Chicago's Unsuccessful Bid Listed $68.3 Million for Insurance

An analysis of Chicago 2016's recent unsuccessful bid for the Summer Olympic Games listed an estimated cost of $68.3 million to secure necessary insurance capacity.

That estimate had increased from $44 million contained in the initial proposed operating budget, according to a review of the Chicago 2016 bid that L.E.K. Consulting prepared for the Civic Federation.

Last June, the Chicago City Council initiated a nonpartisan review of the bid, which contained a $4.8 billion operating budget. The move came after the International Olympic Committee turned down Chicago Mayor Richard Daley's request to let the city indemnify the IOC for just $500 million on any operating deficits.

"In June 2009, it became clear that the city would have to assume full financial responsibility for all aspects of the games, as is typically required of host cities by the IOC," according to the L.E.K. Consulting review.

Chicago 2016 had planned to raise the additional money through donations.

A total of $375 million in cancellation coverage would have been extended from the IOC at the conclusion of the recent Vancouver Olympic Games. Chicago 2016 had indicated it would obtain an additional $100 million in cancellation coverage, which protects against risks such as natural hazards, war or terrorism.

Rio de Janeiro was elected as the host city of the 2016 Summer Olympic Games on Oct. 2, 2009.