Finance Paper 2 Essay Example | Topics and Well Written Essays - 1000 words

Finance Paper 2 - Essay Example This allocation is mainly to meet the cost of the games preparation. When the central funded elements are included, the total cost to the public purse is estimated to be 9.3 billion pounds. The total budget of the London Olympic organizing committee who is directly responsible for staging the games is estimated to be 2 billion pounds. This is for covering all operational costs. These operational costs are will be met from revenue coming from sale of broadcast rights and ticket sales. The London committee will not finance any sort of capital expenditure. The international Olympic committee requirements necessitate an undertaking that the government is the ultimate guarantor for funding the Olympic Games. The Olympic delivery authority which has been established for ensuring the physical infrastructure has an overall budget of 8.1 billion pounds. However it has been anticipated that the final costs will be around 7.3 billion pounds only. All these budgets are financed by the national l ottery which amounts to 2.2 billion, the GLA Olympic council tax percept amounting to 0.6 billion. Other London 0.3 billion and the central government 6.2 billion pounds. The Olympic village which was to be built using public finance is to be sold off after the games. By June 2010 almost three quarters of the required finance was collected by the committees (Berman). . The Olympic movement of the world consists of large global multifaceted organizations with the IOC as its head. The IOC is not a governmental or United Nations organization. Initially the IOC which was run by wealthy people funded the games from its own pocket. But the growth and popularity and increase in the value of broadcasting rights created independent sources to run the games. One of the significant revenues consists of broadcasting rights sale which has grown rapidly during the century. It was around a million dollars in the Rome Games of 1960 and touched 1700 million dollars during the 2008 Beijing games. The growth has been dramatic since the 1960 games. The key element to the increase was the advent of satellite broadcasting which enabled to beam the television signals to homes instantly. It is to be noted that the broadcasting rights for the Olympic Games are totally owned by the IOC and not by the games organizers.