Is The Olympics A Waste Of Money?

The Olympics is not only the biggest, most prestigious sports event for athletes and fans but also a business opportunity for nations. Sponsors do not support the event out of kindness but because it is an extremely effective advertising tool. However, it is much more than that. Let’s see both sides of the story. Is the Olympics a waste of money or not?

Does the Sporting Event Hurt the Nation?

It is possible to profit from the Olympics, but spending millions of dollars on an Olympic bid and application, then losing is the surest way to waste public money. Recently, most countries don’t want to go through the expensive application procedure, so the IOC is trying to work on a plan everyone accepts. Public opinion and protest are a couple of reasons why it’s so challenging to find venues for the Olympics. In a short period, hosting the Games went from a privilege to a burden. For instance, only eight candidates applied for the 2010 and 2014 Winter Olympics. By 2016, only seven cities signed up. There were five candidates for the 2020 Games, and it was even harder to find a place for the 2022 Winter Olympics. In Krakow, they stepped back due to the local popular vote. The city administration in Stockholm also pulled out because of the unpopularity of the idea, and Norway backed out when not even a third of the population supported the idea of being hosts.  For the 2024 Games, the applications failed one after the other. Boston did not even submit its own despite its plans since the idea was so unpopular, and it was not the only country that withdrew, leaving only a few candidates. The most significant reason for the growing dislike is, of course, money. The budget for the Summer Olympics exceeded five billion dollars in 2004 and the Winter Olympics in 2010. Obviously, the amount has increased since then, and they say that the Olympics played a massive role in the Greek financial crisis.

Is the Olympics a Waste of Money?

The supporters of the Olympics usually bring up that the event brings a series of infrastructural investments that are good for the city and country in the long run. However, experience shows that they have to expand the infrastructure to such an extent due to the thousands of athletes, crew members, media staff, and fans that they can use only a relatively small part of it after all these people leave. Not to mention that each host wants to put the bar higher than the others. This also means more expenses, leading to the question: is the Olympics a waste of money? The other main argument of the supporters is valid with a few exceptions. The number of tourists will indeed increase for years to come, and there is probably nothing else that could draw the world’s attention to a city for two and a half weeks so effectively. To help the countries, the IOC came up with the idea that they would choose and negotiate with the potential hosts, where only a few new investments are needed. We will see whether it’s a successful plan after the 2024 and 2028 Olympics. 

However, in any case, despite the fact that the Tokyo organizers promised a budget of 7,3 billion dollars, they spent about four times that amount. Though, if they could eliminate this budget problem, the expensive application would still remain, and that is why the IOC picks a country. Since the application process was an additional cost with no benefit, it was a waste of money. On the other hand, the competitors, who you can check out at 22Bet, work hard to be there, so they need to find a solution for future Games! Here you can take a look at the most epic Winter Olympic Games ever! 

How to Go On?

The organizers and IOC have several options for future Games, but all of them would require considerable changes. The most likely scenarios seem to be that they realize that giving only one city the right to host is not the best idea. They have already accepted joint applications for the 2026 Winter Olympics. Several cities of a country or even cities of neighboring countries could apply together to half the expenses. The rules do not allow this yet, but these alternatives might be worth considering. There is another helpful idea, which suggests that they assign a permanent location, as they did for the ancient Olympics, but due to marketing, there is little chance of this. The third option is that they assign the rights in blocks. For example, they recruit applicants for the 2036-2040-2044 events in a way that those who do not win in the first round get the right to host four or eight years later. So far, organizing the Olympics seems like a waste of money, at least for the most part.

Is the Olympics a Waste of Money?

Have you ever thought about the fate of the Olympic facilities built by the organizing country? In the last century, hosting the Summer Olympics was profitable only a few times. In most cases, the tracks and stadiums are no longer in use.

The organizers just left them there. They are proof of what a waste of money the Olympics are. Eventually, nature will reclaim the insanely expensive facilities. You can check out these desolate places at online sportsbook sites in the UK!

On a More Positive Note

Is the Olympics a waste of money? People are torn about this question. It is not surprising since a significant number of the past Games were unprofitable for the hosts. However, according to online sportsbook sites in the UK, it is not necessarily the only outcome. They use the Olympic facilities for a little while, then they remain unused. The places need a makeover and a new purpose. It would save a lot of money if the organizers designed the Olympic facilities considering their future potential. According to research, hosting the Olympics will cost at least ten billion dollars. One of the cheapest Games was the 1964 Summer and Winter Games with 282 million dollars and 22 million dollars. The Atlanta Olympics with 3,6 billion is also among them. While the most expensive ones were the 2014 Sochi Games, with more than 53 billion dollars, and the final price tag was around 15 billion dollars in Tokyo. Although the politicians and the organizers usually overestimate the income. They claim that the Olympics bring significant economic benefits, and the enormous organizing costs can be covered in most cases. The hosting city earns approximately four billion dollars from ticket revenues, sponsorship advertisements, and broadcasting rights. Of course, other sectors also benefit, but it is often overestimated. For instance, during the London Olympics, there were fewer tourists in the city than in the same period in previous years, interfering with their calculations. 

Is the Olympics a Waste of Money

Nevertheless, experts believe that with careful planning it is worth organizing the sporting event. Olympic events create jobs and promote economic growth. In less popular tourist destinations, tourism can also be significantly increased. For the world-famous cities, the Olympic Games do not mean a significant financial advantage. However, the most important thing is that the event will end with no losses to the host.  For example, the 1984 Los Angeles Games, which the Eastern Bloc boycotted, were only profitable because they used existing facilities instead of luxurious new ones. Finally, if the Olympics have already been organized in a city, it is advisable to apply again. The organization process could be much cheaper the second time around, thus becoming more profitable. Since we know the next venue, you can check out more details and odds at 22Bet!

Conclusions

In the short term, the GDP rate of the regions serving as the venue for the Summer Olympics may increase compared to the value the year before and after the event. These effects also occur in the long run, but there is no clear connection between this data and the Olympics. In contrast, studies have shown that the Winter Games did not have the same effect on the Olympic regions in the past. Instead of increasing, the GDP in the area temporarily declines in the coming years.   So based on the statistics, you can see that it is impossible to know in advance whether the organization of the Olympics will have a beneficial effect on the hosts or the economy of the given countries or not. However, there is no doubt that it is crucial to utilize the finished facilities and infrastructure even after the Olympics and to integrate it into the country’s economy. Otherwise, the cost will not return, and the Olympics will be a waste of money!

Click here to try 100% up to €100 bonus at 22bet Sportsbook