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