Ticket sales projections for the Glasgow Commonwealth Games may be too ambitious and may need to be reviewed, according to a report published today by the Public Audit Committee.
In its report: Progress on Planning for the Delivery of the Commonwealth Games 2014, the committee said that, given the change in economic situation since the Manchester Games in 2002, ticket sales projections for the Glasgow Commonwealth Games could be too ambitious and may need reviewed.
The committee recommends that, in view of budget increases to date, the organising committee (Glasgow 2014 Ltd) should ensure that robust monitoring and risk management procedures are maintained to guarantee that the Games are delivered on time and on budget. The committee’s report also highlights issues surrounding the way in which the budget has been managed to date, and is concerned that potential inflationary increases had not been built into forecasts until May 2010.
Committee Convener Hugh Henry MSP said:
“The Public Audit Committee recognises the importance of a successful Commonwealth Games to Scotland and recommends that ticket sale projections are up to date and realistic to reflect the current economic situation. Given that the organising committee recognises that ticket sales may prove challenging for the Glasgow Games, early action should be taken to ensure maximum revenue is generated should sales figures indicate less than expected uptake.”
“We are concerned that inflation had not been built into budget projections earlier and that the strategic partners continued to deal in 2007 prices. We were given contradictory and unclear evidence on how inflation would be managed going forward. We therefore recommend that inflation continues to be factored into all future budget projections together with a comparison of 2007 prices. We also ask that the Scottish Government ensures that its lead officials are familiar with the detail of such a major project due to the large sums of public funding involved.”
The Committee’s report also comments that:
- the organising committee provides annual updates on its actual income from the areas of sponsorship, ticket sales and broadcasting;
- progress on delivery of the athletes’ village and the Hampden temporary raised platform is monitored regularly to ensure delivery on time and on budget; and
- strategic partners cost any areas of uncertainty and risk mitigating actions to prevent any further significant over-runs and continue to review plans for managing staff continuity to ensure that knowledge is retained in the organisation following any changes in key staff.