The forthcoming 2024 Paris Games, scheduled to take place from July 26 to Aug. 11, are aspiring to establish a new benchmark for future host cities in terms of their financial strategies and innovations. This article will delve deeper into the revenue generation and economic legacy of the Games, as well as the measures being taken by the Paris Games organizing committee to ensure fiscal responsibility.
Revenue for the Olympics principally emanates from two sources: the local organizing committee, in this instance, the 2024 Paris Games, and the International Olympic Committee (IOC). The most recent Summer Games in Tokyo saw the IOC receive a total of $7.6 billion between 2017-2020/2021, with media broadcasting rights constituting 61% of revenues and the Olympic Partner (TOP) corporate sponsorship program accounting for 30%.
The TOP program, which was initiated in the 1980s, has displayed substantial growth, with revenues escalating from under $300 million to $2.3 billion over the years. The program, initially consisting of five partners, currently boasts 15, including Atos, Airbnb, Alibaba, and Intel.
For the 2024 Paris Games, the primary sources of income for the local committee encompass domestic sponsorships, ticketing, licensing within the host country, hospitality, and merchandising. As IOC revenues increase, local organizers also receive a larger share of that pot. Paris is set to receive $1.7 billion for this edition, while the 2028 Los Angeles Games and the 2032 Brisbane Games are earmarked for $1.8 billion each.
In addition to the IOC and local organizing committee revenues, each of the 206 National Olympic Committees (NOCs) globally and the numerous International Federations (IF) for specific sports also generate their own incomes. The IOC allocates a significant portion of its revenues through a solidarity program to local organizing committees, the NOCs, IFs, and other relevant sports promotion initiatives.
However, the financial aspect of the Olympics is not solely about revenue. An independent study has suggested that the Paris Games will ultimately generate between $7.3 billion to $12.1 billion for the city and the surrounding Île de France region between 2018-2034. Anticipated gains are expected to arise from tourism, construction, and the organization of the games. Nevertheless, there are apprehensions regarding potential negative impacts on existing businesses and tourism.
The notion of crowding out, wherein sports tourists may displace other visitors, stands as one of the main contentions against the economic benefits of the Olympics. However, the IOC maintains that this phenomenon is already taken into account in studies demonstrating broader benefits. Despite this, the economic legacy of the Games can extend beyond just financial gains, as the Olympics are fundamentally designed to promote values and unity.
In summary, the financial success of the 2024 Paris Games remains to be observed. While revenue generation and economic legacy are pivotal, the genuine impact of the Olympics transcends mere financial gains. As preparations for the Games continue, the world will keenly observe whether the Paris Olympics can achieve financial triumph while also upholding the values of the Olympic spirit.