Presentation prepared for the
    ‘IX Seminario Nacional Políticas Públicas de Esporte e Lazer: Brasil 2016: a Olímpiada
    e os impactos desejados nas políticas públicas de esporte e lazer das cidades brasileiras’
             organized by the Ministério do Esporte do Governo Federal brasileiro
e a Prefectura Municipal de São Bernardo do Campo (Estado de Sao Paulo), March 24-27, 2010



    An Economic Overview of the Sport, Social, Urban and
  Environmental Impacts and Legacies of the Olympic Games

                                Professor Dr Ferran Brunet

                          Universitat Autònoma de Barcelona
                  Faculty of Economics & Center for Olympic Studies
TABLE OF CONTENTS

 The Key for Olympic Success
 The Barcelona Model
 The Barcelona Olympic Areas
 The Concentric Circles
 The Economic Impact Scheme
 The BCN’92 Olympic Accounts
 The Olympic Employment
 Barcelona Dynamics: Employment, Works, and Hotels
 The Olympic Games Resources, 1964-2008
 Impacts of the Olympic Games
 Strategic Position vs. Competitiveness: The Best
  European Cities for Business
 The Olympic Economy Decalogue… and Some
  Questions

                    © Ferran Brunet 2010
THE KEY FOR OLYMPIC SUCCESS



  Separate                  Insti-
Agencies for                                              Mixed
                           tutional
Organization                                             Economy
                          Unanimity
   and for
   Works
                                            Excellence
            Urban
                                             of Sports
           Renewal
                                            and Urban
           Capacity
                                             Program




               Source: © Ferran Brunet (1988 and 1994)
The Barcelona Model




Source: © Ferran Brunet (1988 and 2008)
The Barcelona Model



 Organization Forms & Aims


 Urban Renewal Forms & Aims


 Economic Management and Impact
 Forms & Aims


              © Ferran Brunet 2010
The Barcelona Olympic Areas

Main Urban Renewal Areas,
       1986-1992




           Source: © Barcelona City Council (1988)
The Barcelona Olympic Areas

 S-W, Montjuic: Stadium, main other
  sport facilities –Swimingpool…
 S-E, Poblenou: Olympic Village, Port
 N-W, Diagonal Area: Sport facilities,
  Hotels
 N-E, Vall d’Hebron Area: Sport
  facilities, Hotels
 All the city in works!
 Decentralization - Many Sub-sites: all
  region, all big Spain cities
               © Ferran Brunet 2010
The Concentric Circles



                  Concentric circles
                  The organization of the Olympic Games / mega event
1. Organization
                  stimulates investments and these have a strong
                  impact on economic activity, living standards, wages
2. Investments
                  and quality of life.

  3. Impact       The effect of the OG / mega event has been made
                  permanent thanks to strong investments and the
                  enlarged attractiveness and quality of life in the city.




   Source: © Ferran Brunet (1989 and 2008)
The Economic Impact Scheme
                                                                                                                  Before the OG                  After the OG

                        Organization Investments Impact                                                                                                                              Capacities
                                                                                                                                                       olympic organizational Know-how
                                                                                                                                                       Culture of excellence, culture of consensus
                                                                                            Organization
                                                                                            Period 1986-1993                                           Barcelona model of event organization, economic impact and urban transformation

                                                                                       1364 M $ (162.880 M Pta)                                 Major Government and social capital                    Major private and business capital
                        41.450 positions for workers during 6 years




                                                                                                                                                 5390 M $
                                                                                Commercial                 Fiscal
                                                                                                                                                                                          Olympic                                        2622 M $
Temporary occupations




                                                                                  income                  income                                        Urbanization                                                                  Hotels
                                                                                   1256 M $
                                                                                 (149.933 M Pta)
                                                                                                            108 M $
                                                                                                           (12.947 M Pta)
                                                                                                                                                        Houses
                                                                                                                                                        Collective transportation         Legacy                              Business locals
                                                                                                                                                                                                                                     Offices
                                                                                                                                                        Ring road                              8012 M $                              Houses
                                                                                                                                                        Cultural institutions                                                   Olympic port
                                                                                            Investment                                                  Cleaning sports facilities                                                Companies
                                                                           Period 1986-1992      8012 M $ (956.630 M Pta)                               Maritime facade, beaches, parks
                                                                                                                                                   Greater occupation (20.230 positions for work) and major qualifications for work force
                                                                                 Public                        Private                                    Better competitiveness (2002: 6th place in the ranking of European cities)
                                                                                  5390 M $                     2622 M $
                                                                              (643.613 M Pta)               (313.017 M Pta)                                                        Olympic Rent:
                                                                                                                                                                                           702 M $ per year
                                                                                                                                                             Improved and better economic activity, better quality of life
                                                                                                                                                  major Added Value                Improve Strategic Position                 Social cohesion,
                                                                                      Economic and social impact
occupations
 Permanent




                                                                                                                                                                                       Improve Productivity
                                                  20.230 positions




                                                                                                                                                                                                                               improved Rent
                                                                         Period 1986-1992       16266 M $ (1.942.188 M Pta) and permanent           702 M $ per year
                                                                                                                                                                                     Improve Competiveness               and improved Well-being
                                                                                                                                                       Fiscal yield           Improved and better Attractiveness:              of the residents
                                                                      Urban renovation Greater occupation                     Major Activity         150 M $ per year         more capital, residents and tourism
                                                                                                                                               Source: Brunet (1997 and 2002) and this research.

                                                                                                                            Source: © Ferran Brunet (1989 and 2004)
The Economic Impact Scheme

A. Before the OG
       The Concentric Circles
      Temp Employment

B. After the Games
   Due to the O Legacy: Investments
     attracted, Permanent employment
     and skills, Income




              © Ferran Brunet 2010
The BCN’92 Olympic Accounts (I)




          © Ferran Brunet 2010
The BCN’92 Olympic Accounts (II)




           © Ferran Brunet 2010
The BCN’92 Olympic Accounts (& III)




            © Ferran Brunet 2010
The BCN’92 Accounts

A. Source of Funding

  Public- Government (40%) /
   Private-Commercial (60%)

B. Destination of Resources

  Organization (14,5%: Technology,
   Olympic Family) / Investments
   (85,5%: Roads, Communication, Hotels,
    Housing, Sport facilities)


               © Ferran Brunet 2010
Employment
Generated by the Olympics
Barcelona Dynamics: Employment, Works, and Visitors




                    © Ferran Brunet 2010
Barcelona Olympic Dynamics


 1986-1992-1993-2004-2008-2020

 Employment – Unemployment

 Concrete – Works – Construction

 Hotel The Barcelona Model

 Adequate size and situation of
  Barcelona


             © Ferran Brunet 2010
The Olympic Revenues

 TV

 Sponsors

 Governments

 Merchandizing, lotteries…




             © Ferran Brunet 2010
The Revenues of the Olympic Games
   Organizing Committees, 1964-2016




              © Ferran Brunet 2010
The Olympic Expenditures



 Organization: Stable, To minimize it


 Direct Olympic Investment: Variable


 Impact: To maximize it



             © Ferran Brunet 2010
The Expenditures on the
Olympic Games, 1964-2016




       © Ferran Brunet 2010
The Olympic Impacts


 Hotel offer

 Visitors

 Seoul, Barcelona, Atlanta, Sydney,
  Athens, Beijing, London

 The adequate size and situation of
  Barcelona


                © Ferran Brunet 2010
Impacts of the Olympics
   A. Hotel offer: growth before, during and after the
                     Olympic Games




    B. Foreign visitors: before, during and after the
                     Olympic Games




 Source: Jones Lang La Salle IP Inc (2002).
Strategic Position vs. Competitiveness: The Best European Cities for Business
Strategic Position vs. Competitiveness:
    The Best European Cities for Business

 Barcelona European City Ranking
        1990: 11 / 2000: 6 / 2005: 4 / 2010: 4

 Evaluation – Feeling  Investment Decision

 Capacity to Attract

 World Regions – Creative Industries

 Globalization – Competitiveness

 City Strategy: continuity-discontinuity

                   © Ferran Brunet 2010
The Olympic Decalog:
       Economy, Sport, Urban and Environment
I.     The Institutional Agreement.

II.     Mixing Economy: Public Direction & Private Management.

III.    Separate Organs: to Organize the Games (Sports) & to do the Works
       and Investments (Stone).

IV.     The Concentric Circles Principle. The Olympic Resources are Not cost
       but Investment.

V.      Maximize investment & Minimize costs.

VI.     The Excellence Principle: in 2 weeks of Excellence you match the past
       organizing efforts and specially all your new future.

VII.    The first beneficiary of the Games is the State:

        at medium term always a fiscal surplus appears.

VIII. From a strategic perspective the more important is not 2012 but 2013
    and after!

IX.     The Olympic Investments are the Legacy.

X.      The Continuity in Investments is needed to maintain and profit of the
       new Strategic Position of the City and the Country.
                                 © Ferran Brunet 2010
…and Some Questions


 Global Competition and Mega-events.

 Creative Industries.

 World Regions.

 Competition between European cities and regions.

 The current crisis, the depression, and the further Olympics.

 A Finished City: What it needs.

 The city identity, consensus, identification, attractiveness, design,
 glamour.

 Over-stimulation, over-protection.



                             © Ferran Brunet 2010
Thanks for your kind attention!
      An Economic Overview of the Sport, Social, Urban
and Environmental Impacts and Legacies of the Olympic Games

               Professor Dr. Ferran BRUNET

             Universitat Autònoma de Barcelona

                 Centre d'Estudis Olímpics

        Campus Universitari, Plaça Cívica, Edifici N
                 E-08193 Bellaterra, Spain
  Phone +34-93-581-1992 http://www.olympicstudies.uab.es
                  ferran.brunet@uab.es

                    © 1986-2010 Ferran Brunet

Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games

  • 1.
    Presentation prepared forthe ‘IX Seminario Nacional Políticas Públicas de Esporte e Lazer: Brasil 2016: a Olímpiada e os impactos desejados nas políticas públicas de esporte e lazer das cidades brasileiras’ organized by the Ministério do Esporte do Governo Federal brasileiro e a Prefectura Municipal de São Bernardo do Campo (Estado de Sao Paulo), March 24-27, 2010 An Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games Professor Dr Ferran Brunet Universitat Autònoma de Barcelona Faculty of Economics & Center for Olympic Studies
  • 2.
    TABLE OF CONTENTS The Key for Olympic Success  The Barcelona Model  The Barcelona Olympic Areas  The Concentric Circles  The Economic Impact Scheme  The BCN’92 Olympic Accounts  The Olympic Employment  Barcelona Dynamics: Employment, Works, and Hotels  The Olympic Games Resources, 1964-2008  Impacts of the Olympic Games  Strategic Position vs. Competitiveness: The Best European Cities for Business  The Olympic Economy Decalogue… and Some Questions © Ferran Brunet 2010
  • 3.
    THE KEY FOROLYMPIC SUCCESS Separate Insti- Agencies for Mixed tutional Organization Economy Unanimity and for Works Excellence Urban of Sports Renewal and Urban Capacity Program Source: © Ferran Brunet (1988 and 1994)
  • 4.
    The Barcelona Model Source:© Ferran Brunet (1988 and 2008)
  • 5.
    The Barcelona Model Organization Forms & Aims  Urban Renewal Forms & Aims  Economic Management and Impact Forms & Aims © Ferran Brunet 2010
  • 6.
    The Barcelona OlympicAreas Main Urban Renewal Areas, 1986-1992 Source: © Barcelona City Council (1988)
  • 7.
    The Barcelona OlympicAreas  S-W, Montjuic: Stadium, main other sport facilities –Swimingpool…  S-E, Poblenou: Olympic Village, Port  N-W, Diagonal Area: Sport facilities, Hotels  N-E, Vall d’Hebron Area: Sport facilities, Hotels  All the city in works!  Decentralization - Many Sub-sites: all region, all big Spain cities © Ferran Brunet 2010
  • 8.
    The Concentric Circles Concentric circles The organization of the Olympic Games / mega event 1. Organization stimulates investments and these have a strong impact on economic activity, living standards, wages 2. Investments and quality of life. 3. Impact The effect of the OG / mega event has been made permanent thanks to strong investments and the enlarged attractiveness and quality of life in the city. Source: © Ferran Brunet (1989 and 2008)
  • 9.
    The Economic ImpactScheme Before the OG After the OG Organization Investments Impact Capacities olympic organizational Know-how Culture of excellence, culture of consensus Organization Period 1986-1993 Barcelona model of event organization, economic impact and urban transformation 1364 M $ (162.880 M Pta) Major Government and social capital Major private and business capital 41.450 positions for workers during 6 years 5390 M $ Commercial Fiscal Olympic 2622 M $ Temporary occupations income income Urbanization Hotels 1256 M $ (149.933 M Pta) 108 M $ (12.947 M Pta) Houses Collective transportation Legacy Business locals Offices Ring road 8012 M $ Houses Cultural institutions Olympic port Investment Cleaning sports facilities Companies Period 1986-1992 8012 M $ (956.630 M Pta) Maritime facade, beaches, parks Greater occupation (20.230 positions for work) and major qualifications for work force Public Private Better competitiveness (2002: 6th place in the ranking of European cities) 5390 M $ 2622 M $ (643.613 M Pta) (313.017 M Pta) Olympic Rent: 702 M $ per year Improved and better economic activity, better quality of life major Added Value Improve Strategic Position Social cohesion, Economic and social impact occupations Permanent Improve Productivity 20.230 positions improved Rent Period 1986-1992 16266 M $ (1.942.188 M Pta) and permanent 702 M $ per year Improve Competiveness and improved Well-being Fiscal yield Improved and better Attractiveness: of the residents Urban renovation Greater occupation Major Activity 150 M $ per year more capital, residents and tourism Source: Brunet (1997 and 2002) and this research. Source: © Ferran Brunet (1989 and 2004)
  • 10.
    The Economic ImpactScheme A. Before the OG  The Concentric Circles Temp Employment B. After the Games Due to the O Legacy: Investments attracted, Permanent employment and skills, Income © Ferran Brunet 2010
  • 11.
    The BCN’92 OlympicAccounts (I) © Ferran Brunet 2010
  • 12.
    The BCN’92 OlympicAccounts (II) © Ferran Brunet 2010
  • 13.
    The BCN’92 OlympicAccounts (& III) © Ferran Brunet 2010
  • 14.
    The BCN’92 Accounts A.Source of Funding Public- Government (40%) / Private-Commercial (60%) B. Destination of Resources Organization (14,5%: Technology, Olympic Family) / Investments (85,5%: Roads, Communication, Hotels, Housing, Sport facilities) © Ferran Brunet 2010
  • 15.
  • 16.
    Barcelona Dynamics: Employment,Works, and Visitors © Ferran Brunet 2010
  • 17.
    Barcelona Olympic Dynamics 1986-1992-1993-2004-2008-2020  Employment – Unemployment  Concrete – Works – Construction  Hotel The Barcelona Model  Adequate size and situation of Barcelona © Ferran Brunet 2010
  • 18.
    The Olympic Revenues TV  Sponsors  Governments  Merchandizing, lotteries… © Ferran Brunet 2010
  • 19.
    The Revenues ofthe Olympic Games Organizing Committees, 1964-2016 © Ferran Brunet 2010
  • 20.
    The Olympic Expenditures Organization: Stable, To minimize it  Direct Olympic Investment: Variable  Impact: To maximize it © Ferran Brunet 2010
  • 21.
    The Expenditures onthe Olympic Games, 1964-2016 © Ferran Brunet 2010
  • 22.
    The Olympic Impacts Hotel offer  Visitors  Seoul, Barcelona, Atlanta, Sydney, Athens, Beijing, London  The adequate size and situation of Barcelona © Ferran Brunet 2010
  • 23.
    Impacts of theOlympics A. Hotel offer: growth before, during and after the Olympic Games B. Foreign visitors: before, during and after the Olympic Games Source: Jones Lang La Salle IP Inc (2002).
  • 24.
    Strategic Position vs.Competitiveness: The Best European Cities for Business
  • 25.
    Strategic Position vs.Competitiveness: The Best European Cities for Business  Barcelona European City Ranking 1990: 11 / 2000: 6 / 2005: 4 / 2010: 4  Evaluation – Feeling  Investment Decision  Capacity to Attract  World Regions – Creative Industries  Globalization – Competitiveness  City Strategy: continuity-discontinuity © Ferran Brunet 2010
  • 26.
    The Olympic Decalog: Economy, Sport, Urban and Environment I. The Institutional Agreement. II. Mixing Economy: Public Direction & Private Management. III. Separate Organs: to Organize the Games (Sports) & to do the Works and Investments (Stone). IV. The Concentric Circles Principle. The Olympic Resources are Not cost but Investment. V. Maximize investment & Minimize costs. VI. The Excellence Principle: in 2 weeks of Excellence you match the past organizing efforts and specially all your new future. VII. The first beneficiary of the Games is the State: at medium term always a fiscal surplus appears. VIII. From a strategic perspective the more important is not 2012 but 2013 and after! IX. The Olympic Investments are the Legacy. X. The Continuity in Investments is needed to maintain and profit of the new Strategic Position of the City and the Country. © Ferran Brunet 2010
  • 27.
    …and Some Questions Global Competition and Mega-events.  Creative Industries.  World Regions.  Competition between European cities and regions.  The current crisis, the depression, and the further Olympics.  A Finished City: What it needs.  The city identity, consensus, identification, attractiveness, design, glamour.  Over-stimulation, over-protection. © Ferran Brunet 2010
  • 28.
    Thanks for yourkind attention! An Economic Overview of the Sport, Social, Urban and Environmental Impacts and Legacies of the Olympic Games Professor Dr. Ferran BRUNET Universitat Autònoma de Barcelona Centre d'Estudis Olímpics Campus Universitari, Plaça Cívica, Edifici N E-08193 Bellaterra, Spain Phone +34-93-581-1992 http://www.olympicstudies.uab.es ferran.brunet@uab.es © 1986-2010 Ferran Brunet