Olympics

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  • Merchandising / “over-commercialise”
  • Olympic commemorative coins, postage stamps and lotteries are called special financing means
  • Olympics

    1. 1. Economic dimension of the Olympic Games<br />Group - 3<br />P Suresh Kumar - 204 <br />P Sriram -196<br />Saurav Daga -178<br />SaurabhSoreng -177<br />Saurabhjawaharya -173<br />
    2. 2. The economic dimension of the Olympic Games<br />No Trends<br />On the one hand the economic dimension depends on why the city wants to host the Games<br />On the other hand it strongly depends on the development level and size of the host city.<br />
    3. 3. Financing the project &investments in infrastructure (Dimension1) “expensive” and “cheap”<br />Expensive<br />Games are “expensive” if they require extensive investments in traffic infrastructure, communication systems, housing and sports facility construction.<br />Eg Barcelona and Seoul and Beijing Munich, Montreal and Athens<br />Maximin compensating short-term expenditures with long-term benefits<br />Cheep<br />Games were “cheap” if cost were largely limited to organising and staging the Games<br />EgLos Angeles and Atlanta<br />Maxim-was maximising short-term profit or avoiding any deficit.<br />
    4. 4. Dimension2 <br />Long-term, and often less considered benefits<br />Enhancing of their image<br />The creation of a higher level of awareness in the world<br />Stimulate tourism<br />Arguments as a location for the settling of industry<br />& other economic and social impacts<br />
    5. 5. Games costs in relation to national accounts<br />Table shows that Olympic Games have no important economic dimension in relation to national accounts<br />Montreal, Canada organized with out country support , completely financing them itself.<br />The private revenues of the<br />OCOG amounted to a mere 5% of the funds required.<br />The remaining 95% were provided by special financing means and the public sector.<br />Olympic debt $2.729 billion<br />
    6. 6. Mega sport events in comparison to the Sydney 2000 Olympic Games<br />
    7. 7. Dimensions<br />Revenues from ticket sales, sponsorship, TV-rights and licensing were chosen to cover the business economic dimensions<br />Macroeconomic dimensions are represented by the number of athletes and sports events which indicate costs related to investments in sport facilities and the organisation.<br />The number of tickets is related to spectators who spent their money in the host city<br />
    8. 8. The dimension “Time”<br /> The start and the end of economic impacts<br />Preparing to stage the Olympic Games is a huge effort of adopting the city’s infrastructure to the needs of the event-Games are awarded to the host city seven years in advance<br />Begins-during the bid process, increase considerably during the preparation phase<br />
    9. 9. Economic Impact<br />
    10. 10. Anticipated VS actual<br />
    11. 11. The development of revenuestelevision rights<br />
    12. 12. Revenues from marketing <br />Sponsoring – 2nd pillar of Olympic financing<br />Before 1984 – no marketing <br />Since 1996 – long term broadcast and sponsor agreement<br />1985 – TOP by IOC  Funding to 199 NOCs, OCOGS, and the IOC<br />2000 – 35 % of ad time during Olympic broadcasting<br />1984 onwards – No of sponsors reduced & increased the revenues<br />
    13. 13. No of enterprises advertising Vs OCOG revenues from sponsoring<br />
    14. 14. Revenues from ticketing<br />Important source since 1986<br />Atlanta and Sydney ticketing – 23 % of OCOG budgeting<br />Total ticket sales revenues from Munich 1972 to Beijing 2008<br />Total number of entrance tickets and share of tickets sold from Munich 1972 to Beijing 2008<br />
    15. 15. Revenues from “special financing means”<br />Coin as financing source – 1st time in Finland – Helsinki game 1952 <br />Peek of this source 1972<br />Olympic Stamps – In Athen 1896 and Tokyo 1964 <br />
    16. 16. The Dimension “Space”<br />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<br />Live TV coverage since 1964 , Internet coverage since 1996 – Global Village<br />
    17. 17. Conclusion<br />In financial pt of view, staging Olympics is much bigger than all other major sport events<br />Over years, financing sources became global (USA Key role – 70% TOP sponsors, 55 % TV rights)<br />2 decisive important changes<br />Financial surplus = Revenues – operating cost (OCOG can be confident)<br />Games reached a dimension that requires huge sporting facilities and adequate infrastructure  More no of tickets, more media representatives<br />

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