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How would you estimate the cost of hosting Olympic Games?
Overview of answers
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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
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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...