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Originally Posted by La Flames Fan
Operating the Games costs money. Where does that come from? The air?
You have to spend money to make money as a business. I know for my two businesses we put up a lot of upfront costs to make profit down the road. It's a similar scenario here. You spend money to update facilities, infrastructure, build new venues, hire people, get everything ready for those 50 days surrounding and including the Olympics. What you get out of that is income from Sponsorships, Broadcast Rights, Ticket Sales, Merchandising, Licensing, IOC Contributions, Tourism, Venues, Low Income/Senior Housing that last and operate far beyond those 50 days.
People seem to forget the income portion of that balance sheet. You can make educated assumptions on income, based on previous Olympic games like Vancouver 2010.
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I don’t think anyone has forgotten about income. It’s why we talk about 3billion in public funding instead of 5 billion. The cost of hosting Olympics is roughly 3 billion more than the revenue generated by the Olympics and roughly 1.5 billion more than the revenue plus the left over infrastructure. And this assumes we need all of the infrastructure and that the cost of this infrastructure is good value and not inflated for Olympic requirements.
I don’t think there is much confusion over this.