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Olympic Games Tokyo 2021: Doubts with the most expensive Games in history: Is investing $15,500 million profitable?

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Olympic Games Tokyo 2021: Doubts with the most expensive Games in history: Is investing $15,500 million profitable?

“Hosting is a highly risky business, due to the costs it ultimately incurs,” says a recent study from the University of Oxford.

Olympic Games Tokyo 2021: Doubts With The Most Expensive Games In History: Is Investing $15,500 Million Profitable? - Light Home News
15 most expensive sports in history

The Montreal Games are remembered for the victory of Romanian gymnasts Nadia ComaneciFor the boycott of most African countries and for the enormous debt left on the citizens of the province of Quebec and Canada. A loan whose bill was paid off after 30 years, in November 2006. Deviations from the initial budget of the Games where significant corruption schemes were discovered reached 720%, the highest in Olympic history.

Another gymnast, this time American, Simone Biles He is the prime candidate for the Games’ Big Star, marked by the pandemic and the lack of public facilities. But Tokyo has another guaranteed milestone: it is to become the most expensive sport in history, surpassing London. The initial budget of $12.6 billion has been increased by 24 percent with a delay of one year. According to the organizing committee, this has already risen to 15.4 billion. Within Olympic history, Tokyo is surpassed only by the 2014 Sochi (Russia) Winter Games. Vladimir Putin To rebuild the city on the shores of the Black Sea.

“Hosting is a highly risky business because the costs will outweigh the production costs.” A study published in September 2020 by economists at the University of Oxford fueled the debate about host risks. Economic and political risks in the form of boycotts, terrorism and pandemics from 2020. Only in this way, the report indicates, is it explained that the number of cities of this type of interest has drastically decreased in recent years. For the 2022 Winter Games, only two were submitted: Beijing-Gan- and Almaty (Kazakhstan) and nothing is known about the other contenders—if any—who were interested in the 2032 Games, already in Brisbane (Kazakhstan). Australia) was assigned. Paris and Los Angeles, the two cities selected for the 2024 appointment, were singled out, with cities for that year and 2028 divided.

“Beyond a Strategy”

Economist of the Autonomous University of Barcelona (UAB), ferran brunette, who has published various studies on the economic impacts of the Games, discusses some of Oxford’s arguments. Not all cases can be compared, he argues, taking the example of Barcelona. Brunet believes that the key to success lies in how a city can make the event profitable over the long term. “Of course, sports pose a risk, but there is a strategy behind it. Mega events must have the ability to attract and influence cities, regions and countries to promote for many decades,” he explains.

This is the case of Barcelona, ​​where 85% of the cost of equipment in 1992 was due to public and private investments in infrastructure and urban, sporting and cultural renewal. Brunet assessed the economic impact on the city’s income at $16,266 million as of 2016. “The Games were the beginning of the tourism explosion for Barcelona,” he says. holsa, holding company Those responsible for investing in infrastructure, it was abolished in 2009.

UAB economists cite Beijing 2008 as another positive example, as China knew how to use the event as a political and propaganda tool. Figures for the Chinese capital, which are significantly lower-budget than London and Rio, raise suspicion, as the Oxford study points out, due to the “lack of transparency in Chinese economic data”. On the downside, Brunet cites Athens 2004 as a failure of the city and organization. Even among the most expensive, “they undermined the Greek economy and contributed to the subsequent financial crisis that began in the country in 2007,” says Oxford. . The report also points to the coincidence of the Brazilian crisis with the end of the Rio de Janeiro Games, to which the 2014 World Cup in Brazil should be linked. “Potential Games venues that belong to fragile economies should make sure they don’t end. Like Athens and Rio.”

referendum fashion

Finally, what’s the point of holding the Games in a big metropolis? Did London need the Games to promote itself? Does Tokyo need them? And Paris in 2024? For brunettes, another risk factor is that referendum fashion forces politicians to make a promise. Whoever votes in these matters always opposes it. A notice to the prospective committee that intends to present itself at the first Winter Games in the Pyrenees in 2030.

For now, the definitive winner of the Tokyo Games is American television network NBC, which expects a minimum of $1.25 billion in advertising revenue and can double the profit already achieved in Rio 2016: 250 million.