Business Breakdowns Olympic Games: The Price of Glory - [Business Breakdowns, EP.176]
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Jul 31, 2024 
Andrew Zimbalist, an Economics Professor at Smith College, delves into the financial burdens facing host cities like Paris, which is spending $9 billion for the 2024 Olympics while expecting minimal revenue in return. He highlights the changing bidding process and the challenges cities encounter, including budget overruns and logistical hurdles, especially in Brisbane. Zimbalist also proposes sustainable solutions, such as a single permanent site for the Games, while questioning the long-term viability of this grand sporting tradition.
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Denver and LA Olympics
- The 1976 Winter Olympics were awarded to Denver, but residents voted it down due to cost and environmental concerns.
- Los Angeles then hosted the 1984 games and generated a surplus by leveraging existing infrastructure and a new sponsorship model.
Dual Olympic Award
- Escalating costs and declining interest forced the IOC to award two consecutive games (2024 and 2028) at once to Paris and Los Angeles.
- This unprecedented move highlights the increasing financial burden on host cities and the IOC's struggle to find willing bidders.
Prioritize City Needs
- Cities should make the Olympics fit into their pre-existing development plans, not the other way around.
- Barcelona successfully used the 1992 games to advance urban renewal projects, leveraging Olympic resources for city improvements.