The Olympics are prestigious but are currently plagued by overspending, waste, and controversy.
Issues include lasting damage to host cities and significant financial overruns.
Example: Sochi Winter Games (2014) exceeded its budget by $41 billion.
Observation by Professor Andrew Zimbalist, expert and author on Olympic economics.
Costs and Requirements
Hosting requires 35 athletic venues, an Olympic village, media production facilities, media village, ceremonial and green spaces, transportation among all sites.
Olympic villages cost between $1.5 to $3 billion.
Media and television productions cost between $0.5 to $1 billion.
Revenue Issues
Early Olympics earned considerable revenue from TV rights.
IOC's share of TV revenue has increased significantly (4% in 1990s to 70% in 2016).
Maintenance of new stadiums costs up to $30 million/year and contributes to urban decay and lowered property values when not maintained.
Environmental concerns: e.g., PyeongChang Winter Olympics required destruction of a mountainside.
Declining Interest in Hosting
Fewer cities bid to host due to financial burdens.
Example: Chicago spent $100 million on its 2016 bid and lost; Boston withdrew its bid for 2024.
Bids have decreased over the years: 12 bids for 2004, 5 for 2020, 2 for 2022 (China and Kazakhstan).
IOC's Response and Future Prospects
IOC President Thomas Bach's agenda in 2014 for sustainability and reducing bidding costs.
Reforms are in progress, but effectiveness remains uncertain.
Alternative Proposal: Permanent Host
Professor Zimbalist's idea: eliminate bidding and have a permanent host city with existing facilities and infrastructure, e.g., Los Angeles for Summer Olympics.
Benefits of a permanent Winter Games host, considering climate change and reliable snow availability.
Potential Future Hosts
Future Games planned through 2028 (Summer) and 2022 (Winter).
Bidding interest for upcoming games includes Salt Lake City, Sapporo, Germany, Australia, and India.
Conclusion
Despite flaws, the Olympics remain popular.
The IOC remains responsible for addressing financial and logistical challenges to preserve the tradition.