Presentation by:

Anshul Pareek

Cost of

Olympic Games

Overview• Origin: Ancient Greece, 3000 years ago

• First Olympic in 1896 in Athens

• 2012 Summer Olympics - 26 sports, 10568 Athletes, 204 Nations

• 2014 Winter Olympics -7 sports, 2873 Athletes, 88 Nations

• Governing Body: International Federation (IF)

• International Olympic Committee (IOC): sports, disciplines and events.

• London 2012 US$14.8 billion

Source: www.theguardian.com/sport/2012/oct/23/london-2012-olympics-cost-total

• Sochi 2014 Estimated US$51 billion

Source: www.theguardian.com/sport/blog/2013/oct/09/sochi-2014-olympics-money-corruption

Bidding Process

• 7 Years prior to the game

• Host City Selection

• 50 Cities(including repeats)

• Tokyo as host city of 2020 Summer Olympics

• 2022 Winter Olympics currently underway and and will

conclude in 2015

Costs for Hosting

Operational Costs(OCOG)

Non-Operational Costs(Non-OCOG)

Direct Indirect• Technology Costs

• Workforce Costs

• Administration Costs

• Security Costs

• Catering & Medical Services

• Olympic Villages

• International Broadcast Centre

• Media & Press Centre

• Infrastructure

• Hotel Upgrade Costs

HOST CITY Budget(US) Total Cost(US) Profit/Loss

London,1948 ₤15000 ₤742268 ₤29000

Los Angeles,1984 $320 million $413 million $250 million

Barcelona,1992 $850 million $9.3 billion $10 million

Athens,2004 $15 billion $9 billion $14 billion

Beijing,2008 $44 billion $146 million

London,2012 $10.4 billion $14.6 billion $52.8 million

Sochi,2014 - $51 billion -

Rio De Janerio , 2016

Cost of Olympic Games

Cost OverRun

Economic impact of OLYMPIC GAMES

1. Identifying the impact

2. Evidence from the past

games

3. ATHENS & outlook of

Greek Economy

1.Identifying the impact- Cost-Benefit Analysis

2. Evidence from the Past Games

US$ m Operation cost

Revenue Overall Balance

Munich 546 1090 (687)

Montreal 399 936 (1228)

Los Angeles

467 1123 335

Sydney 1700 1900 0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Munich montreal LosAngeles

sydney

OverallBalance

Operationcost

3.ATHENS & outlook of GREEK

• Significant Slowdown Economy.• Smallest Country • Total cost EXCEEDS estimate cost leads to

Scam 2014 Sochi Russia

• Vladimar Putin-21 Fraud Contracts.• $7 billion-14% of total expenditure.• Unjustified project estimates.• Loss to states:170 million at the stadium.

75 million at BOBSLEIGH venue