For the next 2 weeks we are going to be treated to athletic perfection as the Olympic Games in Paris kick off, but have you ever considered the financial implications of hosting a games?
Revenue:-
Broadcast rights
Ticket sales
Tourism income (perhaps beyond the actual event hosting)
Costs:-
Submitting a bid (this can be hundreds of millions)
Infrastructure
Security
Hospitality
Travel
Whilst the numbers are hard to definitely know, what is certain is that the direct costs of hosting an Olympic Games well outstrip the direct revenues.
Add to that initial cost estimates have been overrun for the last 36 years (by 352% in Rio de Janeiro, by 128% in Tokyo, and by 115% already in Paris).
Broadcast revenue for Tokyo amassed $3.1bn. Even if Paris adds a few dollars onto that, its long way from making up its $8.7bn in costs.
May the best competitors win.
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