Okay, in this segment let's look at the economics of the events and then also look at the media

rights fees so we can do a little bit of comparison and at least you can contemplate the, the rights fees that come from the Olympic games compared with the major team sports and leagues. So the revenue model for the Olympics A little bit different. A couple different elements that don't exist for teams sports. But some of the same. So television media rights. As broadly as we've talked about. Sponsorships. In some ways a bigger piece and one that's contemplated. to last a bit longer and more of a partnership sort of mode, ticket sales, and then, often, lottery and coin programs. Some countries don't allow lotteries related to this type of event. Some do. And most do print, er, print, er, do, do develop Olympic coins which actually sell quite well. So what's the cost of these events? We've looked at some numbers earlier, the most recent budgeted number, final number still. difficult to get your arms around. 13.3 billion for the 2012 London Olympics. So how does that compare with past games. Again, this is Olympic accounting numbers, grabbed as best we could from various sources. but, but here's an overview of how that number compares with Past expenditures and you can see it's a pretty wide range of numbers, but actually a pretty good jump from what it has been in past games, and we'll talk about, one that's not listed up there in, in just a moment. The, the one that I like to highlight is the LA games. Again, why is that number so low relative to the others? And one reason is, that, that the number, the Montreal number, which I have an asterisk by, because that's still been one of the most difficult to understand, in terms of the expenditures that were made. And it's also, the 1 that many people say, it's really where the Olympic games became problematic in terms of people

thinking about, in terms of cities thinking about, do we want to host these. We have missing in there, the 1980 games, where in Moscow, and very difficult, those games boycotted by the United States. Very difficult to ascertain what the numbers were there when the Moscow was a city within the Soviet Union and policies made it very difficult to, to uncover the economics. The 84 games were unique because at that point no one else wanted the games and when the bidding took place for the LA games the, the competition only one city was really involved in the bidding was Tehran and so Iran, and this was in the midst of the US Iranian hostage crisis. And, it was a difficult place to think about the games being hosted. So LA was really the lone option and LA, the organizers said, we will host these games provided we can try to run them profitably. And in that sense, we'll run this as a private enterprise. And we won't put governmental monies. Cities state and federal at risk. And this is really where two concepts came into play and I'll highlight them a little bit later but the key to keep that number so low and we'll talk about it a bit more was that new facilities were not constructed. And I highlighted to you the McDonald's summing pool in the Velodrome /g. Well those were exceptions, but they were constructed by sponsors. So, sponsor dollars were used for those and that's why the number is so much lower, because essentially what you did was paid for staff, you refurbished existing facilities where you needed to, but there is little new construction. that number for the London games, the $13 billion number, is so dramatic because so many new facilities in the success the Olympic Games has had, there's been competition for bidding for the games which didn't exist in 84. so now the competition and to be successful says you've gotta promise to build New facilities. So the TV rights have increased which make this construction of new facilities something that, that is much more feasible than it was again when, when the games were at their lowest point, post the Montreal Olympic Games. And you can think too of the tragedies

that happened before Montreal. If you think of the 68 Olympics mass student protest, in Mexico City the, the black power salute and the problems associated with the games. And then 1972, you think of the, the sad Munich massacre of the Israel athletes in the Olympic village. and then that led up to Montreal, the over expenditures, and then, and then the, the Moscow games. But here's a look at these numbers and see the dramatic increases that have, have occurred and this is for US rights fees alone. You can see the dramatic increase both the the lowest point But again if you look at the Los Angeles number, of two 25, one reason why that was so high. Because the games had not been in the United States since 1932. And the idea was that finally the games will be broadcast in prime time. The summer games will broadcast in primetime so it's worth that much more, but that also raised the bar. It's kind of hard to move back from a number once you get to a higher number and then you see the sole number at 300 million and the increases continuing from there. And you see if you go to the most recent numbers where we go to up to 20, 20 where we don't yet know where the games will be, the $1.43 billion, so these rights fees have increased incredibly in terms of what the networks are paying for the rights to broadcast the games. So, one of the concerns had been when NBC entered into a long-term Olympic broadcast deal that they wouldn't get their money back. That they, in fact, were relying on what we talked about. The value of the games in terms of stickiness. The value of the games in terms of providing an opportunity to broadcasters to, providing the opportunity for NBC to talk about their other shows, but also to have the stickiness in terms of keeping viewers on their network. Well they've, they ran into a surprise in the London games where they were predicting they would lose money. They actually were successful and they actually did meet their numbers. So again, this whole predictability of, are people overpaying for broadcast properties for sports properties of the

Olympic games, in this case, showed that it's hard to overpay. It can happen, but again, even though they thought they had, they ended up making their number. So, to recap, we've looked at the Olympic games in terms of the broadcast revenues and we've looked at the success that has occurred in terms of the broadcast numbers. And we looked at that in relation to where the games have been held. And the decisions that the very cities that have hosted games have made in terms of the types of facilities they will develop for the games. And then we, we begun to talk about how that will come into play in terms of where the entities that own the rights to these games, the International Olympic Committee. And again, you can think of the world cup and FIFA in the same way. How to be able to determine where the future games will be hosted.