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Anonymous A

on Jan 30, 2020

Global

How would you estimate the cost of hosting Olympic Games?

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Vlad

Coach

on Jan 30, 2020

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

YOu can do it from the Cost / Revenue side.

From the Cost side, you have to split into the main drivers:

Construction of Olympic stadiums
Transportation
Hotels
Media
Other renovation / construsction

That method will be quite complicated.

Alternatively, you can calculate from the Revenue side:

Calculate the ticket revenues
Assume that share of ticket revenues in overall revenues (Rest will be Media Rights, Direct revenues from tourists, etc)
Assume that Olympics cover only 50% of the total costs and the rest is paid back within the next years with tourists, etc and even generates profits
Calculate back the total costs

Best

1 comment

Anonymous A

on Feb 01, 2020

Thanks Vlad. Yes I was thinking about approach from ticket sales also. Although I've been googling and found out that broadcasting rights are also a large portion of revenue so maybe we should not assume it's not significant. How would you approach estimating broadcasting rights revenue? I was thinking to estimate the number of people watching Olympics on TV but then it's hard to estimate cost per view...