Explore economic impact studies on sports events as a decision-making tool, focusing on the financial figures of mega events like MotoGP and the Marathon in Valencia. Delve into the positive or negative impacts, factors to consider, and the relevance of organizing such events. Discover how NPV, taxpayer decisions, and revenue generation play a crucial role in event organization.
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Presentation Transcript
Angel Barajas Ekaterinburg, 17th November 2017 ECONOMIC IMPACT STUDIES ON SPORTS EVENTS: A TOOL FOR DECISION-MAKING
General idea Basic ideas on Impact Analysis Relevant elements in sport events Financial figures about Mega Events (OG) Economic impact of MotoGP in Valencia Economic impact of Marathon in Valencia 15.05.2025 2
Sport events can have positive or negative impact. Decisions about organizing an event should consider: the features of the event and the features of the host city/region/country. Critical points: Investments Canon Limiting factors Intangibles mater but how to measure them? Ex- post studies 15.05.2025 3
Positive NPV is this the reason to organize an event? What if any other alternative investment provide a higher NPV? Tax payers could decide (referenda) Low level of taxes State own companies 15.05.2025 4
TV Audience (millions) 984 M xima Media 900 638 593 530 322 PEK N 2008 LONDRES 2012 SUD FRICA 2010 LLEGADA LUNA 15.05.2025 8
Revenues (millions $ year 2000) 3400 2700 2216 2146 2091 2043 1706 1302 1274 1118 MUNICH 1972 MONTREAL 1976 LOS SE L 1988 BARCELONA ATLANTA 1996 SIDNEY 2000 ATENAS 2004 PEK N 2008 LONDRES 2012 ANGELES 1984 1992 15.05.2025 9
Revenues and operative expenses for organizing committees (millions $ year 2000) 3400 3,117 2700 2520 2219 2149 2059 2162 1888 1793 1711 1523 1346 1310 1276 1117 664 656 531 476 MUNICH 1972 MONTREAL 1976 LOS SE L 1988 BARCELONA ATLANTA 1996 Costes operativos SIDNEY 2000 ATENAS 2004 PEK N 2008 LONDRES 2012 ANGELES 1984 1992 Ingresos 15.05.2025 10
Profit / Loss Olympic Games (millions $) 1047 745 654 641 542 381 326 192 266 3 0 57 0 240 22 283.3 MONTREAL 1976 MUNICH 1972 BARCELONA 1992 SE L 1988 ATLANTA 1996 ATENAS 2004 SIDNEY 2000 PEK N 2008 -80 LONDRES 2012 LOS ANGELES 1984 -45 -893 -2192 Sin inversiones Con inversiones 15.05.2025 11
Distribution of spectators' expenses MotoGPGrand Prix generate an increase of the GDP of some 27 mill. 0.24% of tourism in Valencia (80.000 visitors) Average Spending ( ) 76.20 104.59 45.12 30.82 23.00 395.00 40.30 62.80 46.38 Total Spending ( ) 5,106,022.37 3,445,304.41 3,277,890.15 1,807,713.09 36,325.74 1,960,687.32 1,946,021.65 1,416,929.39 606,933.13 Tickets Accommodation Food & Beverages Transport by road Transport by train Transport by air Merchandising Leisure Other expenses Economic impact from attendees to World Championship MotoGP (thousands ) Direct Indirect Inducted Total 7,438 278 8,317 391 18 16 15,694 685 421 13 Wages Companies' profit Taxes GDP Employments (persons) 3,191 10,907 7,383 16,090 221 10,697 27,077 142 256 575 15.05.2025 12
Valencia Marathon generate an impact of 6.5 million , 140 employments and a ROI of 3,2 (7,049 participants). National visitor Foreign visitor Average daily expenses Number of visitors Size of the group (persons) Days in the city Total expenses ( ) Source: Instituto Valenciano de Investigaciones Economicas, Maudos (2012) 94.8 4,081 2.3 111.7 2,248 3.4 4.2 2 2,112,276 3,578,003 15.05.2025 13
All that glitters is not gold. Economic impact analysis could help to improve the impact. Economic impact analysis should not be used to justify the organization of an event. 15.05.2025 14
Angel Barajas Ekaterinburg, 17th November 2017 ECONOMIC IMPACT STUDIES ON SPORTS EVENTS: A TOOL FOR DECISION-MAKING
