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FrontPage arrow South Pacific Games 2007 arrow Expenses Greater Than Revenue during SPG
Expenses Greater Than Revenue during SPG PDF Print E-mail
Written by Astrid Sesega   
Monday, 08 October 2007
What the Government spent on building the South Pacific Games facilities has turned out to be a greater amount than what they received back as revenue.
In total during the South Pacific Games the Capital Expenditure on Venues including the schools was SAT100 million with the Government of the People’s Republic of China contributing SAT50 million of that amount.
However, revenue from the Games did not come close to what was spent with only around SAT$7 million received.
These figures were released at the Sports and the Pacific Region Conference held at the National University of Samoa this week.
Andrew Minogue from the South Pacific Games Organising Committee said that although the figures are low he doesn’t “think Samoa is doing too badly.”
He says he has worked on many different sporting events in the past including the Olympic Games in Sydney and it is not to uncommon to get back all money spent on building the complexes.
From the $7 million, sponsorship contributed to the majority of that amount totalling SAT$6.5 million and total ticket sales came to SAT383.00.
Merchandise Royalties also contributed a large amount ending up bringing in SAT$795,000 in revenue.
Minogue says there are now future challenges in order to help other countries increase their revenue when hosting the Pacific Games.
These include, Enhancing marketability and expanding television coverage, the cost of the television coverage to Samoa during the previous South Pacific Games was approximately, SAT42 million.
One initive that has already been put in place to help curb the expenses involved in the Games has come from the Pacific Games Council and that was a decision made to not allow any more than 28 sports hold competitions.
That number is five less than the number of events which were on offer this year.
It is believed that this will help to curb expenses because there will be less venues to build or renovate.
For the 2011 Pacific Games in New Caledonia, there will be twelve sports that are mandatory, these include Weightlifting, Swimming and Athletics and the Organising Committee will select a further sixteen sports to be included.
For the Mini Games only fifteen sports will be available.
Another way is to thoroughly look at venue usage for after the Games, Minogue pointed out that it is important to not only deliver great sporting venues but also enhance economic value.
He said that one of the reasons why London won the bid for the Olympics in 2012 over Paris was because of the economic value the sports facilities will bring to the country.
Another good example that Minogue mentioned was the use of Samoa’s Weightlifting facilities by the Oceania Weightlifting Federation, “it is a good example for other countries.”
“They are a model because they are not just using it as a games venue but for developing sports as well.”




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Comments (1)Add Comment
Television Rervenue
written by Ken, October 11, 2007
I am a bit puzzled in how the television broadcast rights did not bring $10 Million by itself.
Can someone who is in the know tell us how the palagi company who broadcast the games (SPG-07) got the bid and how much did they pay Samoa to get those rights. Since the games were televised throughout the region, I could not see why the tv broadcast company did not pay close to $10 million for broadcasting the games. Or did one of those palagi just walked in and bs their way thru and say they did this and did that..One of the problems is we do not have Samoans in position to manage such bids properly, therefore we ask outside expertise (to assist us in managing media accreditations and bids) that are usually paid by kickbacks by winnig bidders. Also, the television coverage (broadcast television contractors) was so poor and the camera angles was so amateurish. I read somewhere that some of these guys did Olympics or some sort of world games. If that is the level of competence or the lack of it, we should have just let TV Samoa do the coverage and sell tv rights to all who can do live broadcast including KVZKTV in American Samoa. I know a little bit about media coverage, I have worked in the Rugby World Cup, NFL games plus the Superbowl and have covered major USA college games. So when I saw the so called professional main tv-broadcast (from Australia/NZ) coverage I was disappointed. Our high (Hawaii) school live coverage of football is far superior and better than the best coverage they did in the SPG in Apia....Anyway, the success of the games for Samoa may not only be measured by money paid to the government. The financial gains by the private sector and small businesses and global exposure is more important. In that Samoa profit in the long run. Thanks to the govt and the people of Samoa...Aloha ..samoanmusicandvideo..com

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