It's amazing how humans have become so passionate about developing their physical abilities that we've created advanced sport disciplines that are worth professionalizing.
This passion has led to organizing sporting events where the best athletes from each country compete to determine who has the top competitors.
Ideally, sports should be the only way nations engage in conflicts.
These competitions are called the Olympics, and they have such a rich history that we have both the modern Olympic Games, as we know them, and the ancient Olympic Games, which were religious celebrations in honor of the Greek god Zeus.
Today, the professionalization of sports, the large number of athletes, and the media and community attention have turned this spectacle into a significant business that truly moves money.
Let's take a financial look at the Paris 2024 Olympic Games, the latest edition of this athletic event.
How much did the Paris 2024 Olympics cost?
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Financial projections estimate that this edition will be the least expensive since Sydney 2000, with an estimated cost of $9.6 billion, while Sydney's costs were a little over $5 billion.
The economic impact is expected to range between $7.4 and $12 billion, something Emmanuel Macron is keen on seeing for the sake of his popularity.
How were the Paris 2024 Olympics funded?
Where did the $7.4 to $12 billion come from? Estimates show the following percentages by source:
- 42% from the organizing committee
- 30% from tourism
- 28% from construction-related activities
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Tourism
Tourism generates impressive figures, with approximately 11.5 million visitors expected to bring in around $2.8 billion.
Does France have that much money?
France is known for many things: exquisite cheeses, a passion for baguettes, iconic architectural landmarks like the Eiffel Tower and Notre-Dame Cathedral, and interesting geographical trivia such as its longest border being not with Germany or Belgium, but with Brazil due to French Guiana.
But where did France get the money to pay for the Olympics?
France also has debt. According to the International Olympic Committee (IOC) and the Paris Tourism Office, France relied on private funding for organizing the Olympic Games, amounting to approximately $7.6 billion, of which about $3.2 billion was allocated for the construction and renovation of stadiums and other infrastructure.
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This investment allows approximately 500 local companies and 180,000 Parisian employees to benefit from the economic boost associated with tourism during such events.
Athletics paid with gold & cash
The IOC will contribute financially as well.
For the first time in history, Olympic winners received not only glory and gold but also a substantial monetary reward.
Athletes participating in the 48 disciplines that make up the athletics category received a $50,000 deposit for winning gold.
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How do athletes make money?
Sports commissions in each country provide financial support to their Olympic athletes, enabling them to concentrate on improving their physical and mental abilities.
Do brands sponsor athletes?
Athletes become famous and successful, embodying the pinnacle of dedication and discipline. This recognition is valuable, and brands understand its worth.
Energy drinks, sportswear and accessory companies, television networks, and various brands recognize that athletes become a focal point for showcasing their products, leading to additional income from sponsorships.
Does the International Olympic Committee profit from athletes?
The IOC is not a profit-driven organization but aims to promote professional sports worldwide.
Approximately 90% of its income is distributed to the National Sports Commissions of each country.
For perspective, the IOC allocates an equivalent of $4.2 million daily to promote sports globally, distributing funds to National Commissions to best support their athletes.
How does the U.S benefit from the International Olympic Committee?
In the United States, the organization responsible for promoting and funding sports and athletes is the United States Olympic & Paralympic Committee (USOPC).
The medals won by our athletes are their medals too.
Let's enjoy the Olympics, a beautiful and sporadic event that reminds us of the importance of sports in keeping our bodies healthy, our minds focused, and our spirits competitive.
And along the way, we might even make some money in the process.
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