Dunedin ratepayers look set to stump up more than $100,000 to cover losses for the 2022 New Zealand Masters Games. But it could have been worse.
The games were to have been held in Dunedin from February 5 to 13.
By mid-January 3323 competitors had registered for the games, 1462 fewer than participated in the 2020 event.
On January 23 there was a nationwide change in Covid-19 traffic light status to Red and the games were cancelled.
The games are the largest regularly occurring event in Dunedin, bringing significant numbers of visitors to the city and providing an economic benefit of $3 million to $4 million.
The New Zealand Masters Games Ltd owns the New Zealand Masters Games event, and Whanganui and Dunedin are franchise holders.
The Dunedin (New Zealand) Masters Games Trust was established in 2008 to manage the Dunedin games on behalf of the Dunedin City Council, which holds the franchise rights to the two-yearly event in Dunedin up to and including 2036.
The trust has asked the council to underwrite its losses of $106,655 for this year’s aborted games.
Council staff have recommended the council - which has a service level agreement with the trust to underwrite the event until 2036 - agree to underwrite the losses.
The council will consider the request tomorrow.
The biggest loss was in the refund of all competitor registration fees and sport fees, excluding an administration charge of $20 per competitor, which reduced projected entry fee revenue from $342,500 to $60,500.
Under the agreement the council has the right to decline to underwrite losses, or cancel the games if it views forecast losses to be significant.
A report on the operational and financial status of the games was provided to the council on November 23 last year.
It estimated the worst-case loss if the event was cancelled would be about $160,000.
The council resolved at the time to note the trust would request an underwrite should the event later be cancelled because of Covid and approved the games to proceed.
A report from staff to councillors notes an underwrite would provide sustainability for the trust as it plans for the 2024 New Zealand Masters Games, and give confidence to other funders and sponsors on the future of the games.
The underwrite is unbudgeted in the 2021-22 financial year.
