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Okay, in this segment let's look at the economics of the events and then also look at the media

rights fees so we can do a little bit of comparison and at least you can contemplate the, the rights fees that come from the Olympic games compared with the major team sports and leagues. So the revenue model for the Olympics A little bit different. A couple different elements that don't exist for teams sports. But some of the same. So television media rights. As broadly as we've talked about. Sponsorships. In some ways a bigger piece and one that's contemplated. to last a bit longer and more of a partnership sort of mode, ticket sales, and then, often, lottery and coin programs. Some countries don't allow lotteries related to this type of event. Some do. And most do print, er, print, er, do, do develop Olympic coins which actually sell quite well. So what's the cost of these events? We've looked at some numbers earlier, the most recent budgeted number, final number still. difficult to get your arms around. 13.3 billion for the 2012 London Olympics. So how does that compare with past games. Again, this is Olympic accounting numbers, grabbed as best we could from various sources. but, but here's an overview of how that number compares with Past expenditures and you can see it's a pretty wide range of numbers, but actually a pretty good jump from what it has been in past games, and we'll talk about, one that's not listed up there in, in just a moment. The, the one that I like to highlight is the LA games. Again, why is that number so low relative to the others? And one reason is, that, that the number, the Montreal number, which I have an asterisk by, because that's still been one of the most difficult to understand, in terms of the expenditures that were made. And it's also, the 1 that many people say, it's really where the Olympic games became problematic in terms of people

and this was in the midst of the US Iranian hostage crisis. those games boycotted by the United States. but they were constructed by sponsors. it was a difficult place to think about the games being hosted. but there is little new construction. So LA was really the lone option and LA. that number for the London games. Cities state and federal at risk. because essentially what you did was paid for staff. is so dramatic because so many new facilities in the success the Olympic Games has had.thinking about. We have missing in there. we will host these games provided we can try to run them profitably. the competition only one city was really involved in the bidding was Tehran and so Iran. And in that sense. we'll run this as a private enterprise. sponsor dollars were used for those and that's why the number is so much lower. to uncover the economics. so now the competition and to be successful says you've gotta promise to build New facilities. that is much more feasible than it was again when. the $13 billion number. And this is really where two concepts came into play and I'll highlight them a little bit later but the key to keep that number so low and we'll talk about it a bit more was that new facilities were not constructed. where in Moscow. And. Very difficult to ascertain what the numbers were there when the Moscow was a city within the Soviet Union and policies made it very difficult to. And you can think too of the tragedies . And I highlighted to you the McDonald's summing pool in the Velodrome /g. the 1980 games. post the Montreal Olympic Games. do we want to host these. The 84 games were unique because at that point no one else wanted the games and when the bidding took place for the LA games the. when the games were at their lowest point. you refurbished existing facilities where you needed to. there's been competition for bidding for the games which didn't exist in 84. Well those were exceptions. So the TV rights have increased which make this construction of new facilities something that. So. in terms of cities thinking about. and very difficult. And we won't put governmental monies. the organizers said.

they ran into a surprise in the London games where they were predicting they would lose money. So. But here's a look at these numbers and see the dramatic increases that have. one reason why that was so high. but that also raised the bar. You can see the dramatic increase both the the lowest point But again if you look at the Los Angeles number. so these rights fees have increased incredibly in terms of what the networks are paying for the rights to broadcast the games. one of the concerns had been when NBC entered into a long-term Olympic broadcast deal that they wouldn't get their money back. the Moscow games. of two 25. And the idea was that finally the games will be broadcast in prime time. and then that led up to Montreal. The value of the games in terms of providing an opportunity to broadcasters to. and then the. It's kind of hard to move back from a number once you get to a higher number and then you see the sole number at 300 million and the increases continuing from there. So again. are people overpaying for broadcast properties for sports properties of the .that happened before Montreal. Well they've.43 billion. in Mexico City the. this whole predictability of. And you see if you go to the most recent numbers where we go to up to 20. And then 1972. Because the games had not been in the United States since 1932. If you think of the 68 Olympics mass student protest. have occurred and this is for US rights fees alone. in fact. the $1. and then. That they. The summer games will broadcast in primetime so it's worth that much more. The value of the games in terms of stickiness. They actually were successful and they actually did meet their numbers. the black power salute and the problems associated with the games. the sad Munich massacre of the Israel athletes in the Olympic village. were relying on what we talked about. but also to have the stickiness in terms of keeping viewers on their network. 20 where we don't yet know where the games will be. you think of the. the over expenditures. providing the opportunity for NBC to talk about their other shows.

even though they thought they had. . It can happen.Olympic games. in this case. to recap. And again. we begun to talk about how that will come into play in terms of where the entities that own the rights to these games. And then we. And the decisions that the very cities that have hosted games have made in terms of the types of facilities they will develop for the games. And we looked at that in relation to where the games have been held. showed that it's hard to overpay. you can think of the world cup and FIFA in the same way. the International Olympic Committee. So. they ended up making their number. we've looked at the Olympic games in terms of the broadcast revenues and we've looked at the success that has occurred in terms of the broadcast numbers. but again. How to be able to determine where the future games will be hosted.