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February 09, 2014

Budget for the Rio 2016 Games is R$ 7 billion

Rio 2016 announced its budget for operational interventions in the staging of the Olympic and Paralympic Games
The first three stages of budget detailing for organisation related interventions for the staging, as well as legacy of the 2016 Rio Games, was presented last Thursday (23.01) at the headquarters of the Rio 2016 Organising Committee in Rio de Janeiro.  The next stage will take place on 28 January, when the Responsibility Matrix will be announced - a list with government projects delivered with public and private funding, and exclusively aimed at the staging of the Games.
The budget publicised by Rio 2016 refers to operational interventions under the charge of the Organising Committee, which refers particularly to the staging of the event. For instance, the meals provided to athletes at the Olympic Village, private security at the facilities, information technology made available at venues, transport and logistics from one venue to the other, among other necessary items for the Games. The current budget stands at R$ 7 billion.

According to the Committee, the sources are private and are divided between local sponsorship deals (51%), contribution from the International Olympic Committee – IOC (21%) -, ticket sales (13%), international sponsors (9%), licensing and other revenue types (6%).
According to data presented by the Committee, from the total of resources referring to this budget, 70% of them have already been secured. The other 30% will be raised and correspond to half of the local sponsorship deals, which are still being negotiated. In addition, according to the Committee, 100% of the resources from international sponsors, as well as the IOC have already been secured. In the case of sponsors, 40% of the resources correspond to funds transferred to the Committee, while 60% refers to products and services necessary for the Games.
The amount of R$ 4.2 billion, estimated in the bid book from 2008, has been updated by the National Consumer Index Price (IPCA) – official federal government index for measuring inflation targets, commissioned by the IMF since July/99 -, which varied 31.89% and thus resulted in R$ 5.5 billion.
According to the general director of the Rio 2026 Committee, some factors are considered a determinant in order for the budget to reach R$ 7 billion: the inclusion of four new sports (rugby, gold, paracanoe and paratriathlon) in the Olympic and Paralympic programmes, as well as technological evolution, security standards, wage rises and an increase in expenditures in relation to the Olympic Village. Levy explained that the budget is still subject to variables such as monetary rates, for example: “just like any jurisdiction, we'll have an annual budget review", he pointed out.
This Tuesday (28.01), the Responsibility Matrix for the Games will be published. The announcement will be made by the Olympic Public Authority (APO) in Rio de Janeiro. The plan for anticipating and increasing federal, state and municipal investments in public policies levered by the Rio 2016 Games will be announced by the federal, state and municipal administrations in March.

Some of Rio 2016’s operational figures
>> 4 million meals
>> 1 million sporting items
>> 80 thousand internet connection points
>> 5 thousand vehicles in the event's fleet
>> 832 Olympic and Paralympic events
By: Priscila Novaes, from Rio de Janeiro, especially for the Minister of Sport




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