globalEDGE Blog - By Tag: olympics

The Olympics need no introduction.

The Olympic Games is a storied athletic event that has taken place for centuries.  Since the inception of the modern-era Olympics in 1896, the event has only been canceled three times (1916, 1940, 1944)—all in times of world wars.  The 2020 Summer Olympics, which was set to take place in Tokyo, Japan, was postponed until this upcoming summer due to the barriers that the COVID-19 pandemic set in place. 

The recent spread of the COVID-19 has caused the sports world to practically shut down. College spring sports are canceled, the March Madness Tournament has been canceled, baseball spring training has been canceled, the NBA has suspended all games for the next month. Yet, these sporting events, games, and tournaments bring in billions of dollars in revenue. So, how will this affect businesses and economies around the world?

Back in October, we ran through the financials of hosting the Olympics. Five months and millions of dollars later, hosting the Olympics may remain a dream for Tokyo thanks to the coronavirus. Since the first coronavirus update on the globalEDGE website, officials have discovered thousands of new cases of the virus, along with a new strain, bringing the total number of cases to more than 113,000. About 71% of cases have been found in mainland China, specifically in the Hubei Province, but new and major outbreaks have been found in Italy, South Korea, and Iran. While officials say the overall threat to the United States is moderate, they are worried about the potential that this virus possesses. They say the virus could mutate and become weaker or stronger; it is unpredictable.

The Olympic Games have become a cherished tradition for millions of people all over the world. There is something special about a country uniting over one common goal: winning a gold medal at the Olympic Games. As incredible as the Olympic Games may seem to the viewers at home, the host countries often have an unpleasant experience with Olympic preparations. A country will work for over a decade to prepare for the games, and at the end of the Olympics, most host countries are stuck in debt. As Japan prepares its capital city, Tokyo, to host the 2020 Summer Olympics, they may be realizing they are going to lose more money than they will gain by hosting the Olympics. 

There is no doubt that sports never fail to bring the world together. It provides a platform for national unity and city pride. Hosting international sports events such as the Olympics, Fifa World Cup, or the Super Bowl is the reason for a significant amount of economic development in countries. However, these economic developments can be beneficial but also very costly for host countries. 

As the 2018 Winter Olympic Games transcends upon us, it is an interesting time to research the Olympics business model and gain an understanding of their past successes and cloudy future

When Budapest, a frontrunner to host the 2024 Summer Olympic Games dropped out of the running, an unofficial signal was shown to the Olympic Committee that changes need to be made for the current Olympics business model. The reason being, “to avoid a loss of international prestige” as said by parliament leader, Lajos Kosa. On top of this, the 2022 Olympic Winter Games bids came down to two prospective bidders. Almaty, Kazakhstan and Beijing, China.  This was due to a fair amount of potential cities failing to compete for an Olympic bid. Events like this make the rest of the world wonder, what is happening to the prestige of the Olympics?

The Olympics have been a household staple occurring biannually for multiple centuries now. In less than 100 days, PyeongChang, South Korea will join the ranks of other cities who have had the honor of hosting the Games. This event kicks off with opening ceremonies starting on February 9th, with competitive events beginning on the 8th, till the 25th with 102 events in 15 sports. This year will be the first year for big air snowboarding, which is replacing the parallel slalom, mixed doubles curling, mass start speed skating and mixed team alpine skiing. However, with the hype of Olympics still growing, through social media, ticket sales have not been following the same trend.

In 2009, Brazil won the 2016 Summer Olympics bid. Their economy was healthy, the sixth largest in the world by 2011, and the Olympics were expected to be exceptionally profitable. Despite this, with less than one month until the start of the Summer Olympics in Rio, Brazil may be experiencing one of their worst economic crises since the 1930's. Brazil has been declared a state of financial disaster, and has remained entrapped in a recession causing their economy to shrink 3.8 percent in 2015. A federal bailout of $900 million given to the government was insufficient to revert the crisis. Government corruption, tax exemptions, falling commodity and oil prices, and the Zika outbreak are all contributing factors to the economic turmoil.

The Olympic Games are the biggest collection of sporting competitions in the world. Occurring every two years, a multitude of countries compete for medals in a variety of sporting competitions ranging from track and field to basketball. This year, Brazil will be hosting the 2016 Summer Olympics which has raised a lot of debate considering Brazil’s current economic, health, and political situations.

The recent resignation of Brazil's tourism minister is another sign that things are not looking good for the upcoming Summer Olympic Games in Rio de Janeiro, Brazil. From political corruption to a spreading virus, the Olympic Games are facing some serious challenges.

A few months ago, Brazilian authorities officially announced that $2.3 billion will be spent on infrastructure projects alone for the 2016 Rio de Janeiro Olympic Games. These costs will rise as projects are added along the way, and efforts to solve Brazil’s infrastructure gap continue. The pressure on the country continues as Brazil will be the first South American country to host the Olympic Games. On top of the 2016 Olympics, Brazil is also hosting the 2014 FIFA World Cup this summer and has experienced delays in its infrastructure preparation. Therefore, the focus on infrastructure development has sharpened in Brazil. Now the question is: How will Brazil’s infrastructure growth impact its long-term prospects as an emerging country in the global economy?

Russia has spent more than $45 billion hosting the most expensive Winter Olympics in history with the hope of boosting its economy. People are beginning to doubt if this larger expenditure is really worth it. Although people have already seen the Russian ruble appreciate in value, they are still unsure if the Olympics will take Russia out of the time when the economic growth slowed down to only 1.3 percent last year. This article will analyze the economic data of several countries after hosting major international sporting events so you are able to predict how Russia’s economy will perform after the Winter Olympics.

Just how much does it cost to host an Olympics? The 2014 Winter Olympics in Sochi, Russia are more expensive than every other Winter Olympics combined. The cost is projected to be around $51 billion, which is ten million dollars more than the 2012 Summer Olympics in Beijing, China. This money goes towards construction, transportation, hospitality, security, lodging and more. For events like the Olympics, it is starting to look like a waste of money for all of the over-extravagant, luxurious decorations and celebrations that take place. It has become less about the athletics, and more about which country can make their Olympics look the best to the world. A country like Russia has a lot larger problems that it should allocate $51 billion to, especially if they are trying to clear up their image.

Is it possible to predict the number of medals each country will win in the Winter Olympics by using a combination of economic indicators?  Without economics, predicting the winners would involve an extensive amount of knowledge on numerous sports and athletes. By using an economic model, one does not need extensive knowledge about each sport. In a recent study, Madeleine Andreff and Wladimir Andreff tried to predict the number of medals a country could win in the Winter Olympics by using economics.

The Olympics has long been the venue where a country is able to showcase itself to the world. Just six years ago China threw its coming out party with the 2008 Beijing Summer Olympics and this time around Russia is hoping to showcase its progress only a quarter century removed from Communism. Though one may expect this coming out party to be a grand opportunity to show the emergence of a country under capitalism it is shaping up to be a condemnation on how little Russia has come.

With the lighting of the ceremonial torch in Sochi, Russia last Friday night, the 22nd Winter Olympic Games have officially begun. Beyond capturing the world's attention throughout the month of February, these Olympic Games, like other major sporting events, have profound economic and political effects that resonate throughout the entire international system. Therefore, as the world's eyes turn towards the showcase of some of the world's finest athleticism taking place in Sochi, this post will explore some of the less eye-catching, yet equally significant, aspects of events like the Sochi Olympics and their unique place within international markets and politics.

Japan has had a very successful year so far. It had one of its biggest periods of economic growth in the first half of the year, much bigger than what was originally projected for the country. In addition to this, it was announced on Saturday that Tokyo will host the 2020 Olympic Games. It all presents a positive outlook for Japan as it climbs steadily but surely out of its previous economic slump. According to several central financial officers, this also presents good news for the world economy. Despite this good fortune, there are still many problems that the country must overcome, and it is not certain that the Olympics will be the economic boon to Japan that it appears to be.

The 2012 Summer Olympics will undoubtedly have a major impact on the British Economy. Prime Minister David Cameron has already stated that the Olympic Games will give Britain a 13 billion pound economic boost. With the 2012 Olympics in London shaping up to be the most expensive games in history, much is expected from the Olympics in terms of economic growth for the United Kingdom. However with all this talk about its impact on Britain, the Summer Olympics may have an even greater impact on the global business world.

Despite stories of economic struggles scattered around Europe, there is some bright news from the United Kingdom. According to financial data, the United Kingdom maintained its 16-month recovery in the construction sector. Strong orders for new building projects and a rise in employment in April have helped sustain construction recovery as well as economic growth. The main demand for this boost of construction output has come from commercial building and civil engineering during the spring months and is expected to be carried forward into the summer. Another major cause of this growth is probably not a surprise to anyone—the 2012 Summer Olympics.

In the business world, sports may be best recognized for the many benefits they offer to individual businesses such as sponsorships, brand building, venues for advertisement, and marketing opportunities. However, sports also have major impacts on economies all around the world. It’s no surprise that international sporting events like the World Cup and the Olympics greatly affect the economies of host countries. These economic effects can be positive or negative and can have implications not only on a regional level but a global level as well.

Sponsorships are a huge part of both sports and business. Each depend on the other to gain the benefits sponsorships provide to each party. Businesses look forward to the increased publicity and sales, and athletes, teams, and sporting events count on sponsorships for funding. Still, for businesses, the monetary benefits of a sponsorship can be somewhat difficult to quantify. Yet, countless businesses still participate in sponsorship deals to increase publicity and get their name and logo out there as much as possible.

The Olympic games are designed to be the final decider of the best athletes across the globe. Although hosting countries respect the competition, their main goal is completely different – provide as much stimulus as possible to their economy. London is in the midst of a massive advertising and building spree in preparation for the 2012 Olympics. In the process, Prime Minister David Cameron is busy promoting the tourism opportunities available in London and the London Chamber of Commerce and Industry (LCCI) is working to prepare local businesses for the expected influx of economic activity.

A recent blog triggered some thoughts about how the Olympics today now represent a a joining of countries and economies in a rather harmonious ritual in which people put aside differences to compete under a common set of rules.

Vancouver, Canada; London, United Kingdom; Sochi, Russia… but who’s next? It is no doubt that the International Olympic Committee faces peer pressure when deciding upon the city that will host future Olympics, but why so much competition between nations?

With the 2010 Winter Olympics beginning today, the world looks on with anticipation. The first ever Olympic Games were held way back in 776 BC. Since then, things have obviously changed quite a bit. Everything from the events, to who competes in them, to how we watch them has drastically changed. Until 1960 the Olympics were not televised, but since then businesses all over the globe have taken advantage of the major publicity the Games receive.

The Beijing Olympics are over and the Olympic flag has been handed over to the new host for the games. Having done it twice before (in 1908 and 1948), it is London’s turn once again to host the 2012 Olympics. However unlike the last two times, London’s mayor has recently appointed an IBAC (International Business Advisory Council) to advise him on issues related to the globalization challenges and policies to help make the British economy more competitive in the world. The Games are clearly of enormous importance to London and London's business. The main role of the council will thus be to advise the Mayor on developing opportunities, initiatives and ideas that make London a more appealing place for companies and their employees to live and work in.