A report published by SportBusiness Group says that the cost to aspiring hosts bidding for sports events is higher than ever.
The report, Developing Successful Strategies in Sports Events Bidding, quotes London 2012’s bid budget at 29 million pounds, Sochi spent $60 million on its 2014 bid, and budgets for the 2016 Summer Olympic Games bidders are rumoured to be as high as $100 million.
The report says cities feel they need to achieve ever-higher technical standards and are investing more in public relations and marketing.
But the report shows the increasing value bidders get from competitions. Some of the benefits include the value of international PR and “place branding” which would in itself cost many millions of dollars to buy.
Also, former bidders in Olympic and other sports event competitions say that the process drove forward planning for sport and wider city infrastructure. It united diverse groups from planning, transport, regeneration and tourism as well as sport, around a common goal, and the benefit of the relationships made continue to be felt long after the result was announced.
According to the report the experience gained by a losing bid team can often help them succeed in future bids.
