Olympics

When hosting an event as large as the Olympic games there will always have to be a variety of stakeholders whom hold various financial risks, as well as the potential to receive benefits from investing in the event. One specific genre of stakeholder is the different media outlets. The current media outlet for the Olympic games that hold exclusive presentation rights is NBC and they have extended their contract all the way until the year 2020. NBC paid 4.4 billion to have these privileges and they have to look at their opportunity costs because they could have spent that money elsewhere, but NBC decided that yes the benefits exceed the risks taken on spending that 4.4 billion. Their basic reasoning in deciding if they spent the money on the correct things was by using the three profit lenses, which include Audience, Time and Interest. Spending 4.4 billion dollars wasn’t the only risk that this media outlet had to think about, they also had to deal with other issues such as all the criticism’s that NBC incurred from giving their coverage. One specific criticism was with the opening ceremony being shown on our primetime and not when it was actually happening in London. So many people were seeing various tweets and comments from it and were upset that they didn’t get to see it as it was actually happening. Overall NBC as a stakeholder chose to do this because they want to reach and extend to the biggest audience as possible thru multiple different channels i.e: TV, online, mobile phones, tablet PC’s ect. Despite all the criticism’s NBC is expected to break even and much of their costs were actually taken care of by other stakeholders (corporate sponsors), which paid NBC lots of money to have things like commercial and advertising schemes during the games.