Wednesday, July 06, 2005

2012 Olympic Finances

Olympics:

London plans to spend £2.375billion on new facilities for the 2012 Olympic Games and an additional £1.5billion running the event. But where will the money come from and how will it be spent?

Costs To Olympic Budget

  • £1.5billion to run the Games.
  • New venues will cost £560million, including £250million on a new Olympic Stadium at Stratford, east London.
  • £650million for the athletes' village.
  • £200million on security - less than half the amount spent by Athens.

Non-Olympic Costs

  • The Government will spend £800million redeveloping the Lower Lea Valley - this is not included in the Olympic budget.
  • Around £7billion spent on improving London's infrastructure such as the Channel Tunnel Rail Link and extension of the East London line.

Income

  • A special Olympic Lottery competition will provide £1.5billion.
  • International Olympic Committee TV and marketing deals will bring in £560million.
  • Sponsorship and official suppliers - £450million.
    Ticket revenues will be £300million.
  • £60million will be earned through licensing.
  • The London Development Agency are putting in £250million.
  • Up to £625million will come from the council tax increase of £20 per year per London household.

Profit/Loss

London 2012 believe they could end the Games with a surplus of more than £100million.

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