After a city jumps through all the hoops, and builds all the needed arenas and deals with all the crazy hassles of putting on an Olympics and everyone has finally left town, there is always the question of was all the trouble even worth it? Are all those plans made years ago actually playing out the way they were supposed to?
Well, for the organizers of the 2014 Winter Games in Sochi, Russia (where every needed arena is being built from scratch), if nothing else, it looks like they are going to make out pretty well financially, thanks to a boatload of domestic sponsorships. The Associated Press has it that the organizers have already raised $1.2 billion in domestic sponsorships — a new Olympic record! — and “hope to secure deals worth another $200 million and finish with a post-games surplus of more than $300 million.” Not too shabby, right?[more]
Even though the global economy is unpredictable and tough, the organizers aren’t going to need any help from the government. “We are really confident we will not apply for public money from the state,” Dmitry Chernyshenko, head of the Sochi organizing committee, told the AP. “There is an obligation of the state to co-invest in the games, but my goal is to have this money as profit of the games.”
The AP notes that “60% of any profits would be put back into sports development in Russia, with the rest going to the national Olympic committee and the IOC.”
One of Sochi’s biggest competitors for sponsorship dollars is another major sporting event the country will be hosting, the 2018 FIFA World Cup. The AP notes that two possible major sponsorships were lost by Sochi last year with “Russian diamond giant Alrosa and gas monopoly Gazprom.”