How can the Olympics generate billions of dollars for their hosts?
- July 27, 2024
- 0
Every four years the world to the biggest sporting event testifies: the Olympic Games. But this is not just the struggle of athletes, why? Because there is a
Every four years the world to the biggest sporting event testifies: the Olympic Games. But this is not just the struggle of athletes, why? Because there is a huge money cycle involved!
But how do you make money from the Olympics? To answer your question so down let’s take it.
How does the International Olympic Committee (IOC) manage to raise billions of dollars?
The IOC, which is responsible for managing the Olympic Games, broadcasting and sponsorship rights It generates billions of dollars in revenue through sales.
For example, they earned almost $4 billion from the 2006 and 2008 Games, $5 billion from the 2010 and 2012 Games, and almost $6 billion from the 2014 and 2016 Games. Today, sales of broadcast rights make up the IOC’s total accounting for almost 75% of turnover.
Broadcasting rights are the Olympic Games’ largest source of revenue.
Publishing rights in North America, since 1997 more expensive than the rest of the world sales. NBC has broadcast every Olympic Games since 2000 and every Summer Games since 1988.
In 2014, NBC signed a contract to secure the U.S. broadcast rights until 2032. A $7.75 billion deal signed. The agreement includes television, internet and mobile rights, while other media will be restricted from broadcasting the opening and closing ceremonies and athletics competitions.
Launched in 1985, the Olympic Partner Program grants exclusive marketing rights to a select group of corporate sponsors.
In addition to well-known brands such as Coca-Cola Technology companies like Airbnb and Alibaba was also in this program. According to IOC data, top sponsors collectively paid almost 1 billion dollars for the 2014 and 2016 Olympic Games.
These brands are given the right to use Olympic logos. But getting these rights is just the beginning; they still have to spend millions to promote the logos. Coca-Cola for example during the Olympic Games invests a lot of money to make an athlete drink coke.
How much do you think the Paris Olympics will cost France?
In an interview with Bloomberg in January 2024, the CEO of the Games’ organizing committee said that the Olympic Games in Paris to meet cost targets He said everything was fine.
The centerpiece of the city’s proposal is that 95% of the infrastructure is existing or temporary to keep construction and maintenance costs low. Original budget for the 2024 Paris Olympics 8 billion euros or 8.2 million US dollars was determined as.
Sources: Investopedia, The Wall Street Journal
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Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.
