Presentation by:

Pankaj Sultane

Cost of

Olympic Games

Overview

• 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

• Sochi 2014 Estimated US$51 billion

Cost Bidding

2012 host city election – bidding results

City Country Round 1 Round 2 Round 3 Round 4

London Great Britain 22 27 39 54

Paris France 21 25 33 50

Madrid Spain 20 32 31 —

New York City

United States 19 16 — —

Moscow Russia 15 — — —

• 5 out of 9 cities selected for bidding by IOC on 18 May 2004• Hosting Fee in 2012: U.S $150,000 • London won the right to host the 2012 Games with 54 votes to

Paris' 50

Cost Bidding

Costs for Hosting

Operational Costs(OCOG)

Non-Operational Costs(Non-OCOG)

Direct Indirect• Technology Costs• Workforce Costs• Administration Costs• Transportation Costs• Catering & Medical

Services• Security costs

• 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 GamesTable:1

Cost OverRun2

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

Source:PricewaterhouseCoopers European Economic Outlook June 2004

2. Evidence from the Past Games

US$ m Operation cost Budgetary Surplus/deficit

Munich 546 (687)

Montreal 399 (1228)

Los Angeles 467 335

Sydney 1700 0

-Financing Impact

Macro Economic Impact-some countries needs serious attention.

-GDP & Employment Impact

3. ATHENS-Slowdown Economy • Smallest Country.• Total cost EXCEEDS Estimate cost leads to Downfall.• Even the villages lands are used to conduct OLYMPICS.• Widening Government Budget Deficit.

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

Conclusion

Bibliography• www.theguardian.com/sport/2012/oct/23/london-2012-olympics-cost-total

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

Table 1&2: "Olympic Proportions: Cost and Cost Overrun at the Olympics 1960-2012". Flyvbjerg, Bent; Allison Stewart (2012). Working Paper. Saïd Business School, University of Oxford.

Table 1:

• www.telegraph.co.uk/sport/olympics/2307426/London-2012-must-learn-from-the-1bn-Sydney-hangover.html

• "Official Report of the Games of the XXIIIrd Olympiad Los Angeles, 1984". International Olympic Committee. 1985.

• "How the 2004 Olympics Triggered Greece's Decline - Bloomberg Business". Gibson, Owen (Oct 24, 2012).

• "Olympic Games 2012 olympics olys,Paralympics 2012,Olympic legacy,Olympic Stadium,London(News),UK news,Politics,Sport". The Guardian (London).

• "Sochi 2014: the costliest Olympics yet but where has all the money gone?". The Guardian.

1. PricewaterhouseCoopers European Economic Outlook June 2004

2. Preuss (2004)

3.Source: Greek Statistical Service, European Commission forecasts for 2004