ECONOMIC DIMENSION OF THE OLYMPIC GAMES

Group - 3

P Suresh Kumar - 204 P Sriram -196 Saurav Daga -178 Saurabh Soreng -177 Saurabh jawaharya -173

THE ECONOMIC DIMENSION OF THE OLYMPIC GAMES

No Trends On the one hand the economic dimension depends on why the city wants to host the Games On the other hand it strongly depends on the development level and size of the host city.

FINANCING THE PROJECT &INVESTMENTS IN INFRASTRUCTURE (DIMENSION1) EXPENSIVE AND CHEAP

Expensive
Games are expensive if they require extensive investments in traffic infrastructure, communication systems, housing and sports facility construction. y Eg Barcelona and Seoul and Beijing Munich, Montreal and Athens y Maxim in compensating short-term expenditures with long-term benefits
y

Cheap
Games were cheap if cost were largely limited to organising and staging the Games y Eg Los Angeles and Atlanta y Maxim- was maximising short-term profit or avoiding any deficit.
y

DIMENSION2

Long-term, and often less considered benefits

y y y y y

Enhancing of their image The creation of a higher level of awareness in the world Stimulate tourism Arguments as a location for the settling of industry & other economic and social impacts

GAMES COSTS IN RELATION TO

NATIONAL ACCOUNTS

Table shows that Olympic Games have no important economic dimension in relation to national accounts Montreal, Canada organized with out country support , completely financing them itself. The private revenues of the
OCOG amounted to a mere 5% of the funds required. The remaining 95% were provided by special financing means and the public sector. y Olympic debt $2.729 billion
y y

MEGA SPORT EVENTS IN COMPARISON TO THE SYDNEY 2000 OLYMPIC GAMES

DIMENSIONS
Revenues from ticket sales, sponsorship, TVrights and licensing were chosen to cover the business economic dimensions Macroeconomic dimensions are represented by the number of athletes and sports events which indicate costs related to investments in sport facilities and the organisation. The number of tickets is related to spectators who spent their money in the host city

THE DIMENSION TIME

The start and the end of economic impacts

Preparing to stage the Olympic Games is a huge effort of adopting the citys infrastructure to the needs of the event-Games are awarded to the host city seven years in advance Begins-during the bid process, increase considerably during the preparation phase

ECONOMIC IMPACT

ANTICIPATED VS ACTUAL

THE DEVELOPMENT OF REVENUES

TELEVISION RIGHTS

REVENUES FROM MARKETING

Sponsoring Before Since 1985

2nd pillar of Olympic financing

1984 no marketing

1996 long term broadcast and sponsor agreement

TOP by IOC Funding to 199 NOCs, OCOGS, 35 % of ad time during Olympic broadcasting onwards No of sponsors reduced & increased the

and the IOC

2000 1984

revenues

NO OF ENTERPRISES ADVERTISING VS OCOG

REVENUES FROM SPONSORING

REVENUES FROM TICKETING

Important source

since 1986 Atlanta and Sydney ticketing 23 % of OCOG budgeting

Total number of entrance tickets and share of tickets sold from Munich 1972 to Beijing 2008

Total ticket sales revenues from Munich 1972 to Beijing 2008

REVENUES FROM SPECIAL FINANCING MEANS

Coin as financing source 1st time in Finland Helsinki game 1952 Peek of this source 1972 Olympic Stamps In Athen 1896 and Tokyo 1964

THE DIMENSION SPACE

The smaller the region, the more autonomous money comes in and the bigger is the economic impulse for the city Similar effect if if the Games are staged in developing countries

Live TV coverage since 1964 , Internet coverage since 1996 Global Village

CONCLUSION

In financial pt of view, staging Olympics is much bigger than all other major sport events

Over years, financing sources became global (USA Key role 70% TOP sponsors, 55 % TV rights)

2 decisive important changes

y y

Financial surplus = Revenues operating cost (OCOG can be confident) Games reached a dimension that requires huge sporting facilities and adequate infrastructure More no of tickets, more media representatives