Finances of the London Games

Taken from the Library of the House of Commons

Last Updated 27 July 2010

Author: Gavin Berman

Title: “Financing the London 2012 Olympic Games”

Some of the organizations involved in financing the 2012 Olympic Games are covered in detail in a blog post below. Please refer to that post for a more thorough examination of the bodies that govern the Olympics. As for finances…

The Olympic Delivery Authority (ODA) is in charge of physical infrastructure of the games, and has a budget of £8.1bn pounds, but the anticipated expenditures is at 7.3bn (So far so good)

Non ODA expenditures, such as security, brings total to £9.3bn…But this does not include legacy costs and the dismantling of the Olympic stadiums.

Paying for the Olympics:

-National Lottery (2.2bn)

-GLA OLYMPIC council tax precept (0.6bn)

-Other London (0.3bn)

-Central Government (6.2bn)

London Organizing committee for the Olympic Games (LOCOG) estimates an additional 2bn for the actual event.

1.  Bidding

·         29.1m pounds (20m from Department of Culture, Media, and Sport (DCMS) and London Developmental Agency (LDA))

2.  Preparing

·         The Olympic Village originally was planned to be funded by the private sector. Unfortunately, there was a ´´lack of identifiable revenue stream (6) and now much of it falls on the public sector. As we saw in Beijing (See below) there is a lot of waste associated with developing the Olympic Games. It is for this reason, probably, that London is promoting the widespread effort to recycle!

·         National Lottery is a big source of income. Which you can all clearly see due to the image below!!

3. Hosting=£1.5bn

·         Security is a major consideration, and due to the Terrorist attacks in London in 2005 the security forces have to be revamped. Original costs allocate £190 million for the Games

·         You guys probably have enough reading to do for your other classes…But you should check out the graphs below to see just how much uncertainty and yearly changes there is involving the finances of this Mega-Event