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New Study: Olympic Games Balance Their Budgets or Generate Surpluses

Calgary 2026 Plan Designed Responsibly

CALGARY, Alberta, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Calgary 2026 Bid Corporation (BidCo) today provided an analysis of a new report that looks at cost overruns and revenue surpluses of the Olympic Games from 2000-2018. The report found that for all the Games during this period, the Organising Committees for the Olympic Games (OCOGs) delivered a balanced budget or a surplus by earning more revenues than originally projected. The report’s executive summary can be found here.

The report focuses on core Olympic costs and revenues in two key areas:  

  • expenditures and revenues of the Organizing Committees (operations of the event)
  • public investment for the main Olympic venues needed to stage the Games

The study was researched and written by two professors and a PhD student who are from Johannes Gutenberg University Mainz (JGU), one of the top five German universities, and The University Paris 1 Panthéon-Sorbonne, built on a history that began in the 13th century.  It is a fully independent, third-party report.

The report intentionally excludes major infrastructure not needed to stage the Games. These projects, such as roads, trains and public facilities, often compliment the Games, are accelerated to coincide with the Games and may be part of the overall Games legacy.  They are not, however, required to stage the Games and as such are not counted as a Games cost.

The study finds that all Organizing Committees between 2000-2018, except Rio 2016 and Sochi 2014, achieved a revenue surplus. PyeongChang 2018 achieved a surplus of US$55 million, Sydney 2000’s revenues were 72% higher than expected, (the highest for the Summer Games), and Salt Lake City’s 2002 revenues were 119% higher than forecast, the highest for the Olympic Winter Games.

Despite some Organizing Committees’ Olympic budgets being overspent due to changed scope, time pressure or late constructions starts, the budgets were balanced or realized a surplus due to increased revenues.  The Vancouver 2010 Games are reported as breaking even, despite the major economic downturn in 2008 which significantly reduced sponsorship revenues and forced cost cutting in its operations budget.  The Vancouver 2010 venue construction program, with a budget of $580 million, was delivered on time and on budget.  

“This report clearly shows that, historically, Games Organizing Committees either balance their budgets or realize a surplus through good planning and rigorous financial management,” said Scott Hutcheson, Calgary 2026 Bid Corporation (BidCo) Chair. “All Olympic Winter Games in this report balanced their books and Vancouver 2010, which was modelled on the Calgary’88 Games, showed that we host Games well in Canada and we’ll do so again in 2026.”

BidCo CEO Mary Moran adds Calgary 2026’s well-researched and independently reviewed plan is responsible.

“The vast majority of the Calgary 2026 venues already exist, they simply need upgrades and that keeps our costs down,” said Moran. “As an extra measure of caution, we have a $1 billion contingency fund for any unexpected costs and we’ve conservatively estimated $2.23 billion in private revenues. This report, both in its research and recommendations, shows the Calgary 2026 Games plan is financially sustainable and our approach is responsible.”

The study concludes with a number of recommendations intended to further reduce the potential for cost overruns and maximize revenue for future Games, most of which are directed to the IOC in their work with OCOGs.

For more information contact: 

James Millar, Director, Communications & Media Relations, Calgary 2026 BidCo
403.891.2026
jmillar@calgary2026.ca

ABOUT CALGARY 2026: The mandate of Calgary 2026 Bid Corporation is to support and promote the development of sport and amateur athletics in Canada through the development and promotion of a bid to hold the 2026 Olympic and Paralympic Winter Games in the City of Calgary, the Town of Canmore and surrounding and other areas as needed to host the Games and, in particular, to develop, co-ordinate and present to the International Olympic Committee a bid to have the City of Calgary named as the host city to stage the Games.

A PDF accompanying this announcement is available at: http://resource.globenewswire.com/Resource/Download/b7946630-aadb-460b-a5dd-f9612d811004

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