How Olympics makes money if at all they do – The Challenges in Revenue Generation. Watch the Video series to understand and know more.
How and Why Olympics became so expensive for Host Cities?
In 2018, the Rio games were estimated to have a total cost of $20 billion, far beyond the Rio organising committee’s initial estimate of $2.8 billion. The city of Rio shelled out $8.2 billion on legacy builds, or builds intended to live well beyond the Olympic’s three-week life-cycle.
Cities incurring overrun costs when hosting the Olympics is not just unique to just Rio; according to the Council on Foreign Relations, since 1960, every Olympics saw high overrun costs. As overrun costs become a growing concern, several cities withdrew their 2022 winter Olympic bids in 2014, citing the potential costs.
The International Olympic Committee (IOC) enacted the Olympic Agenda 2020 in 2014; the agenda provided new regulations specifically to mitigate cost concerns. However, the IOC was faced with another challenge: hosting the Tokyo Olympics amid the COVID 19 pandemic.CNBC
Why Hosting the Olympics is a Big Pain?
It’s no secret that it’s a pricey pain to host the Olympic Games, running billions of dollars above the estimated budget. As the International Olympic Committee receives fewer bids with each problematic games, the future of the tradition is looking unsure.Business Insider
Who makes money on the Olympics and how?
When it comes to the Olympics, if we forget about the glory of a medal, who is really winning? In this video we take a look at a profit and loss breakdown from the previous Olympic games.
A handful of athletes make millions from sponsorship but mostly the competitors are not going to get rich, they are in it for other reasons.
As for host nations, these are astonishingly expensive events, costing more than many countries annual GDP, so are they really getting a return on this investment?
To see who profits the most from the Olympics watch the whole video.Alex Berman