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London Olympics
2012
Case Study
Case Study Presentation By
Jalal Akbar
Usman Zafar
Shayan Wazir
THE LONDON 2012
OLYMPIC GAMES
Introduction
Olympic Organizing Committee
Economics of the games
Past Olympic Games
2012 Games Plan
Ticketing
Conclusion
SCOPE
It comes from the city-state Olympia that was in ancient Rome.
The Olympics were a celebration of stopping wars to come together for
the Olympics and celebration of the god Zeus.
First held in 1896 in Athens, Greece.
Total Participants were:241,Total sports were 9 and games held
between (6 - 15 April 1896) 10days.
26th time except 1916 and 1944 because of world War
History of Olympic:
Games
Source Organization
Responsible
Amount(in millions)
Broadcast Rights
International Sponsorships
Of Games
Ticketing To Games
Domestic Sponsorships Of
Games
Licensing Rights
IOC
IOC
Sydney OCOG
Sydney OCOG
Sydney OCOG
$1332
$405
$551
$492
$52
Total $2832
Revenues For
Sydney
Games(2000)
50% to 65% of the broadcasting rights and international
sponsorships went to OCOG
OCOG is also associated with expenses of planning the games,
housing the athletes and running the events.
OCOG employed several hundred individuals over the four to
seven years leading up and including the games
Role Of OCOG
Allocation Of Revenues
From The Sydney
Games(2000)
Source Approx. Amount(In Millions)
($)
Sydney Organizing Committee Of
The Olympic Games
National Olympic Committee
International Federations
International Olympic Committee
2137
321
200
173
Total $2832
ECONOMICS OF GAMES
Revenues Generated for
2000 Sydney Games. $
2,832 Millions
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Amount ( in
Millions)
Broadcast Rights
International
Sponsorship of
Games
Ticketing to
Games
Domestic
Sponsorship of
Games
Licensing Rights
Allocation of Revenues
from the Games.
Allocation of
Revenues from the
Games. $ 2,832
Millions
$0
$500
$1,000
$1,500
$2,000
$2,500
Amount ( in
Millions)
Sydney
Organizing
Committee
National Olympic
Committees
International
Federation
International
Olympic
Committee
Using its allocations of the Olympic revenues, the host city OCOG
had to plan for, organize & manage the 17 days of the game, all with
in the contractual obligations set forth by IOC.
PREPARING FOR &
MANAGING THE
GAMES
Staging the opening ceremony, closing ceremony & sporting events.
Arranging for required stadia, arenas, training facilities & equipment.
Housing & feeding the athletes & officials.
Anticipating & solving potential transportation problems
Meeting the needs of the media.
Providing security to ensure a safe & peaceful Olympics.
THE MAJOR TASKS
ARE
Infrastructure costs ranged
for SYDNEY, ATHENS &
BEIJING
$ 2 billion for Sydney.
$ 15 billion for Athens
$ 40 billion For Beijing.
LAST THREE GAMES
REVENUE
LONDON OLYMPICS
2012 GAME PLAN
London Olympics is an “Everybody Game”
Stakeholders are 60 million British.
Free Open Air Festivals before games.
Large Screen TVs around UK.
Preliminary Football Rounds at Glasgow, Cardiff, Manchester, Brimingham and
Newcastle.
Availability of tickets to all at a accessible price.
ATMOSPHERE
USMAN ZAFAR
Initial Budget in 2004 : £2 billion
Revised Budget in 2007 : £3 billion
o £560 m two new venues (including £250 m for the Olympic
Stadium).
o £650 million for the Olympic village.
o £1.5 billion to run the Games.
o £200 million on security.
BUDGET
o Estimated in 2011 : £9 billion
Projected revenue : £ 3.75 billion
£1.5 billion from a special Olympic National Lottery.
£625 million from a council tax surcharge of £20 per year for London households.
£560 million from IOC television and marketing deals.
£450 million from sponsorship and official suppliers.
£300 million from ticket sales.
£250 million from the London Development Agency.
£60 million from licensing.
PROJECTED
REVENUE
6000
4000
2000
Expenditure in $ Mil
Olympic Park
Transportation
Misc
60
15
20
5
Funding %
National taxes
London Taxes
National Lottery
Misc
£1,500.00
£625
£560
£450
£300
£250 £60
Revenue million
Olympic National
Lottery
Council tax
IOC Broadcasting
Sponsorship
Ticket sales
Projected Source of
Revenue
7
30
18
ATHENS BEIJING (ESTIMATED) LONDON (PROJECTED)
2004 2008 2012
TOTAL EXPENDITURE (BILLION USD)
Total Expenditure (Billion USD)
OLYMPIC
PARTICIPATION
0
50
100
150
200
250
300
350
Nations Sport Events Athelets
(X 100)
205
26
300
125
204
28
302
112
201
28
301
106
2012 london
2008 Beijing
2004 Athens
0
200
400
600
800
1000
1200
1400
1600
1800
2000
LosAngeles
Seoul
Barcelona
Atlanta
Sydney
Athens
Beijing
1984 1988 1992 1996 2000 2004 2008
BROADCAST REVENUE (MILLION
USD)
Broadcast
Revenue
(Million USD)
9 12 10 11 11 12
67
120
195
405
464
606
0
100
200
300
400
500
600
700
Seoul
Barcelona
Atlanta
Sydney
Athens
Beijing
1988 1992 1996 2000 2004 2008
No of Sponsers
INTERNATIONAL
SPONSORS
REVENUES
TICKET REVENUE6.9
4.4
3.9
11
7.6
5.3
6.8
5.7
3.3
3
8.3
6.7
3.8
6.8
1.56
0.36
0.79
4.25
5.51
2.28
2
LOS ANGELES SEOUL BARCELONA ATLANTA SYDNEY ATHENS BEIJING
1984 1988 1992 1996 2000 2004 2008
Tickets availabe for sale (in millions) Tickets sold (in millions)
Ticket Revenue (in 100 millions)
Total 33 Venues
New Olympic Park – East London
By Developing 500 acre existing industrial and waste land to
include:-
80,000 Seat Olympic Stadium
17,500 Seat Aquatic Center
12,000 Seat London Velopark
12,000 Seat Basketball Arena
15,000 Seat Olympic Field Hockey Center
17,000 Bed Olympic Village
LOCATION AND
VENUE
Olympic Stadium
Sport: Athletics & Paralympic
Athletics
Location: In the south of the
Olympic Park
Permanent or temporary: Permanent
Number of events: 208
Status : Construction completed
& Turf laid in Nov 11.
Utility After Ganes : Venue for sports,
athletics, as well as
cultural & community
events.
Cost : £760m
Aquatic Center
Sport: Diving, Swimming & Modern Pentathlon
Location: South-east corner of the Olympic Park
Permanent or temporary: Permanent
Number of events: 192
Status : Construction completed in July 2011.
Utility After Ganes : Venue for sports, athletics, as well
as cultural & community events.
Cost : £268m
SHAYAN WAZIR
Basketball Arena
Sport: Basketball ,Wheelchair Rugby
& Handball (Finals).
Location: In the north of the Olympic
Park
Permanent or temporary: Temporary (re-
useable)
Number of events: 7
Status : Construction completed in
Jun 11.
Utility After Ganes : relocated elsewhere
in the UK
Cost :£42 m
Handball Arena
Sport: Handball, Goalball & Modern Pentathlon
Location: west of the Olympic Park
Permanent or temporary: Permanent
Number of events: 6
Status : Construction completed in July 2011.
Utility After Ganes : Sports, health and fitness club with
changing facilities
Cost : £44 m
Velopark
Sport: Track Cycling & Paralympic Track Cycling
Location: North of the Olympic Park
Permanent or temporary: Permanent
Number of events: 28
Status : Construction completed in Feb 2011.
Utility After Games : The facility will be owned, funded and run by the Lee
Valley Regional Park Authority.
Cost : £105 m
Hockey Center
Sport: Hockey & Paralympic Football
Location: Olympic Park
Permanent or temporary: Temporary
Number of events: 4
Status : Construction completed in Oct 2011.
Utility After Games : The facility will be moved north to Eton
Manor.
Lee Valley White
Water Centre
Sport: Canoe & Slalom
Location: 30km north of the Olympic Park
Permanent or temporary: Permanent
Number of events: 4
Status : Opened to Public since Spring 2011.
Utility After Ganes : It will be owned, funded and managed by Lee
Valley Regional Park Authority.
Olympic Village
Capacity: 17,000 Beds
Location: Olympic Park
Permanent or temporary: Permanent
Developer : Qatari Diar and British
developer Delancey to
manage East Village.
Utility After Games : Will be called
East Village and become
home to 3,600 families
from 2013.
Cost :£557m
Travel of 100% of ticketed spectators by
Public Transport”
Upgradation of East London connectivity.
12 Car Subway shuttle “Olympic Javelin”
Price of ticket to include public transportation.
240,000 passengers/ hour into/out Olympic
Park.
Transportation
Olympic Javelin
• Ten public transport lines
feeding into Stratford.
• Representing the capability
of a train arriving in the area
every 15 seconds.“
• Expenditure for expansion
£1.4bn.
• 395 trains services.
• 29 Hitachi six-car electric
multiple units capable of
140mph (225km/h)
TICKETING
Ticketing revenue (650 m out of 3 billion (21%)) excellence exp on
infrastructure by ODA
Comparison to other sporting events
Man Utd over the season earnings $ 150 million
NY yankees $ 120 milliion
IMP OF TICKETING
REVENUE
Previous experience from other Olympics
2004 Athens - small size of city, limited capacity of venues
2008 Beijing - artificially low prices
2000 Sydney - large city, sports loving country
CONCLUSION
Thank You

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Case Study London Olympics 2012: Infrastructure, Budget, Revenue and Legacy

  • 2. Case Study Presentation By Jalal Akbar Usman Zafar Shayan Wazir THE LONDON 2012 OLYMPIC GAMES
  • 3. Introduction Olympic Organizing Committee Economics of the games Past Olympic Games 2012 Games Plan Ticketing Conclusion SCOPE
  • 4. It comes from the city-state Olympia that was in ancient Rome. The Olympics were a celebration of stopping wars to come together for the Olympics and celebration of the god Zeus. First held in 1896 in Athens, Greece. Total Participants were:241,Total sports were 9 and games held between (6 - 15 April 1896) 10days. 26th time except 1916 and 1944 because of world War History of Olympic: Games
  • 5. Source Organization Responsible Amount(in millions) Broadcast Rights International Sponsorships Of Games Ticketing To Games Domestic Sponsorships Of Games Licensing Rights IOC IOC Sydney OCOG Sydney OCOG Sydney OCOG $1332 $405 $551 $492 $52 Total $2832 Revenues For Sydney Games(2000)
  • 6. 50% to 65% of the broadcasting rights and international sponsorships went to OCOG OCOG is also associated with expenses of planning the games, housing the athletes and running the events. OCOG employed several hundred individuals over the four to seven years leading up and including the games Role Of OCOG
  • 7. Allocation Of Revenues From The Sydney Games(2000) Source Approx. Amount(In Millions) ($) Sydney Organizing Committee Of The Olympic Games National Olympic Committee International Federations International Olympic Committee 2137 321 200 173 Total $2832
  • 8. ECONOMICS OF GAMES Revenues Generated for 2000 Sydney Games. $ 2,832 Millions $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Amount ( in Millions) Broadcast Rights International Sponsorship of Games Ticketing to Games Domestic Sponsorship of Games Licensing Rights
  • 9. Allocation of Revenues from the Games. Allocation of Revenues from the Games. $ 2,832 Millions $0 $500 $1,000 $1,500 $2,000 $2,500 Amount ( in Millions) Sydney Organizing Committee National Olympic Committees International Federation International Olympic Committee
  • 10. Using its allocations of the Olympic revenues, the host city OCOG had to plan for, organize & manage the 17 days of the game, all with in the contractual obligations set forth by IOC. PREPARING FOR & MANAGING THE GAMES
  • 11. Staging the opening ceremony, closing ceremony & sporting events. Arranging for required stadia, arenas, training facilities & equipment. Housing & feeding the athletes & officials. Anticipating & solving potential transportation problems Meeting the needs of the media. Providing security to ensure a safe & peaceful Olympics. THE MAJOR TASKS ARE
  • 12. Infrastructure costs ranged for SYDNEY, ATHENS & BEIJING $ 2 billion for Sydney. $ 15 billion for Athens $ 40 billion For Beijing. LAST THREE GAMES REVENUE
  • 14. London Olympics is an “Everybody Game” Stakeholders are 60 million British. Free Open Air Festivals before games. Large Screen TVs around UK. Preliminary Football Rounds at Glasgow, Cardiff, Manchester, Brimingham and Newcastle. Availability of tickets to all at a accessible price. ATMOSPHERE
  • 16. Initial Budget in 2004 : £2 billion Revised Budget in 2007 : £3 billion o £560 m two new venues (including £250 m for the Olympic Stadium). o £650 million for the Olympic village. o £1.5 billion to run the Games. o £200 million on security. BUDGET o Estimated in 2011 : £9 billion
  • 17. Projected revenue : £ 3.75 billion £1.5 billion from a special Olympic National Lottery. £625 million from a council tax surcharge of £20 per year for London households. £560 million from IOC television and marketing deals. £450 million from sponsorship and official suppliers. £300 million from ticket sales. £250 million from the London Development Agency. £60 million from licensing. PROJECTED REVENUE
  • 18. 6000 4000 2000 Expenditure in $ Mil Olympic Park Transportation Misc
  • 19. 60 15 20 5 Funding % National taxes London Taxes National Lottery Misc
  • 20. £1,500.00 £625 £560 £450 £300 £250 £60 Revenue million Olympic National Lottery Council tax IOC Broadcasting Sponsorship Ticket sales Projected Source of Revenue
  • 21. 7 30 18 ATHENS BEIJING (ESTIMATED) LONDON (PROJECTED) 2004 2008 2012 TOTAL EXPENDITURE (BILLION USD) Total Expenditure (Billion USD)
  • 22. OLYMPIC PARTICIPATION 0 50 100 150 200 250 300 350 Nations Sport Events Athelets (X 100) 205 26 300 125 204 28 302 112 201 28 301 106 2012 london 2008 Beijing 2004 Athens
  • 23. 0 200 400 600 800 1000 1200 1400 1600 1800 2000 LosAngeles Seoul Barcelona Atlanta Sydney Athens Beijing 1984 1988 1992 1996 2000 2004 2008 BROADCAST REVENUE (MILLION USD) Broadcast Revenue (Million USD)
  • 24. 9 12 10 11 11 12 67 120 195 405 464 606 0 100 200 300 400 500 600 700 Seoul Barcelona Atlanta Sydney Athens Beijing 1988 1992 1996 2000 2004 2008 No of Sponsers INTERNATIONAL SPONSORS REVENUES
  • 25. TICKET REVENUE6.9 4.4 3.9 11 7.6 5.3 6.8 5.7 3.3 3 8.3 6.7 3.8 6.8 1.56 0.36 0.79 4.25 5.51 2.28 2 LOS ANGELES SEOUL BARCELONA ATLANTA SYDNEY ATHENS BEIJING 1984 1988 1992 1996 2000 2004 2008 Tickets availabe for sale (in millions) Tickets sold (in millions) Ticket Revenue (in 100 millions)
  • 26. Total 33 Venues New Olympic Park – East London By Developing 500 acre existing industrial and waste land to include:- 80,000 Seat Olympic Stadium 17,500 Seat Aquatic Center 12,000 Seat London Velopark 12,000 Seat Basketball Arena 15,000 Seat Olympic Field Hockey Center 17,000 Bed Olympic Village LOCATION AND VENUE
  • 27. Olympic Stadium Sport: Athletics & Paralympic Athletics Location: In the south of the Olympic Park Permanent or temporary: Permanent Number of events: 208 Status : Construction completed & Turf laid in Nov 11. Utility After Ganes : Venue for sports, athletics, as well as cultural & community events. Cost : £760m
  • 28. Aquatic Center Sport: Diving, Swimming & Modern Pentathlon Location: South-east corner of the Olympic Park Permanent or temporary: Permanent Number of events: 192 Status : Construction completed in July 2011. Utility After Ganes : Venue for sports, athletics, as well as cultural & community events. Cost : £268m
  • 30. Basketball Arena Sport: Basketball ,Wheelchair Rugby & Handball (Finals). Location: In the north of the Olympic Park Permanent or temporary: Temporary (re- useable) Number of events: 7 Status : Construction completed in Jun 11. Utility After Ganes : relocated elsewhere in the UK Cost :£42 m
  • 31. Handball Arena Sport: Handball, Goalball & Modern Pentathlon Location: west of the Olympic Park Permanent or temporary: Permanent Number of events: 6 Status : Construction completed in July 2011. Utility After Ganes : Sports, health and fitness club with changing facilities Cost : £44 m
  • 32. Velopark Sport: Track Cycling & Paralympic Track Cycling Location: North of the Olympic Park Permanent or temporary: Permanent Number of events: 28 Status : Construction completed in Feb 2011. Utility After Games : The facility will be owned, funded and run by the Lee Valley Regional Park Authority. Cost : £105 m
  • 33. Hockey Center Sport: Hockey & Paralympic Football Location: Olympic Park Permanent or temporary: Temporary Number of events: 4 Status : Construction completed in Oct 2011. Utility After Games : The facility will be moved north to Eton Manor.
  • 34. Lee Valley White Water Centre Sport: Canoe & Slalom Location: 30km north of the Olympic Park Permanent or temporary: Permanent Number of events: 4 Status : Opened to Public since Spring 2011. Utility After Ganes : It will be owned, funded and managed by Lee Valley Regional Park Authority.
  • 35. Olympic Village Capacity: 17,000 Beds Location: Olympic Park Permanent or temporary: Permanent Developer : Qatari Diar and British developer Delancey to manage East Village. Utility After Games : Will be called East Village and become home to 3,600 families from 2013. Cost :£557m
  • 36. Travel of 100% of ticketed spectators by Public Transport” Upgradation of East London connectivity. 12 Car Subway shuttle “Olympic Javelin” Price of ticket to include public transportation. 240,000 passengers/ hour into/out Olympic Park. Transportation
  • 37. Olympic Javelin • Ten public transport lines feeding into Stratford. • Representing the capability of a train arriving in the area every 15 seconds.“ • Expenditure for expansion £1.4bn. • 395 trains services. • 29 Hitachi six-car electric multiple units capable of 140mph (225km/h)
  • 39. Ticketing revenue (650 m out of 3 billion (21%)) excellence exp on infrastructure by ODA Comparison to other sporting events Man Utd over the season earnings $ 150 million NY yankees $ 120 milliion IMP OF TICKETING REVENUE
  • 40. Previous experience from other Olympics 2004 Athens - small size of city, limited capacity of venues 2008 Beijing - artificially low prices 2000 Sydney - large city, sports loving country