The cost of staging the year 2000 Olympics in Sydney is estimated to be a staggering ＄ 960 million, but 61) {{U}}the city is preparing to reap the financial benefits that come from holding such an international event by equaling the commercial success of Los Angeles, the only city yet to have made a demonstrable profit from the Games in 1984.{{/U}} At precisely 4:20 a.m. on Friday the 24th of September 1993, it was announced that Sydney had beaten five other competing cities around the world, and Australians everywhere, not only Sydneysiders, were justifiably proud of the result. 62) {{U}}But, if Sydney had lost the bid, would the taxpayers of New South Wales and of Australia have approved of governments spending millions of dollars in a failed and costly exercise?{{/U}}
There may have been some consolation in the fact that the bid came in ＄ 1 million below the revised budget and ＄ 5 million below the original budget of ＄ 29 million formulated in mid-1991. However, the final cost was the considerable sum of ＄ 24 million, the bulk of which was paid for by corporate and community contributions, merchandising, licensing, and the proceeds of lotteries, with the NSW Government, which had originally been willing to spend up to ＄ 10 million, contributing some ＄ 2 million. 63){{U}}The Federal Government's grant of ＄ 5 million meant, in effect, that the Sydney bid was financed by every Australian taxpayer.{{/U}}
Prior to the announcement of the winning city, there was considerable debate about the wisdom of taking financial risks of this kind at a time of economic recession. 64) {{U}}Others argued that 70% of the facilities were already in place, and all were on government-owned land, removing some potential areas of conflict which troubled previous Olympic bidders.{{/U}} The former NSW Premier, Mr. Nick Greiner, went on record as saying that the advantage of having the Games... "is not that you are going to have ＄ 7.4 billion in extra gross domestic product over the next 14 years." 65) {{U}}I think the real point is the psychological change, the gaining of confidence, apart from the other more obvious reasons, such as the building of sporting facilities, tourism, and things of that nature.{{/U}}