Jay Taylor
Supporting Actor
Actually they might even make a profit:
Cost-Sharing
Despite a jump in the Olympic spending, many believed the Beijing Games would not incur financial deficit.
A source close to the Olympic operation told the EO that market development earnings for the Games had exceeded expectations. He said the Beijing Games could have the potential of becoming "profitable".
It was learned that the Chinese government once thought of providing direct subsidies for the Games, but as market exploration and development gained momentum, the plan was dropped.
The EO learned that major sources of funding for the Games came from IOC appropriation, mainly drawn from telecast copyrights and the Olympic partner programme, which included sponsors like Coca-cola, General Electric Company, Johnson & Johnson, Kodak, McDonald's, and Lenovo China.
The above is from an Aug 4, 2008 report here:
Taking Stock of Beijing Olympic Finances
From the same link they also mention this:
However, one scholar who studies the economics of Olympics, said China was less concerned about profits or losses, he added best returns from the Games was to enhance China's international image.