Major Sports Events: The Challenge of Budgeting for the Venues
This research investigates the challenges of budgeting for the venues constructed for major sports events. It presents empirical data from three events, two of which experienced massive cost overruns. The venues used at the 2010 FIFA World Cup in South Africa and the 2011 FIS World Skiing Championship in Oslo, Norway, became 15.5 times and 17.5 times more expensive than the initial budgets, respectively. The 2012 FIS World Ski-Flying Championship, which was hosted in Vikersund, Norway, differed from them in that its final costs exceeded the initial budget by (only) 7.5%. One major reason for the cost overruns was the emphasis on other aims than constructing sports venues, after the award was made. Secondly, many of those who presented these aims operated as free riders who did not participate in funding the venues. Thirdly, the many volunteers involved in constructing the venue in Vikersund, which also included planning and preparations, significantly reduced the costs.
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Document Type: Research Article
Publication date: October 1, 2015
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- Event Management, an International Journal, intends to meet the research and analytic needs of a rapidly growing profession focused on events. This field has developed in size and impact globally to become a major business with numerous dedicated facilities, and a large-scale generator of tourism. The field encompasses meetings, conventions, festivals, expositions, sport and other special events. Event management is also of considerable importance to government agencies and not-for-profit organizations in a pursuit of a variety of goals, including fund-raising, the fostering of causes, and community development.