How London laid the groundwork for sustainable sporting architecture :

https://www.youtube.com/watch?v=mzakBHGxhlY

● In the early 2000s, the east end of London was an urban wasteland.
● The 2012 Olympic Games were awarded to London in 2005, with a focus on legacy and
sustainability in stadium and venue architecture.
● Queen Elizabeth Olympic Park in Stratford, London, was built on a former industrial
heartland that had been declining since the 1960s.
● The area underwent significant cleanup and preparation for the Olympic Games, while
legacy discussions took place simultaneously.
● Legacy venues in the park, such as the London Aquatics Centre, ArcelorMittal Orbit,
London Stadium, Copper Box Arena, VeloPark, and Lee Valley Hockey and Tennis Centre,
are well-used for both local play and international competitions.
● Lee Valley Regional Park Authority, a government-appointed body, operates some of the
venues, while the London Legacy Development Corporation focuses on using the Olympic
spirit to benefit local people and bring new investment to the area.
● The London Legacy Development Corporation was formed in 2012 to ensure the games'
legacy would be sustained for future generations, learning from past Olympic mistakes like
ecological impact, displacement of locals, and abandoned venues.
● The Aquatics Centre, for example, was fitted with removable spectator wings to change the
depth and accommodate various audience sizes, making it adaptable for both the games and
general public use.
● Since the games, 30 million people have visited Queen Elizabeth Olympic Park, but recent
reports suggest a shortfall in revenue threatens the successful Olympic legacy in London.
● The London Stadium, in particular, has undergone a transformation from its 2012 state, with
significant investment required to turn it into a football stadium, serving as an anchor tenant
and attracting other events.
● Ensuring these places are open to the community while remaining financially viable can be
challenging, as seen with the London Stadium's financial pressures.
● When considering hosting the Olympics, it is crucial to think about the legacy early on and
determine who will own and manage the venues after the games.
 How the Olympics Became So Expensive For Host Cities :
https://www.youtube.com/watch?v=GYnZkFVXvts

● The 2016 Rio Olympics were one of the most expensive summer games, with a total cost of
over $20 billion, significantly exceeding the initial estimate of $2.8 billion.
● The high costs were due to large stadiums, impressive athletic villages, top-notch training
facilities, and additional expenses such as new subway lines, renovated shipping ports, a
doping testing lab, and environmental cleanup costs in Guanabara Bay.
● Seven months after the games, many of the venues were left vacant and crumbling,
becoming a byproduct of the city's struggle with debt and colossal maintenance costs.
● Overrun costs are common in hosting the Olympics, with every games since 1960, except
one, experiencing significant cost overruns.
● Economists argue that hosting the games does little for the betterment of a city, with a one in
ten chance of having a favorable outcome, making it a risky investment.
● Others believe that the games are vital for a city's infrastructure, leading to better roads,
metro development, and housing.
● The Olympics have grown from a small event in 1896, where no women were allowed to
compete, to a massive international event with Summer and Winter Games.
● The evolution of telecommunications played a significant role in the rise of the Olympics'
popularity, with live broadcasts reaching millions worldwide.
● Prestigious venues were built to showcase national pride, draw tourism, create jobs, and
bolster local businesses.
● Cost overruns became a significant issue in 1976 with the Montreal games, where the mayor
famously declared that the Olympics could not have a cost overrun, but they ended up
having a tenfold increase in costs.
● The Los Angeles 1984 Summer Games were the first and only to have an operating surplus
of $215 million, thanks to their leverage as the only bidder and the existing infrastructure in
place.
● The IOC saw the opportunity to restructure their television revenue distribution during the
LA games, taking 33% of the revenue, compared to the 10% they took in the 1980 Moscow
games.
● The percentage of broadcast rights revenues the IOC takes has increased over the years,
reaching 73% in the 2018 games.
● Hosting the games has become more expensive as more nations participate and more sports
are added, creating a massive competition.
● Before a city begins constructing elaborate venues, putting in a bid to host the games can
cost tens of millions of dollars.
● Winning an Olympic bid comes with a steep price tag, including building the largest single
facility, the Olympic Village, which must accommodate thousands of athletes and coaches,
along with athletic training facilities, restaurants, entertainment facilities, and medical clinics.
● Security costs, infrastructure, road infrastructure, telecommunications infrastructure, and
billions of dollars in potential overrun costs must also be considered.
● The Summer Games are typically more costly and expensive than the Winter Games due to
the higher number of athletes, competitions, and specialized facilities required.
● Economist estimates put the actual numbers for the Rio Games at somewhere north of $20
billion, with $2.06 billion going towards sports-related venues and $8.2 billion going
towards legacy builds.
● Nearly five years after the games, most of the long-term use buildings sit vacant, with high
maintenance costs.
● The IOC has made active changes to ensure that cities without a use case for certain sports
venues do not build them in the future, instead opting for temporary structures or utilizing
existing facilities in other countries.
● Government spending on extensive upscale facilities hoping for job growth or revitalizing
infrastructure as a tourist hub is outside the scope of requirements from the IOC to host the
games.
● The IOC's Olympic Agenda 2020, enacted in 2014, is a strategic roadmap for the future of
the Olympics, addressing cost concerns, adapting the games to host cities, limiting expenses
on future bids, and establishing a more economic and sustainable Olympics.
● The 2020 Olympics were thrown a curveball with the COVID-19 pandemic, leading to a
one-year delay and additional expenses.
● The IOC faces challenges with the 2022 Winter Games, as five cities withdrew their bids,
leading the IOC to choose Paris for the 2024 Summer Games and Los Angeles for the 2028
games, effectively placing a pause on bidding.
 How Do the Olympics Make Money? The Olympics Business Model,
Explained : https://www.youtube.com/watch?v=Nyta8HjvW_U

The Economics of the Olympics

● The International Olympic Committee (IOC) generates billions of dollars in revenue

through the sale of broadcast and sponsorship rights.
● The IOC made $4 billion from the 2006 and 2008 games, $5 billion from 2010 and
2012, and almost $6 billion from 2014 and 2016.

Broadcast Rights

● The sale of broadcast rights makes up nearly 75% of the IOC's total income.
● NBC has televised every Olympics since 2000 and every Summer Games since 1988.
● In 2014, NBC entered into a $7.75 billion deal to secure exclusive broadcast rights in
the US through 2032.
● The deal covers all media platforms, including TV, internet, and mobile rights, and
restricts other media from broadcasting the opening and closing ceremonies and
athletic competitions.

Brand Partnerships

● The Olympic Partner Program grants exclusive marketing rights to a select group of
corporate sponsors.
● There are currently 13 top-tier sponsors in this program, including Coca-Cola,
Airbnb, and Alibaba.
● Top-tier sponsors collectively paid around $1 billion for the 2014 and 2016
Olympics.
 ● Brands get to use the Olympic logo and official logos for the Beijing and Tokyo
Games.
● Brands spend tens of millions of dollars per Olympics to get the rights to use these
logos and then spend even more to advertise their sponsorship.

Challenges and Controversies

● Several Olympics sponsors are keeping a relatively low profile around the Winter
Games in Beijing due to escalating tensions between the US and China.
● Companies risk missing global marketing opportunities that their sponsorship deals
bought them.
● The IOC says it recognizes and upholds human rights but takes no position on the
political structure, social circumstances, or human rights standards in the host
country.

Future of Olympic Broadcasting

● NBC is promoting its streaming service, Peacock, especially as more and more
people ditch cable and TV ratings for the Olympics continue on a downward trend.
● The Beijing Olympics are an important opportunity for Peacock, which has been
called out by analysts as being slow to gain traction.
● The next step will be to see whether online broadcasting services like Peacock will
become a bigger part of Olympic deals in the future.