Is it Worth It to Host the Olympics?

Success vs. Failure

Los Angeles 1984: The 1984 Los Angeles Olympics succeeded financially for a variety of reasons. By utilizing pre-existing sporting facilities in an athletically developed city, construction costs for the Olympic Games were radically reduced. Moreover, for the first time ever, these Olympics were organized without government funding, relying instead on private investment. As a result, the hosting rights committee of the Olympics in Los Angeles succeeded in landing numerous contracts from various firms eager to link their brand names with the prestigious sporting event. Held in a city of sports enthusiasts, tickets for many events sold out within seconds. The LAOOC capitalized on this demand by offering all kinds of official merchandise, ranging from apparel items to souvenirs. Finally, the committee ensured that most of the facilities would have post-Games use, and indeed, a large number of the venues remained in use for sporting events, concerts, and various community activities well after the Games. To sum up, the 1984 Los Angeles Olympics were economically successful due to existing facilities, a privately financed funding source, tight cost controls, robust ticket sales, a favorable environment, and effective post-Games planning.

Athens 2004: Conversely, the Athens 2004 Olympics were economically unsuccessful due to several factors, including the high construction costs of new venues and infrastructure, significant delays and inefficiencies in preparations that led to inflated expenses, and the underutilization or abandonment of facilities post-Games. The lack of long-term planning for Olympic infrastructure, coupled with the limited sustained economic benefits and substantial debt accumulation to finance the event, worsened Greece's financial strain and contributed to the country's broader economic crisis in the following years.

Will the 2024 Paris Olympics Be Successful?

When considering the factors that contribute to economically successful Olympic Games, we can predict whether the 2024 Paris Olympics will benefit the country. First of all, “Spending at the 2024 Paris Olympics is expected to come in at under $10 billion — only about 25% over the initial budget, according to an S&P Global Ratings report” (Geeter Darren, CNBC). Organized and efficient spending is one of the main factors in a profitable Olympic Games. Additionally, 95% of the venues being used existed prior to the Olympics, making the main spending point the Olympic Village. Therefore, with Paris poised to be one of the cheapest Olympics in history, the potential for profit is significant. Yet with obstacles such as group-led arson attacks and disruptions on France’s high-speed railways, only time will tell whether these Olympic Games will be deemed a success or failure.

Sources:
 

https://www.cnbc.com/2024/07/25/why-the-paris-olympics-cost-so-much-little.html#:~:text=Spending%20at%20the%202024%20 Paris,an%20S%26P%20Global%20Ratings%20report.

https://en.wikipedia.org/wiki/1984_Summer_Olympics?wprov=sfti1#

https://olympics.time.com/2012/07/09/amid-economic-turmoil-some-greeks-look-back-at-2004-olympics-as-losing-proposition/#:~:text=Greece's%20%E2%80%94%20and%20Europe's%20%E2%80%94%20financial%20instability,%2C%20poor%20planning%2C%20financial%20mismanagement.

https://www.cfr.org/olympics