Historically Olympics originated from Greece and were a much practiced social event before the advent of modern era. Modernization has internationalized this amateur social event into a professional international games competition, where summer and winter sports are featured amongst more than 200 nations. The coming London Olympic Games 2012 are the highlight of every UK news channel nowadays, expected to start from 27th July 2012. Interestingly, this is not the first time for London to host World Olympics as it has successfully done so in 1908 and 1948 as well but London Olympic Games 2012 makes London the first city to host three international Olympics.
Being a World Olympic host country presents stronger connotations than meets the eye. Here we will discuss the financial impact of the London Olympics 2012 on the United Kingdom financial sector. Ideally the representative financial authorities of England, namely Cabinet Office, Department of Culture Media and Sports and the Olympic Security Directorate gather relevant data to gauge the financial impact of Olympics on the country's financial sector.
The host country of World Olympics is supposed to provide the physical and technical infrastructure, taken from its public money. Olympic Games are however, privately funded through sponsorships, ticketing, merchandising and media broadcast copyrights. So, while a control on public spending can be ensured, private spending is a free zone. Many medium and large multinational companies brand and co-brand Olympics' game wear and essentials. You can only imagine the impact these marketing strategies have on consumer buying power decision, directly affecting various financial segments in a country's overall financial sector. (more...)