Organizing the Olympic Games will make money because from the 1984 Los Angeles Olympics, many countries with a successful business model, the Olympic Games to achieve profit. There are mainly the following money-making channels:
1. Revenue from the sale of broadcasting rights?
Selling broadcasting rights is the most important source of income for the Olympic Games. Prior to the 2004 Sydney Olympics, 60% of broadcast rights revenue was allocated to the IOC. In order to make more money available for the promotion of the Olympic movement, the IOC decided to collect only 49 percent of the broadcasting rights revenue after 2004, which, combined with the rising selling price of the rights, has resulted in an increase in the actual amount of money received by the host countries of the Olympic Games.
2. Commercial sponsorship revenue?
Since 1985, the IOC has categorized sponsors into three main groups and granted each group a corresponding range of operating rights. These include:
(1) TOP Sponsors. 1985 the IOC and the Swiss International Sports Entertainment and Leisure Group signed the TOP Sponsor Program, with a sponsorship base price of $4 million, and participation in the partnership including Coca-Cola and other 35 companies around the world.?
(2) Official sponsors. One by one, the Organizing Committee of each Olympic Games can solicit official sponsors in their own countries, and the revenues will also be distributed between the IOC and the Organizing Committee of each Olympic Games.
(3) Suppliers one way or another. One way or another, the Organizing Committee may invite suppliers to use the Olympic logo on their products, mainly in the field of communication equipment, decorative items, clothing and apparel, and they are required to pay 10-15% of their turnover to the Organizing Committee.
3. Derivative income?
Since the Antwerp Olympics in 1920, when commemorative stamps were first issued, and the Helsinki Olympics in 1951, when Olympic coins were first issued, peripheral products such as Olympic commemorative coins and commemorative stamps were issued for all Olympic Games, and derivatives have gradually become a stable source of income for Olympic Games organizing countries. In addition to mainstream collectibles such as stamps and commemorative coins, some alternative derivatives are also sought after by collectors, such as Olympic-themed lottery tickets and Olympic cell phones.?
4, ticket revenue?
The 1996 Atlanta Olympics*** sold about 8 million tickets, realizing ticket revenues of $425 million, accounting for 25% of the total revenues.
The 2000 Sydney Olympics ticket revenues were as high as $617 million, accounting for 21.78% of the total revenues.
5, construction investment income?
Internationalized events require high construction in the host city, which promotes infrastructure development and economic growth in the region. For example, before the Seoul Olympics in 1988, the government launched projects to expand airports, renovate highways, clean up the Han River, and prevent public health hazards, taking the Olympics as an opportunity to enter the ranks of newly industrialized countries.
The investment in the 1992 Barcelona Olympics amounted to 5 percent of Spain's GDP, and during the 2008 Beijing Olympics, the government focused on 142 projects, including the Ossen Park, the Beijing Capital Airport, and the Beijing South Railway Station, to rapidly upgrade the city's construction management and ecological environment.
6. Tourism industry and related transportation and catering revenues?
According to Tourism Australia, during the 2000 Sydney Olympics, overseas visitors increased by 500,000 people, and the new tourism industry brought in $4.27 billion for Australia.?
7, cultural media income?
During the 2012 London Olympics, the UK organized the London 2012 Festival, which featured more than 25,000 artists and 12,000 performances, and was attended by around 20 million people across the UK, of whom 3 million took part in paid events.