London Olympics

London Olympics 2012Case Study

Case Study Presentation ByJalal Akbar

Usman Zafar

Shayan Wazir

THE LONDON 2012 OLYMPIC

GAMES

Introduction

Olympic Organizing Committee

Economics of the games

Past Olympic Games

2012 Games Plan

Ticketing

Conclusion

SCOPE

It comes from the city-state Olympia that was in ancient Rome.

The Olympics were a celebration of stopping wars to come together for

the Olympics and celebration of the god Zeus.

First held in 1896 in Athens, Greece.

Total Participants were:241,Total sports were 9 and games held

between (6 - 15 April 1896) 10days.

26th time except 1916 and 1944 because of world War

History of Olympic: Games

Source Organization Responsible Amount(in millions)

Broadcast Rights

International Sponsorships Of Games

Ticketing To Games

Domestic Sponsorships Of Games

Licensing Rights

IOC

IOC

Sydney OCOG

Sydney OCOG

Sydney OCOG

$1332

$405

$551

$492

$52

Total $2832

Revenues For Sydney Games(2000)

50% to 65% of the broadcasting rights and international

sponsorships went to OCOG

OCOG is also associated with expenses of planning the games,

housing the athletes and running the events.

OCOG employed several hundred individuals over the four to

seven years leading up and including the games

Role Of OCOG

Allocation Of Revenues From The Sydney Games(2000)

Source Approx. Amount(In Millions) ($)

Sydney Organizing Committee Of The Olympic Games

National Olympic Committee

International Federations

International Olympic Committee

2137

321

200

173

Total $2832

ECONOMICS OF GAMES

Revenues Generated for

2000 Sydney Games. $

2,832 Millions

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Amount ( inMillions)

Broadcast Rights

InternationalSponsorship ofGames

Ticketing toGames

DomesticSponsorship ofGames

Licensing Rights

Allocation of Revenues from the Games.

Allocation of

Revenues from the

Games. $ 2,832

Millions

$0

$500

$1,000

$1,500

$2,000

$2,500

Amount ( inMillions)

SydneyOrganizingCommittee

National OlympicCommittees

InternationalFederation

InternationalOlympicCommittee

Using its allocations of the Olympic revenues, the host city OCOG

had to plan for, organize & manage the 17 days of the game, all with

in the contractual obligations set forth by IOC.

PREPARING FOR & MANAGING THE GAMES

Staging the opening ceremony, closing ceremony & sporting events.

Arranging for required stadia, arenas, training facilities & equipment.

Housing & feeding the athletes & officials.

Anticipating & solving potential transportation problems

Meeting the needs of the media.

Providing security to ensure a safe & peaceful Olympics.

THE MAJOR TASKS ARE

Infrastructure costs ranged

for SYDNEY, ATHENS &

BEIJING

$ 2 billion for Sydney.

$ 15 billion for Athens

$ 40 billion For Beijing.

LAST THREE GAMES REVENUE

LONDON OLYMPICS 2012 GAME PLAN

London Olympics is an “Everybody Game”

Stakeholders are 60 million British.

Free Open Air Festivals before games.

Large Screen TVs around UK.

Preliminary Football Rounds at Glasgow, Cardiff, Manchester, Brimingham and

Newcastle.

Availability of tickets to all at a accessible price.

ATMOSPHERE

USMAN ZAFAR

Initial Budget in 2004 : £2 billion

Revised Budget in 2007 : £3 billion

o £560 m two new venues (including £250 m for the Olympic

Stadium).

o £650 million for the Olympic village.

o £1.5 billion to run the Games.

o £200 million on security.

BUDGET

o Estimated in 2011 : £9 billion

Projected revenue : £ 3.75 billion

£1.5 billion from a special Olympic National Lottery.

£625 million from a council tax surcharge of £20 per year for London households.

£560 million from IOC television and marketing deals.

£450 million from sponsorship and official suppliers.

£300 million from ticket sales.

£250 million from the London Development Agency.

£60 million from licensing.

PROJECTED REVENUE

6000

4000

2000

Expenditure in $ Mil

Olympic ParkTransportationMisc

6015

20

5

Funding %

National taxesLondon TaxesNational LotteryMisc

£1,500

£625£560

£450

£300

£250£60

Revenue million

Olympic National Lottery

Council tax

IOC Broadcasting SponsorshipTicket sales London Devel-

opment AgencyLicensing.

Projected Source of Revenue

Athens Bei j ing (Est imated) London (Pro jected)2004 2008 2012

7

30

18

Total Expenditure (Billion USD)Total Expenditure (Billion USD)

OLYMPIC PARTICIPATION

Nations Sport Events Athelets (X 100)

0

50

100

150

200

250

300

350

205

26

300

125

204

28

302

112

201

28

301

106

2012 london

2008 Beijing

2004 Athens

Los

Ang

eles

Seo

ul

Bar

celo

na

Atla

nta

Syd

ney

Ath

ens

Bei

jing

1984 1988 1992 1996 2000 2004 2008

0

200

400

600

800

1000

1200

1400

1600

1800

2000

BROADCAST REVENUE (MILLION USD)

Broadcast Revenue (Mil-lion USD)

Seo

ul

Bar

celo

na

Atla

nta

Syd

ney

Ath

ens

Bei

jing

1988 1992 1996 2000 2004 2008

0

100

200

300

400

500

600

700

9 12 10 11 11 12

67

120

195

405

464

606

No of Sponsers

International Sponsors Rev-enues (in millions)

INTERNATIONAL SPONSORS REVENUES

TICKET REVENUE L

os

an

ge

les

Se

ou

l

Ba

rce

lon

a

Atl

an

ta

Syd

ne

y

Ath

en

s

Be

ijin

g1984 1988 1992 1996 2000 2004 2008

6.9

4.4

3.9

11

7.6

5.3

6.8

5.7

3.3

3

8.3

6.7

3.8

6.8

1.56

0.36 0.

79

4.25

5.51

2.28

2

Tickets availabe for sale (in millions) Tickets sold (in millions)Ticket Revenue (in 100 millions)

Total 33 Venues

New Olympic Park – East London

By Developing 500 acre existing industrial and waste land to

include:-

80,000 Seat Olympic Stadium

17,500 Seat Aquatic Center

12,000 Seat London Velopark

12,000 Seat Basketball Arena

15,000 Seat Olympic Field Hockey Center

17,000 Bed Olympic Village

LOCATION AND VENUE

Olympic Stadium

Sport: Athletics & Paralympic Athletics

Location: In the south of the Olympic Park

Permanent or temporary: Permanent

Number of events: 208

Status : Construction completed & Turf laid in Nov 11.

Utility After Ganes : Venue for sports, athletics, as well as cultural & community events.

Cost : £760m

Aquatic Center

Sport: Diving, Swimming & Modern Pentathlon

Location: South-east corner of the Olympic Park



Status : Construction completed in July 2011.

Utility After Ganes : Venue for sports, athletics, as well as cultural & community events.

Cost : £268m

SHAYAN WAZIR

Basketball Arena

Sport: Basketball ,Wheelchair Rugby & Handball (Finals).

Location: In the north of the Olympic Park

Permanent or temporary: Temporary (re-useable)

Number of events: 7

Status : Construction completed in Jun 11.

Utility After Ganes : relocated elsewhere in the UK

Cost :£42 m

Handball Arena

Sport: Handball, Goalball & Modern Pentathlon

Location: west of the Olympic Park


Number of events: 6

Status : Construction completed in July 2011.

Utility After Ganes : Sports, health and fitness club with changing facilities

Cost : £44 m

Velopark

Sport: Track Cycling & Paralympic Track Cycling

Location: North of the Olympic Park



Status : Construction completed in Feb 2011.

Utility After Games : The facility will be owned, funded and run by the Lee Valley Regional Park Authority.

Cost : £105 m

Hockey Center

Sport: Hockey & Paralympic Football

Location: Olympic Park

Permanent or temporary: Temporary

Number of events: 4

Status : Construction completed in Oct 2011.

Utility After Games : The facility will be moved north to Eton Manor.

Lee Valley White Water Centre

Sport: Canoe & Slalom

Location: 30km north of the Olympic Park


Number of events: 4

Status : Opened to Public since Spring 2011.

Utility After Ganes : It will be owned, funded and managed by Lee Valley Regional Park Authority.

Olympic Village

Capacity: 17,000 Beds

Location: Olympic Park


Developer : Qatari Diar and British developer Delancey to manage East Village.

Utility After Games : Will be called East Village and become home to 3,600 families from 2013.

Cost :£557m

Travel of 100% of ticketed spectators by

Public Transport”

Upgradation of East London connectivity.

12 Car Subway shuttle “Olympic Javelin”

Price of ticket to include public transportation.

240,000 passengers/ hour into/out Olympic

Park.

Transportation

Olympic Javelin

• Ten public transport lines feeding into Stratford.

• Representing the capability of a train arriving in the area every 15 seconds.“

• Expenditure for expansion £1.4bn.

• 395 trains services.

• 29 Hitachi six-car electric multiple units capable of 140mph (225km/h)

TICKETING

Ticketing revenue (650 m out of 3 billion (21%)) excellence exp on

infrastructure by ODA

Comparison to other sporting events

Man Utd over the season earnings $ 150 million

NY yankees $ 120 milliion

IMP OF TICKETING REVENUE

Previous experience from other Olympics

2004 Athens - small size of city, limited capacity of venues

2008 Beijing - artificially low prices

2000 Sydney - large city, sports loving country

CONCLUSION

Thank You

London Olympics

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