The board of directors for the 2024 Olympics in Paris have approved a “balanced” budget for the games with less than two years to go until the start of the major sporting event.
The organizers have adopted a revised multi-year budget of €4.38 billion ($4.6 billion), which represents an increase of approximately 10%.
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The Paris 2024 board met yesterday (December 12) and made the announcement following the third budgetary review which the organizers stated is traditionally “the most important stage in the forecasting of income and expenditure linked to delivery of the event.”
The revised budget was set in close collaboration with the International Olympic Committee (IOC) and its stakeholders and was guided by the Paris 2024 audit committee.
The organizing committee said: “The adoption of this budget, which takes into account all identified changes in the cost of delivering the games, reinforces the project's ambition and preserves the means to cover risks, with a contingency reserve maintained at a protective level of €200 million. This budget enables Paris 2024 to move calmly into the operational delivery phase of the event.”
Paris 2024 claims it has already reached its target of securing 80% of revenues by the end of 2022.
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By GlobalDataThe organizers have increased their projected income from domestic partnerships due to “the advanced state of discussions with a number of companies.”
Estimated ticketing income is also higher than before as a result of “the combined effect of the competition schedule and venues being confirmed, as well as the work to optimize venue capacities carried out in close cooperation with the IOC.”
Paris 2024 has also followed its audit committee’s recommendation to generate more income from the most popular sessions without abandoning its accessibility policy (with €24 tickets available in all sports and almost half of tickets costing around €50 or less).
Following the announcement of more high-profile events linked to the Paralympic Games (such as the opening ceremony), public funding of the Paralympics has been increased by €71 million to a total of €171 million.
The French State (€44.5 million), the Métropole du Grand Paris (€15 million), the City of Paris (€5.6 million), and the Ile-de-France Region (€5.6 million) have all increased their support for the project.
In total, public authorities will contribute 4% to the financing of the Olympic and Paralympic Games (96% from private funding).
Paris 2024 claims it has reduced its projected expenditure by identifying numerous ways of cutting costs across all budget lines.
This includes by “streamlining the specifications of the games and by taking a series of measures relating to the competition and non-competition venues, temporary infrastructure and the scale of the ceremonies.”
Examples include reducing the number of days on which the Athletes’ Village, training venues, and competition venues will be operational and cutting unnecessary energy use at the competition venues.
In addition, the French State (€25 million) and the Métropole du Grand Paris (€15 million) will provide financial support for “certain investments in the French public interest that will contribute directly to the legacy of the Paris 2024 games.”
These include the purchase of sports equipment, financing of anti-doping equipment at the Université Paris-Saclay laboratory, and various development projects that will have post-games benefits.
The revised budget also takes into account all the key issues and risks identified by the organizing committee as the operational phase of games delivery draws near.
For example, the security budget, which had already been increased by 50% in the previous budgetary review, has been allocated an additional €25 million, while the cybersecurity budget has also seen a €10 million increase to take into account the relevant risks.
In order to address operational risks during the final 18 months of delivery, Paris 2024 has also decided to maintain its contingency provision of €200 million.
The 2024 Olympics will be staged from July 26 to August 11, while the Paralympics will take place between August 28 and September 8.
Image: Marc Piasecki/Getty Images
