Cycling VM, Bergen 2017 An example of the consequences of external - PowerPoint PPT Presentation

Cycling VM, Bergen 2017 An example of the consequences of external events. Budgeting the Cycling VM in Bergen 2017. Planning in 2013: Condition of getting championship: Norwegian arrangers pay fee to international Cycling Federation ◮ 7 mill Euro, ◮ to be paid in 2017. Cost in NOK: Exchange rate times 7 mill Euro

Cycling VM, Bergen 2017 Exchange rate evolution: 31 Dec 2012 7.341 31 Dec 2013 8.3825 31 Dec 2014 9.0365 31 Dec 2015 9.619 31 Dec 2016 9.0863 26 Sep 2017 9.3355

Cycling VM, Bergen 2017 What would the NOK cost be in the current exchange rates: 31 Dec 2012 7.341 51.4 mill 31 Dec 2013 8.3825 58.7 mill 31 Dec 2014 9.0365 63.3 mill 31 Dec 2015 9.619 67.3 mill 31 Dec 2016 9.0863 63.6 mill 26 Sep 2017 9.3355 65.3 mill Now, after the event: Complaints that the arrangers have not done anything to hedge the exchange rate risk.