ECONOMIC EFFICIENCY OF THE OLYMPIC GAMES: PROFITS, COSTS, FINANCING

Abstract

The Olympic Games are one of the largest sporting events in the world, attracting significant financial resources and influencing the economies of host countries. Despite their popularity, the issue of economic efficiency remains debatable. The costs of organizing the Olympics often exceed planned budgets, while the expected economic benefits are not always fully realized. This study aims to analyze the economic efficiency of the Olympic Games by assessing revenues, expenditures, and financing mechanisms, as well as identifying key factors that influence the feasibility of hosting the Olympics. The research employs methods such as literature review, comparative analysis of Olympic budgets, case studies of host cities, and statistical analysis of financial reports. The findings highlight the main sources of revenue, including broadcasting rights, sponsorship contracts, ticket sales, and tourism. Additionally, the study examines the long-term economic impacts on host cities, emphasizing the importance of post-event infrastructure utilization. The conclusions suggest that while the Olympics can generate significant economic benefits, they also pose high financial risks, making strategic planning and effective management essential for ensuring long-term economic sustainability.