How much money the Olympics make?

The Olympic Games has been one of the most celebrated global events for decades. The Olympics shows the world the peak performance abilities of athletes. The Olympics is not just a sporting event but also a significant financial enterprise. You probably had this question in mind that such a big world level event must have great revenue.

How much money the Olympics make?

Let’s find out the answer to this question.

The Olympics has different revenue streams such as Broadcasting rights, Sponsorships, Ticket sales, Merchandising and the government and financial support.

Broadcasting Rights

The biggest contribution of the Olympic revenue comes from broadcasting rights. Television networks around the world compete for the broadcasting rights of these games. These high demands usually end up in multi-billion dollar deals.

For example, NBC paid $7.75 billion for U.S. broadcasting rights for the Olympics from 2021 to 2032. This billion dollar investment tells you the importance of the Olympic games. As the Olympics is a world event it draws a huge audience from all the countries in the world.

Sponsorships

The International Olympic Committee has a sponsorship program known as The Olympic Partner program. This program has big companies like Coca-Cola, Samsung, and Visa. These companies are the sponsors for associating their brand with the Olympic rings.

From 2013 to 2016, the IOC generated $3 billion from sponsorship deals. These funds were used for maintaining the high standards of the Olympics.

Ticket Sales

Ticket sales represent another significant revenue stream for the Olympics. The enthusiasm of fans, both local and international, can generate hundreds of millions of dollars. People want to support their countries participating in the Olympics. So the ticket sales does add quite a revenue for the Olympics.

Sometimes the ticket revenue can fluctuate. For example, during the Tokyo 2020 Olympics, the expected ticket revenue was $800 million. However, because of the COVID-19 pandemic the actual ticket revenue collected was much less.

Merchandise

The people who attend the Olympic event usually end up buying Souvenirs from the event. These Souvenirs are various merchandise related to the Official Olympic. The exact revenue of the merchandise is not known, but it does add a substantial amount in the total revenue of the Olympics.

Government and Private Sector Support

Hosting the Olympics requires a lot of money for the country. So, it requires substantial support from both the government and private sector. Hosting countries invest a lot in infrastructure, security, and various other things which are necessary for Olympics games.

History of the Olympic event revenue

Let’s look at some recent Olympic Games and their financial outcomes:

London 2012 Olympics

The total revenue for the London Games was approximately $5.2 billion. This included broadcasting rights, sponsorships, ticket sales, and merchandise.

Rio 2016 Olympics

The Rio Olympics generated around $5.7 billion in revenue, despite facing significant economic and political challenges.

Tokyo 2020 Olympics

The pandemic drastically impacted the financial aspects of the Tokyo Games. Nevertheless, broadcasting rights remained a significant source of income, ensuring the event’s financial viability despite the lack of ticket sales.

How much money will the Paris 2024 Olympic make?

In the year 2022, Paris 2024 Olympic organisers carried out a budget review to better reflect the various costs and risks associated with the project.

Here is the composition of the updated Paris 2024 budget:

Total Organising Committee Budget: $4.78 billion (€4.38 billion)

Private Funding: 100% for the organisation of the Olympic Games

IOC Allocation: $1.31 billion (€1.2 billion)

TV Rights: $819 million (€750 million)

TOP Partnerships: $513 million (€470 million)

Ticketing, Hospitality, and Licensing: $1.53 billion (€1.4 billion)

Ticketing: $1.2 billion (€1.1 billion)

Hospitality: $185 million (€170 million)

Licensing: $138 million (€127 million)

Partnerships: $1.34 billion (€1.226 billion)

Other Revenue: $211 million (€193 million)

Public Funding: 4% to finance the organisation of the Paralympic Games

Additionally, the IOC provides indirect support, such as undertaking the responsibilities of the host broadcast operation and various other forms of Games support to the Organising Committee, amounting to $472 million (EUR 435 million).

Conclusion

Olympics generate a lot of revenue for the hosting country. It also brings lots of economic activities in the country. If you found this article helpful then check out other articles on our website and also consider checking our YouTube channel to learn more about money.

FAQs

How Much Does It Cost to Host the Olympics?

Hosting the Olympics is expensive. For instance, the cost of the London 2012 Olympics was around $15 billion, while the Sochi 2014 Winter Olympics cost a staggering $51 billion, making it the most expensive Olympics in history.

Top 10 Most Expensive Olympic Games

Here are the top 10 most expensive Olympic Games:

1. Sochi 2014 (Winter): $51 billion (€43 billion)
2. Beijing 2008 (Summer): $45 billion (€38 billion)
3. Tokyo 2020 (Summer): $28 billion (€23 billion)
4. London 2012 (Summer): $15 billion (€12.5 billion)
5. Rio 2016 (Summer): $13.1 billion (€11 billion)
6. Athens 2004 (Summer): $11 billion (€9.3 billion)
7. Sydney 2000 (Summer): $5 billion (€4.2 billion)
8. Barcelona 1992 (Summer): $4.7 billion (€3.9 billion)
9. Atlanta 1996 (Summer): $4.1 billion (€3.4 billion)
10. Seoul 1988 (Summer): $4 billion (€3.3 billion)

How Much Does It Cost to Attend the Olympics?

The Olympics ticket prices vary widely, with average prices ranging from $100 to several thousand dollars. Accommodation, travel, and food can add significantly to the overall cost. For example, attending the Tokyo 2020 Olympics could have cost a visitor between $3,000 to $10,000, depending on the length of stay and event choices.

Most Expensive Olympics

The most expensive Olympics to date is the Sochi 2014 Winter Olympics, costing around $51 billion (€43 billion).

How Much Money Do the Olympics Make on Average?

On average, the Olympics generate around $5-6 billion in revenue.

Benefits of Hosting the Olympics

Hosting the Olympics has numerous benefits. These benefits are improved infrastructure, increased tourism, global recognition, and potential economic boosts. The Barcelona 1992 Olympics transformed the city into a major tourist destination.

Most Profitable Olympics

The most profitable Olympics in recent history was the Los Angeles 1984 Olympics. By using existing facilities and securing significant sponsorship deals. It generated a around $250 million.