Aug 7, 2024
By: Prerna Tyagi
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Organising the Olympics is an enormous financial venture, with costs that can vary significantly based on factors such as the host city, the scale of the Games, and the type of infrastructure required. Here’s a detailed breakdown:
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Cities spend between $50 million and $100 million to prepare and submit a bid. This includes costs for consulting, travel, and promotional events.Tokyo spent $150 million on its unsuccessful 2016 bid and about $75 million on its successful 2020 bid.
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Building or upgrading sports venues, including stadiums, arenas, and Olympic Villages make up a significant part of the total budget. The 2008 Beijing Olympics saw significant spending on rail, roads, and airports, with over $20 billion allocated to infrastructure improvements.
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Hosting the Summer Olympics can cost between $5 billion and $50 billion, depending on the city’s needs and the scale of the Games. The Winter Olympics are generally less expensive, but still significant, with costs ranging from $2 billion to $10 billion.
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Rio 2016 cost approximately $13 billion, with costs related to facility construction and general city infrastructure improvements. The budget for the 2020 Tokyo Olympics was around $15.4 billion, including costs associated with pandemic-related postponements.
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Almost all (96 per cent) of the budget to organise the Paris 2024 Olympic and Paralympic Games comes from the private sector, namely the IOC, partner companies, the Games ticket office, and licensing. Public funding comprised the rest (4%), covering areas like the Paralympics and specific local infrastructure improvements.
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The 1976 Summer Olympics’ projected cost of $124 million was billions below the actual cost, saddling the city’s taxpayers with some $1.5 billion in debt that took nearly three decades to pay off. Tokyo 2020 had a 128% budget overrun.
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They are expensive facilities that, because of their size or specialised nature, have limited post-Olympics use. These often impose costs for years to come. Sydney’s Olympic stadium costs the city $30 million annually. Almost all of the facilities built for the 2004 Athens Olympics, whose costs contributed to the Greek debt crisis, are now derelict.
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The International Olympic Committee generates substantial revenue from broadcasting and marketing rights. 90% of the revenues from the games go straight back into sports and athlete development. It provides financial assistance and logistical support to help reduce the financial burden on host cities.
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Many cities use the Olympics as a catalyst for urban redevelopment and infrastructure improvements. Some cities experience a boost in tourism and business opportunities, though the overall economic impact is complex and varies.
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