Sochi 2014 today revealed an operational profit of 5 billion rubles (£85 million/$140 million/€102 million) following its hosting of the Winter Olympics and Paralympics earlier this year.
The Games Organising Committee received financial support from the Russian Government and also garnered income from merchandising, which in itself made a profit of between 1.5 and 2 billion rubles (£25 million-£34 million/$42 million-$56 million/€31 million-€41 million).
Government funding for Sochi 2014 – the most expensive Games in Olympic history – was estimated at around 13.6 billion rubles (£230 million/$382 million/€278 million) in December, when an extra 1.6 billion rubles (£27 million/$45 million/€33 million) in subsidies was revealed.
The remainder of the figure represents the value of the property owned by Sochi 2014.
The profit will be ploughed into the development of sport in Russia.
“The estimated operating profit which the Organising Committee received is in the region of 5 billion rubles (£85 million/$140 million/€102 million) and will go towards the development of mass sport in our country,” Dmitry Chernyshenko, President and chief executive of Sochi 2014, said.
“We may be proud for what we’ve achieved.
“The Games were commercially successful.”
Chernyshenko also revealed the internet domain name used for Sochi 2014 will be donated to Sochi city hall free of charge, while the Russian National Olympic Committee will manage other intellectual property from the Games.
The Sochi 2014 profit dwarfs the more than £30 million ($50 million/€36 million) surplus from the last Summer Games in London in 2012, while the last Winter Games – Vancouver 2010 – only broke even.
This article first appeared in www.insidethegames.biz and is reproduced with permission.