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≡ OLYMPIC GAMES 2024 ≡
The Paris 2024 organizing committee reported to its board on Thursday that its seven-year effort to stage the Olympic and Paralympic Games ended with a modest financial surplus.
The initial summary reports indicate that the organizing committee ended with a surplus of about €26.8 million, or about $28.1 million U.S., thanks to strong ticket sales revenues.
There were three primary revenue drivers (€1 = $1.05 U.S.):
● €1.489 billion: tickets and hospitality
● €1.238 billion: domestic sponsorships
● €1.228 billion: International Olympic Committee contribution
● €204.1 million: Public funds (for Paralympics)
The total was €4.480 billion, or 1.3% higher than the €4.397 expected at the last budget check in March of this year. The ticketing and hospitality sales were remarkable with a record total of about 12.1 million tickets sold, and an outstanding 17.2% rise over the €1.270 billion target.
(Ticket sales were €1.333 billion with another €156 million from hospitality sales.)
The organizing committee’s costs came to €4.453 billion vs. an expectation of €4.397 billion in March, and so there was €26.8 million left over from the organizing committee’s side.
These figures do not include the state funding for building projects, handled by the SOLIDEO government subsidiary, of €3.2 billion, which was sufficient to complete all of the projects on time. However, additional public support for a deficit – of about €30 million – will now not be needed.
The split of the €26.8 million surplus is to go three ways according to the agreement with the IOC:
● 60% or €16.08 million for sports programs in France
● 20% or €5.36 million to the CNOSF (National Olympic Committee)
● 20% or €5.36 million to the IOC
The Paris 2024 report pointed out that the costs had risen since the bid projections had been made in 2016, but revenues increased even more (dollar amounts shown from the IOC evaluation report):
● $3.964 billion in bid revenue projections
● $4.704 billion actual revenue: +18.7%
● $3.964 billion in bid expense projections
● $4.676 billion in actual expense: +17.9%
Paris 2024 finance director Patrice Lacroix explained that the increase in expenses from the bid was due to multiple factors, including staging the opening on the Seine River, the addition of four sports and the nation-wide promotional campaign “Terre des Jeux” and … inflation. Lacroix said, “From 2023, the shock was enormous; between 300 and 400 million euros.”
With the financial surplus reported – the ultimate happy ending – Paris 2024 organizing committee chief Tony Estanguet announced his resignation, and will take a well-earned rest. The organizing committee itself will wind up in mid-2025, after the settlement of all accounts, distribution of materials and the assembly of its official report.
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