The Olympic Games are considered to be the world's foremost international sporting event with over 200 nations participating."Overview of Olympic Games". Encyclopædia Britannica. Retrieved 4 June 2008. It historically had the highest costs and expenses for the hosts, with the estimated cost of the 2016 Summer Games in Rio de Janeiro being at approximately US$11.1 billion.

Sports-related costs since 1960 have been on average US$5.2 billion for the Summer Games and US$393.1 million for the Winter Games. The highest recorded total cost was that of the 2014 Sochi Winter Olympics, costing approximately US$55 billion. The 2016 Rio de Janeiro Summer Games experienced the biggest loss recorded at approximately US$2 billion.

Host City Contract principles set by the International Olympic Committee require host cities, National Olympic Committees, and Organizing Committees to assume full financial responsibility for staging the Olympic Games. The contract also requires legally binding financial guarantees from host governments, making public authorities ultimately responsible for covering any financial shortfalls incurred by the Games.

Costs The current highest cost of hosting the Olympic Games was the 2016 Rio de Janeiro Summer Games, costing approximately US$11.1 billion. In order to meet the requirements set out by the International Olympic Committee (IOC), the Rio de Janeiro council had to invest heavily in building the necessary facilities/venues, and an entirely new subway line. The lack of a solid infrastructure to support these investments led to the council underestimating their costs by 25%.

The costs of hosting the Olympic Games can be classified into 2 categories: infrastructure and operational costs.

General infrastructure The costs of general infrastructure consist of preparing the necessary infrastructure to accommodate the influx of tourists and athletes in the host city. The International Olympic Committee requires a minimum of 40,000 hotel rooms available for visiting spectators and an Olympic Village that is able to house 15,000 athletes, referees, and officials.

Internal and external transportation facilities that can transport spectators into and out of the host city and from venue to venue are also required by the Committee. These requirements are often met through renovations to already-built facilities or construction of entirely new facilities. These facilities include train/subway lines, roads, and airports.

Sports infrastructure The host city is also required by the Olympic Committee to invest in sport-specific infrastructure that meets their requirements. Facilities must have specified minimum sizes and reach the specific seating and safety protocols which often require refurbishments or new construction, particularly less-used facilities such as natatoriums, velodromes and sliding tracks.

Host city selection The Winter Games require high mountains, especially for the alpine events. Traditionally, there were requirements of fairly short distance between the host city and the alpine slopes, which often has made smaller cities to be chosen as winter host cities, such as Lake Placid, Lillehammer and Sochi. After 2012 when no democratic country bid for the Winter Games due to the high cost, a larger distance was accepted, allowing existing slopes to be used together with a large host city with more existing infrastructure, for example Milan at a distance of 410 km by road to Cortina.

Operating costs Once the necessary infrastructure is put in place, the Olympics require a large amount of spending on operating costs throughout the duration of the Games. Historically, the most significant operating costs for the hosts have been in event management, organization and preparation of the opening and closing ceremonies, and increasingly in recent years, security.

Surplus distribution In the event that an Olympic Games organizing committee generates a financial surplus, the distribution of that surplus is typically governed by agreements between the International Olympic Committee (IOC), the local Organising Committee for the Olympic Games (OCOG), and the relevant National Olympic Committee (NOC). Following the Paris 2024 games, the Organising Committee reported a budget surplus after Games operations, and its agreement allocated portions of the surplus to the IOC, the French National Olympic and Sports Committee (CNOSF), and towards sports development programs in France rather than retaining the surplus for the host government or city.

Table The table below lists the costs of hosting the Olympic Games. Due to the multitude of reporting methods, the table contains both the operating costs and total final costs (which include various infrastructure upgrades and security costs), as well as both known and not estimated figures. Net loss or gain are measured against the operating budgets. Intangible costs (such as to the environment and society) and benefits (through tourism) are not included here. Olympiad Host Final OperatingBudget Total Costs Taxpayer Contribution Profit/Loss Notes Athens3,740,000 ₯Donations by George Averoff of 1,000,000 ₯ covered potential losses ParisUS$394,000 est. £6,377First & smallest known profit for an Olympic Games ₣3.5 million ₣2 millionFirst known loss for an Olympic Games CHF706,000 CHF104,800First & smallest known loss for a Winter Olympics$1.183 million $18,000Smallest known loss for an Olympic Games $1 million$30 million£761,688 £29,000Mk1.58 billion Mk49 millionlira 460 millionA£5.4 millionA£300,000US$80 millionUS$72 millionUS$1.926 billionUS$176 millionDM1.972 billionCDN$207 millionCDN$$1.596 billion CDN$990,000 A special tobacco tax was introduced in May 1976 to fund the loss. Debt paid off in 2006.US$49 millionUS$169 millionUS$231 million US$1.35 billionUS$2 billion US$1.19 million deficit The United States and 64 other nations boycotted due to the Soviet invasion of AfghanistanUS$55.4 millionUS$110.9 million US$1 million The first Olympics since 1948 to make a profit, and the first known Winter Olympics to make a profitUS$320 millionUS$413 million$75 million US$250 million. The first Summer Olympics since 1948 to make a profitCDN$438 millionCDN$899 millionCDN$425 millionCDN$32 million US$4 billion US$479 million Record profit for a government-run OlympiadUS$850 millionUS$9.3 billionFlyvbjerg, Bent; Allison Stewart (2012). "Olympic Proportions: Cost and Cost Overrun at the Olympics 1960-2012". Working Paper. Saïd Business School, University of Oxford. US$10 million Operating costs were put at 9.1% of the total cost. The vast majority of spending was to improve infrastructure.Brunet, Ferran (1995). An economic analysis of the Barcelona’92 Olympic Games: resources, financing and impacts". Working Paper. Universitat Autònoma de Barcelona US$1.2 billion (infrastructure) US$67 million US$1.1 billion US$250 million US$1.8 billion US$609 million US$19 million Following the model of LA 1984, Atlanta achieved a healthy profit ~US$10 billion (infrastructure) Net loss The full cost of the Nagano Olympics is unknown, due to Nagano Olympic Bid Committee vice-secretary general Sumikazu Yamaguchi ordering accounting documents to be burned. Debt paid off around 2015. A$6 billion A$3 billion (A$3.635 billion borne by the public) A$2.05 billion US$2.1 billion Largest loss from hosting a Summer Olympic GamesUS$2 billion US$1.2 billion US$600 million US$101 million Most profitable Winter Olympics. Additional security costs were incurred in the wake of the September 11 attacks. EUR€8.5 billion EUR€1.9 billion EUR€6 billion EUR€130 million (operational costs only) The cost of the 2004 Athens Summer Games has been cited as a contributor to the Greek government-debt crisis. IOBE study suggests that the Games increased Greece's GDP by 2.4%. Most venues of the Hellinikon Olympic Complex had limited post-Olympic use and were later demolished as part of the development of the Hellinikon Metropolitan Park. Venues of the Athens Olympic Sports Complex are still in use.US$700 million US$3.2 millionThe Italian government created a lottery game to cover its financial lossesUS$44 billion CNY 1 billion (US$146 million) CDN$ 1.7 billion (US$1.26 billion) US$ 6.4 billion US$ 2.3 billion CDN$ 1.9 million Included in the total US$6.4 billion cost are $1 billion for security, $2.5 billion for transportation extensions and upgrades, and $900 million for the new Vancouver Convention Centre. An additional $554 million was spent by the city including a portion on the Olympic Village. Debt paid off in 2014. £GBP8.92 billion US$16.3 billion GBP 9.3 billion GBP £nil Additional costs include $90 million for converting the Olympic Stadium (London) to a football venueUS$51 billion US$53.15 millionDownie, Andrew. "Sochi Winter Games made $53 million profit", Reuters, Rio De Janeiro, 27 February 2015. Retrieved on 28 August 2017.The most expensive Olympic Games in history, surpassing the previous record set by the 2008 Beijing Summer Olympic GamesWhy Sochi Is By Far The Most Expensive Olympics Ever ADAM TAYLOR, JAN. 17, 2014,US$13.1 billionUS$11.6 billion US$2.0 billionUS$2.19 billionUS$12.9 billion US$55 million"PYEONGCHANG 2018 ANNOUNCES SURPLUS OF AT LEAST USD 55 MILLION"US$15.4 billionUS$28 billionUS$3.9 billion US$52 millionBeijing Olympics Report $52 Million Profit, IOC To Donate $10.4 To Chinese Sport"US$8.2 billionEUR€5.96 billion EUR€76 millionThe first Summer Olympics since 2008 to make a profitUS$1.7 billion EUR€6 billion EUR€130-300 million (preliminary estimate)First Winter Olympics since 2006 to post a loss. Final report due Spring 2027.US$7.1 billionUS$500 millionThe city of Los Angeles and the state of California will each provide $250 million to cover possible shortfalls. The city's reserve would be spent first if needed. The Games overall are expected to be entirely funded by the private sector.US$2.3 billionPreliminary budget from the IOC's future host commissionUS$4.5 billionPreliminary budget from the IOC's future host commissionUS$3.9 billionPreliminary budget from the IOC's future host commission

See also List of megaprojects Olympic Games

References

External links What did Olympics bring Sydney