The Financial Challenges of the Paris 2024 Olympics

The Paradox of the Paris Olympics: A Grand Vision Meets Budget Realities

Every city that hosts the Olympics aims to create an unforgettable spectacle, and Paris is no exception. The opening ceremony is designed to dazzle, featuring enchanting dance performances, athletes gracefully floating down the Seine, and a stunning show by none other than Celine Dion. Such extravagant displays have become a hallmark of the Games, attracting hundreds of thousands of spectators who fill the city’s bridges and riverbanks, eagerly anticipating the festivities.

However, Paris had a more understated ambition for these Olympics: to challenge the long-standing trend of exorbitant spending associated with hosting the Games. This ambition was particularly significant as Paris became the first city to fully test the cost-cutting reforms introduced by the International Olympic Committee (I.O.C.) in 2019. Yet, this vision of a budget-friendly Olympics appears to be slipping through their fingers.

The projected expenses for the Paris Games have skyrocketed to at least $8.87 billion. While this figure may not seem as staggering when compared to the $17 billion spent by London in 2012, the estimated $28 billion incurred by Tokyo in 2021, or the $24 billion that Rio de Janeiro faced in 2016 — the three most expensive Summer Games in history — it still exceeds the historical median cost of hosting the Games by over $1 billion, according to a study conducted by researchers at Oxford’s Said Business School, published in May. This amount is approximately 115 percent higher than Paris’s initial budget estimates.

In summary, the study concluded: This is not the budget-friendly Games that were promised.

Controlling expenses for host cities is crucial for the Olympics, especially as the Games have faced challenges in securing locations where local citizens have a say in the decision-making process. A recent vote by the I.O.C. awarded the 2030 Winter Games to the French Alps and the 2034 Winter Games to Salt Lake City, both of which were the sole candidates for their respective events.

Repurposing existing structures has not entirely resolved the budgeting dilemma of the Games. Paris’s central argument during its bid was that utilizing existing sporting venues would help mitigate the staggering capital costs that have burdened previous Olympic host cities, such as Athens and Rio de Janeiro. This approach was also intended to quell anti-Olympic sentiment within the host city. Similarly, Los Angeles, set to host the 2028 Summer Games, has pledged to avoid constructing new Olympic facilities.

Yet, while rehabilitating existing venues may present a more sustainable solution, adapting historical sites for Olympic events has proven to be a lengthy process, often incurring costs that remain undisclosed. A prime example is the Grand Palais, a magnificent 125-year-old iron and glass exhibition hall located in central Paris, which will host fencing and taekwondo competitions. The venue closed for renovations in March 2021 and is expected to remain shuttered for an extended period, prompting the city to build a temporary Grand Palais near the Eiffel Tower to accommodate the upcoming events.