$2 Billion income to the Host City of the Games
Tulsa2024 hopes the following explains the research behind actual measurement of the financial numbers associated with the Games, and helps dispel the mythical numbers associated with the Games.
The IOC publishes on their website information as to where money is spent on hosting the Games, as well as money sent to International sports federations. You can view this finance source and revenue information here.
Financial numbers associated with the Olympics seem to take on an incorrect life of their own of their own when repeated often enough. Sometimes, the financial numbers are confused between price, expense, and cashflow as well as their impact to the local economy. Also, some people seem to accept any huge number presented to them, even if there is nothing to back up the number.
A large portion of the Olympics games income to the Tulsa region ($700 Million) is provided not by tax dollars, but by the International Olympic Committee, through TV broadcast revenue sharing, and marketing revenue sharing (via the TOPS program). Here is a link to an IOC document that spells out what revenue a winning Host City could receive: IOC Marketing Fact file.
Below is a list of the revenue a Host city has received from the IOC for past Games. This is revenue to the Host city from the IOC, not an expense to the city. These financial numbers came from the International Olympic Committee, from their Marketing Fact File. The financial numbers concerning Atlanta1996 came from page 222 of the Official Atlanta 1996 Olympics report.
Based upon the successful Atlanta1996 Games (adjusted for inflation), and data from the official IOC fact file on Games revenue, the Tulsa2024 Games could project to bring in Revenue to the Tulsa region of $2.035 Billion to $3.442 Billion. This is not a cost to the City of Tulsa, this is Revenue.
An example is: The two weeks of the Olympic Games is similar to having a two week state fair that costs $2 Million, where $2 Million in ticket sales offset the $2 Million cost of hosting the state fair. It is a $2M event, not a $2M expense to the city. The state fair did not cost the city $2M, rather is a $2M cashflow event to the local economy, and the $2M cashflow generates taxflow for the city. The State Fair did not cost the city $2 Million.
The cashflow event of hosting the Olympic games is similar to hosting a state fair, but on a larger scale. The Olympics, and state fairs are two week events. The Olympics is 28 sports, spread out over a two week period.
The Atlanta1996 games cost $1.7 Billion to host, however, that cost was offset with $1.7B in revenue. Atlanta1996 had $1.7B cashflow through the economy. The $1.7 B in revenue came from ticket sales, TV broadcast rights, and marketing rights, as well as merchandise sales.
Atlanta1996 posted a $19M profit. off of a $1.7B cashflow through the local economy, per page 222 of the Atlanta1996 official report. Tulsa2024 plans to copy the Atlanta1996 model of using the IOC revenue of TV rights, Marketing, and ticket sales to finance the Games.
Tulsa has two more venues than Atlanta1996 did during the same phase of the bid process. Atlanta had to build a tennis facility (near Stone Mountain, GA), and an equestrian facility (Near Conyers, GA). Tulsa has an existing equestrian facility at Expo Square, and the Case Tennis facility at the University of Tulsa.
Tulsa2024 would use existing Universities for the Olympic Villages. The University of Tulsa, and Oral Roberts University would become Olympic Villages. If hosting the Olympics could be a catalyst for adding dorms, new dorms built for the OU-Schusterman, Langston, and the OSU-Tulsa campuses could also become Olympic villages.
Tulsa’s non-OCOG expenses would include Olympic stadium construction, Olympic swimming pools, and a velodrome. Existing capital projects, which have already been targeted by the City of Tulsa, include Arkansas River low water dams, Tulsa Port of Catoosa expansion (for low water cruise ships, and post-games port capacity), and Gilcrease Expressway completion.
In Stillwater, OK, Oklahoma State University would become a satellite Olympic Village for Wrestling, Basketball, Soccer, and Judo)
In Central OK, the satellite Olympic Village would be at the University of Oklahoma. (Gymnastics, Soccer, Rowing).
In Edmond, OK at the University of Central Oklahoma, Archery and Volleyball would be held due to UCO currently being an Olympic training site. To reduce Olympic Village costs, a single Central OK satellite Olympic Village could be at the University of Oklahoma in Norman, however, this would require a 30 minute commute for athletes to UCO in Edmond, OK.
A light rail system has been planned for Tulsa. The light rail system would be a non-OCOG capital item. Hosting the Olympic Games could be a catalyst for the light rail system to be built.