The craic was 90 when Norway went nuts for the Bergen Worlds. But spending and sponsorship was weaker than expected. The debt is huge and threatens bankruptcy for the Norwegian federation unless it gets a state bailout (Photo: Sean Rowe)
Bergen Worlds leaves behind huge debts
It may have been a fantastic World Championships in Bergen, but now it appears the party has left massive debts behind.
The Norwegian cycling federation Norges Cycleforbund hosted the championships and has now set out the huge financial trouble it is in.
A crowdfunding drive has been set up and has already raised hundreds of thousands to pay the debts.
But in the context of what is now owed, the monies raised to date are relatively small.
The president of the federation, Harald Tiedemann Hansen, told local newspaper Bergens Tidende that they were very concerned, even before the Worlds ended last Sunday.
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He said while the racing was a runaway success in terms of the number of people who turned out; huge crowds did not translate into revenue.
“It was free to come and watch, and we’re glad about that,” Hansen said.
Bergen’s director of tourism Ole Warberg went much further when speaking to newspaper Dagens Næringsliv. It said the Worlds was “a 10-day people’s party that we haven’t seen the likes of since the liberation after World War II”.
However, while the Worlds expenses were high, they were also hit were extra unexpected costs.
Sponsors were hard to find and when the Norwegian kroner weakened against the Euro it pushed many costs much higher.
The terrorist attacks in Europe this year have meant much higher security for cycling events.
When a terror scare, which turned out to be unfounded, occurred in Nimes just after the Vuelta opening stage it underlined the need for security.
And despite the crowds the local hotels secured fewer overnight stays than expected. Many of the spectators came in for the racing and then went home or stayed in places outside Bergen.
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It was planned to spend 156 million Kroner, roughly €16.6 million.
But when sponsors, especially the Norwegian oil industry, failed to provide the expected backing the budget was reduced to €14.35 million.
However, it is feared despite the budget having been cut back, spending eventually went as high as €22 million.
Estimates in Norway put the overrun, meaning the debt faced by Norway’s cycling governing body, are around €7.4 million.
Some commentators in Norway have accused the federation and the ‘Bergen 2017’ agency established to run the Worlds, of financial incompetence.
An economist and leader of Norwegian Bicycle Riding Association, Arild Salte, was critical in that regard.
“They haven’t been critical enough about expenses and fell into a luxury trap,” he told Norwegian Broadcasting (NRK)
“The federation will have to fire some of its people. The payroll is the only area where they can save money.”
He said the organisers had been caught out in failing to pay early the UCI fee for running the event. It was €7 million but is now about €1.6 million more expensive for the Norwegian to pay because the kroner has weakened so much against the Euro.
However, it has also been estimated the value to the local and national economy has been over €100 million.
“The receipts haven’t been tallied yet, and we’ll have to see what’s come in,” Hansen told Bergens Tidende before the Worlds was even over.
“But I’m worried. I can’t rule out there will be a loss. It’s demanding to host a World Championships, but the public has been fantastic.
“I hope those who have any influence can see that this has been a fantastic promotion of Bergen, of Western Norway and the whole country.
"And (I hope) that they won’t let the cycling federation bleed afterwards.”
One cycling fan moved by the whole spectacle and what the Worlds had done for Bergen has begun a crowd-funding campaign.
Kristin Solhaug’s campaign has spread to several platforms. And now the money is coming in for those sources into the Norwegian federation’s bank account.
At least €400,000 was said to have been collected by the middle of this week.
However, while there is still a huge shortfall, the organisers are hoping the state will bail them out given the benefit the Worlds brought to Norway.
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