“No host nation wishes to endure Greece’s fate,” remarks an article in The National as Paris 2024 Olympic Games unfold in the French capital. The specter of the 2004 Athens Olympics persistently haunts the international media, with growing worries about France’s fragile economy and its capacity to manage the multi-billion-dollar deficits typically associated with hosting the Olympics.
Amid high debt levels, sluggish economic growth, and rising costs due to inflation, France is carefully managing the financial challenges of hosting this year’s global sports event, hoping the Paris Olympics will break even or potentially yield a modest profit.
The work of organizing the Games begins years before the first athletes march with their flags and the throngs of fans arrive. From establishing numerous committees to managing an army of volunteers, constructing facilities, renovating sports infrastructure, securing international partners, and obtaining private sector funding, the list of tasks seems endless.
There are also tales of how the celebration can end bitterly. Greece is often cited, with The National stating that the country was “devastated after hosting the Olympics.” The Council on Foreign Relations highlights that economists stress the importance of accounting for the hidden costs of the Games. These include the opportunity cost of public funds that could have been spent on other priorities.
Servicing the post-Games debt can strain public budgets for decades. Montreal took until 2006 to pay off its debt from the 1976 Games, while Greece’s billions in Olympic debt contributed to its financial collapse.
One must also consider the fate of major projects once the Olympics conclude. Stadiums and cutting-edge sports facilities often fall into disrepair, a situation exemplified, though not exclusively, by Greece.
The Council on Foreign Relations highlights the financial burden of maintaining Olympic venues. Sydney’s Olympic stadium costs the city $30 million annually for upkeep. Beijing’s ‘Bird’s Nest’ stadium, built for $460 million, requires $10 million a year for maintenance and was mostly unused until being repurposed for the 2022 Winter Olympics.
Meanwhile, many facilities from the 2004 Athens Olympics, which contributed to Greece’s debt crisis, are now abandoned.
In almost all cases, the initial budget has been exceeded. The cost of the Beijing Games reached $52.7 billion, Tokyo $35 billion, Athens $18.7 billion, London $13.3 billion, and Rio de Janeiro $13 billion, according to S&P Global. The Paris Olympics have already exceeded their initial budget by 25%.
