Miami | Local officials determined that the organizers of the World Outgames Miami will not face criminal charges after an Aug. 16 audit of the organization found no “malicious intent” on their part.
Authorities launched an investigation of the organizers of the World OutGames over their decision to abruptly cancel almost all of its sporting events this past Memorial Day week.
The audit revealed that World OutGames’ organizers kept shoddy financial records, grossly overestimated fundraising and spent more than $600,000 — nearly half the revenue— on consulting, advertising and promotional fees for sporting events that were cancelled on opening day, according to the Miami Herald.
“In reviewing these documents, it became apparent that the general ledger was not necessarily accurate as it was found to contain incorrect check numbers and disbursement classification errors,” according to the audit report. “Compounding matters was the lack of sufficient, complete and organized documentation.”
A breakdown of the audit by the Miami Herald found that out of $1.4 million in the OutGames account, organizers spent $330,218 on consulting fees, $296,498 on advertising/promotion and $106,345 on marketing trips around the world. It was found that only $65,475 was spent on actual sporting events.
OutGames CEO Ivan Cano received $106,992 in consulting fees, according to the audit.
OutGames organizers had said in an email May 26 that “financial challenges” prompted them to cancel nearly all of the sporting events associated with the games that were scheduled to take place through June 4. The opening ceremony, which was scheduled to take place in Miami Beach May 27, and the closing ceremony were also cancelled.
The only events that took place were aquatics, soccer and country/western dance. The organization also went through with the World OutGames 4th Global Human Rights Conference at The Loews Hotel in Miami Beach.
The Miami Herald reported the city of Miami Beach spent $200,000 to sponsor the OutGames and waved permit fees associated with events. The newspaper also said Miami-Dade County agreed to reimburse $18,000 in expenses.
Thousands of athletes from around the world were expected to participate in the World OutGames. Organizers announced their decision to cancel most of the sporting events as hundreds of them were in the process of traveling to Miami Beach.
Miami was to be the first U.S. location to host the World Outgames. The first World OutGames took place in Montreal in 2006, with Copenhagen hosting them in 2009 and Antwerp, Belgium hosting in 2013.
