economics presentation on cost of olympics
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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
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
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
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 - $51 billion -
Rio De Janerio , 2016
Cost of Olympic GamesTable:1
Economic impact of OLYMPIC GAMES
1. Identifying the impact
2. Evidence from the past
games
3. ATHENS & outlook of
Greek Economy
1.Identifying the impact- Cost-Benefit Analysis
Source:PricewaterhouseCoopers European Economic Outlook June 2004
2. Evidence from the Past Games
US$ m Operation cost Budgetary Surplus/deficit
Munich 546 (687)
Montreal 399 (1228)
Los Angeles 467 335
Sydney 1700 0
-Financing ImpactMacro Economic Impact-some countries needs serious attention.
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
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
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