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

Finance Paper 2 - Essay ExampleThis allocation is mainly to meet the constitute of the games preparation. When the central funded component parts are included, the total cost to the public purse is estimated to be 9.3 billion pounds. The total budget of the London majestic organizing military commission who is straight off responsible for staging the games is estimated to be 2 billion pounds. This is for covering all operational be. These operational costs are go away 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 affect an undertaking that the government is the ultimate guarantor for funding the Olympic Games. The Olympic delivery authority which has been accomplished 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 billi on pounds only. All these budgets are financed by the national lottery which amounts to 2.2 billion, the GLA Olympic council measure 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 around three quarters of the required finance was collected by the committees (Berman). . The Olympic movement of the world consists of declamatory global multifaceted organizations with the IOC as its head. The IOC is not a governmental or United Nations organization. Initially the IOC which was drive by wealthy people funded the games from its own pocket. But the growth and popularity and increase in the value of transmit 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 Game s 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.