the creditors were secured
creditors and they will be paid first. Many of the small vendors will
likely not be paid.
Sport
officials that were promised free hotel stays for officiating games in
Montreal , found full charges on their credit cards from the hotel 90
days after Outgames did not pay the hotel bills. The officials signed
agreements and were only to pay for incidentals at their hotel.
Links to
complete articles in the Canadian newspapers can be found at the
following web site:
www.sportscomplex.org
Montreal Outgames has not released final debt or payoff information to the public. Most vendors gave up.
Good news from Copenhagen:
2009 Outgames
GLISA has announced that Outgames 2009 in
Copenhagen will go ahead as scheduled and that the city of
Copenhagen has offered almost 4M (USD) to the
Copenhagen Outgames. Montreal Outgames was given over 7.5M (CND)
from Montreal and
Quebec governments.