The Paris 2024 Olympics began on July 26 with an opening ceremony on the banks of the River Seine and will conclude on August 11 at the Stade de France. The event promises to be grandiose, but it also brings with it a significant financial challenge. The Organizing Committee estimates an investment of €4.38 billion for the organization of the games, but when infrastructure costs and other expenses are added in, the total amount could exceed €9 billion (around US$9.78 billion or R$51.84 billion).
Sources of funding
Of the initial budget, 96% will be funded by the private sector, while 4% will come from public funding, mainly for the organization of the Paralympic Games. The main sources of income include contributions from the International Olympic Committee (IOC), ticket sales, hospitality, product licensing and partnerships. The event is expected to be financed by:
- IOC contribution: € 1,2 bilhão
- Ticket sales: €1.1 billion
- Partnerships and other income: € 1,22 bilhão
Public spending and infrastructure
In addition to the Organizing Committee's expenses, around €4.4 billion will be used by Solideo (Société de Livraison des Ouvrages Olympiques), the company responsible for building infrastructure and sports equipment, with a significant part of this amount financed by public funds. Recently, the president of the Court of Auditors, Pierre Moscovici, indicated that the costs to the public coffers could vary between €3 billion and €5 billion, reflecting a historical trend of budget overruns for Olympic events.
Comparison with previous Olympics
Historically, the Olympics have been known to exceed initially planned budgets. The London 2012 Olympic Games, for example, cost approximately US$14.9 billion, while the Rio 2016 Games reached US$13.7 billion. The Tokyo 2020 Games, held in 2021 due to the pandemic, reached a staggering $35 billion, which was not included in the Oxford University study due to its high cost.
Economic impacts
The Paris 2024 Games, while an opportunity to highlight France on the global stage, also represent an economic risk. The Standard and Poor's rating agency recently downgraded France's rating from AA to AA-, due to the deteriorating budget. France faces a growing public deficit, expected to reach 5.5% of GDP by 2023, higher than expected.
So while the Olympic Games may offer benefits in terms of tourism and visibility, the associated costs are considerable and must be managed with caution to avoid long-term economic impacts.
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