CHANGES OF COSTS, EXPENDITURES AND REVENUES BETWEEN BIDDING AND STAGING THE OLYMPIC GAMES FROM SYDNEY 2000 TO TOKYO 2020

Abstract

Expected large cost overruns of Olympic Games have recently led to negative referendums. We will analyze the costs and revenues of the Olympic Games and how they change from the first budget estimation promise made to the taxpayer to the end of the Games. To accomplish this, we separate revenues and expenditures of Organizing Committees of the Olympic Games (OCOG) from capital investments for Olympics-specific infrastructure (e.g., Olympic Stadiums, Villages) from Sydney 2000 to Tokyo 2020. Irrespective of inflation in all Games, costs for Olympics-specific infrastructure overrun moderately. Expenditure overruns of the OCOG are usually compensated by increased revenues and have even ended in small profits. This paper shows the most complete set of cost, revenues and expenditure sources to calculate budget overruns while differentiating the OCOG from the non-OCOG budgets. Further, we distinguish between false budget estimations and cost overruns, then we end with a theory-led discussion of reasons for overruns, and give management recommendations.