After being delayed by the epidemic for a year, the Tokyo Olympics was finally successfully held. It was not easy.
This Olympics is destined to be different from the past.
In order to prevent the spread of the epidemic, there are currently only three stadiums that allow spectators to enter, namely the football matches held in Miyagi and Ibaraki Prefectures, and the track cycling competitions held in Shizuoka Prefecture.
The rest of the games are played empty.
This also means that it is impossible for the Tokyo Olympics to make a fortune from tickets.
If there is no epidemic, the ticket revenue for this Olympic Games is expected to be 90 billion yen . If converted into RMB, it is about 5.3 billion yuan .
However, most of the venues are now empty, and tickets can be said to be pitiful.
Toshiro Muto, CEO of the Tokyo Olympic Organizing Committee, has stated in previous interviews: The revenue and expenditure of the Tokyo Olympic Organizing Committee will undoubtedly be out of balance.
As early as when bidding for the Olympics, the Japanese government estimated that during the period 2013-2020, the successful bid will bring an economic effect of 2.96 trillion yen in Japan.
Many industries such as catering, retail, tourism, and construction will all benefit from this.
Unexpectedly, the epidemic disrupted all plans. This is destined to be a losing Olympics.
So, under normal circumstances, is hosting the Olympics a loss-making business?
Everyone knows that profit = revenue-cost. If you want to know whether the Olympic Games is profitable or loss, you must first know where the revenue from the Olympic Games comes from and where the costs go.
Let’s take a look at income first.
The main sources of income for the Olympic Games are: global TV broadcasting fees, domestic sponsor income, global sponsor income, tickets, and Olympic derivatives.
Among them, TV broadcasting fees accounted for the largest proportion, close to half of the entire source of income.
According to media estimates, the total cost of broadcasting the Tokyo Olympics to the world is about RMB 17.6 billion.
The cost of the Olympic Games mainly comes from several aspects: the cost of applying for the right to host the venue, the construction and renovation of the venue, the operating cost (such as: competition supplies, staff clothing expenses, guest accommodation, security inspection fees , etc.) , infrastructure construction (including airport Expansion, road expansion, water supply and power supply system transformation, etc.) .
Roughly classified, it can be divided into direct expenditure and indirect expenditure.
Direct expenditure refers to expenditures related to the Olympic Games, such as the construction of stadiums, Olympic villages, reporters villages, and press centers.
Indirect expenditures refer to expenditures on infrastructure, environmental protection, and hotel catering services.
One thing to note here is that when calculating the benefits of the Olympics in the world, the cost of indirect expenditures is usually not considered. In other words, the actual cost of the Olympics is actually a bit more than the book .
The modern Olympics has burned more and more money. Judging from the actual cost map of the Olympic Games released by the American think tank Foreign Relations Association, since 1996, whether it is the Summer Olympics or the Winter Olympics, the cost has been higher than budget .
The cost of the Sochi Winter Olympics in 2014 directly reached 51 billion U.S. dollars, setting a record for the most expensive Olympics in history.
Of course, hosting the Olympic Games can definitely bring some hidden benefits, such as improving infrastructure, boosting the tourism industry, enhancing international influence, and so on.
This is why many countries would rather burn money to host the Olympic Games.
Let’s take a look at the situation in the past.
It can be seen that the summer Olympics after 2000 still suffered most losses.
Among them, the Athens Olympics, the London Olympics and the Rio Olympics all suffered losses. And Athens is a huge loss, up to 8 billion US dollars! Rio’s $2.1 billion loss is not a small amount.
In the other two games, the Sydney Olympics and the Beijing Olympics made profits of 360 million U.S. dollars and 146 million U.S. dollars respectively. Compared with the loss of billions of dollars, it is not easy.
In fact, hosting the Olympics will test a city or even a country’s organizational ability. Doing well can create miracles, and doing well is a lingering nightmare for the entire city.
Let’s take a look at the representatives of top students first.
The 1984 Los Angeles Olympic Games in the United States was called the miracle of the Olympic economy.
This Olympics has achieved profitability through a series of commercial operation methods. This is also the first summer Olympics since 1932 to start profitable.
It has set many precedents, the most successful of which is to commercialize the Olympics.
Ubros, who was in charge of running the Olympics at the time, was a business genius. He reformed the commercial sponsorship model of the previous Olympic Games and only cooperated with limited sponsors, using giants to compete to increase sponsorship revenue.
That is, ” only the largest sponsor company in each industry will be the designated product for the Olympic Games .”
As soon as the plan came out, the response was extremely strong. Many companies are eager to try, for example, General Motors provides vehicles, Levi’s sponsors referee clothing, McDonald’s opens Olympic chain stores…
Among them, Coca-Cola defeated Pepsi with a bid of $12.6 million and became the largest sponsor of the Los Angeles Olympic Games.
This Olympic Games has invested 500 million US dollars in low-cost, and obtained 250 million US dollars in profits. It is a typical low-cost operation of major events.
This successful business model also left valuable experience for later Olympics.
Another example of top students is the 1992 Barcelona Olympics .
Unlike Los Angeles, which created the Olympic economy, Barcelona used the Olympics entirely for me.
Before the Olympics, the city of Barcelona was very shabby and had poor infrastructure.
The Olympic Organizing Committee was thinking about using the Olympics to drive the construction and development of the city at the beginning of the preparations. Therefore, 90% of the subsequent Olympic expenditures are spent on transportation facilities, telecommunications services and environmental improvement.
In the end, Barcelona built a five-kilometer-long beach, built two ring roads, two tunnels, and rebuilt the port, airport, and city’s drainage system.
From 1989 to 1992, Barcelona’s road facilities increased by 15%, sewage treatment systems increased by 17%, green belts and seaside tourist areas increased by 78%, and artificial lakes and fountains increased by 268%.
In this way, the old look of Barcelona has been changed to a new look.
However, not all cities can hand in full marks.
The Montreal Olympics in 1976 was a complete negative teaching material.
This city in Quebec, Canada, has given it all for the Olympics.
The Olympic Organizing Committee wanted to build a unique Olympic center, so it spent huge sums of money to build venues and supporting facilities, so that it exudes the atmosphere of local tyrants from inside to outside.
However, the price is that the government cannot make ends meet and the debt is high.
Montreal suffered a loss of US$2.4 billion for hosting the Olympics and owed a debt of US$1 billion, which was not fully repaid until the end of the 20th century. For the 15-day Olympics, the entire city is in debt for 20 years.
This also gave birth to a new word in the history of the Olympics- Montreal Trap .
Another Olympic Games that is famous for its losses is the 2004 Athens Olympics .
The total investment was 10 billion U.S. dollars and the income was only 1.9 billion U.S. dollars. The huge losses would take decades to make up. This was also one of the reasons why the Greek economy fell apart.
The Rio Olympics, the nearest to us, was also criticized.
Under the condition of imperfect venues, safety, and accommodation, the loss of 2 billion US dollars was called “Brazil disaster” by the Brazilians.
In fact, for the modern Olympics, the risk of loss is still very high, and basically it is over-cost operation. As long as there is a slight lack of organization, hosting the Olympics will become a loss-making business.
In the past two years, the epidemic has greatly reduced interest in the Olympics.
But having said that, the Olympic Games are of decisive importance for athletes. Traditional sports have been greatly impacted by the epidemic, and athletes are really not easy now.
As spectators, we should cheer on the Olympic athletes and wish them a smooth competition, and wish the Tokyo Olympics a smooth run!
 Pei Dongguang. The choice of history-1984 Los Angeles Olympic Games
 Dong Jie. The impact of the Olympic Games on the urban economy
 Wang Hucheng. Enlightenment from the market operation of the Barcelona Olympic Games
 Ma Yaxuan. Research on the post-match development and utilization of the Summer Olympic Games venues since 1972
 CCTV News Client. Tokyo Olympics: Only 3 players are allowed to enter the arena, and a foreign player is suspected of being positive
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