Cost of Olympics

olympics and money.preview

Sporting events have always had a mean of turning  positive profit whether it be at a professional level or amateur level.  Teams always plan to field the most exciting and best team in hope of drawing large crowds with money in their pockets.  There is a reason so much is put into advertisement and the building of venues and that reason is to lure spenders into paying and going to events.  When cities and states vogue for a sports team, they must present a plan on income.  A venue can’t be built in the middle of nowhere and expect major crowds and profit, resulting in a negative net income.  The same goes with International Events such as the FIFA World Cup, the Olympics, and others.  They must prove to the committee why the events should be held at their respectful location.  Along with bringing nations together in a common place, international events such as the Olympics have other goals.  These goals include “political social, economic, and cultural capital gains” along with “increasing human rights awareness and equality”.   They plan on “short term gains from tourism and long term gains from trade and foreign investment”.  This is where the statistics come in handy.  Do the costs constitute the benefits that the host country is gaining from the events?  Recent data provides that the costs do not constitute the benefit.  For example, in 2004, the Olympic Games were held in Athens, Greece.  They finished preparing for the event with a total cost of 9 billion U.S dollars, the fourth most a host country has ever spent on the Olympic Games. When the games were ll over, they had a loss of 14-15 billion U.S dollars.  The Olympic Games of 2014 held in Sochi, Russia was the first profitable games in a decade.  This being said they spent 42 billion U.S dollars and turned a profit of 22 million U.S dollars.  All in all that is not that much of a profit.  There are seven other instances in which the host country turned a negative net income.  So, in conclusion, these games are fun to watch and may bring nations together by breaking down boundaries but in the end they should not be used as a potential profit maker.  The world would love to continue to see these events, but the host country should not plan on a country changing income to occur.

http://en.wikipedia.org/wiki/Cost_of_the_Olympic_Games

http://rbth.com/business/2014/05/02/counting_the_cost_how_much_did_russia_spend_and_earn_in_sochi_36321.html

http://www.anthropology-news.org/index.php/2015/01/30/the-spectacle-and-hidden-costs-of-global-sporting-events/

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