Olympic Games Bring Joy & Debt
The Olympic Games will always turn the world’s eyes to a host city but they won’t necessarily bring gold to the city coffers, according to an Olympic scholar.
Except for the Los Angeles Olympics in 1984, cities — including Montreal and Athens — generally don’t make a profit hosting the Games, said Kevin Walmsley, co-director of the University of Western Ontario’s International Centre for Olympic Studies.
Most are left holding the bag, which for Vancouver could be an $875-million-plus debt for the Olympic Athletes Village. In Montreal’s case it was a $1.5-billion debt and a white elephant Olympic Stadium dubbed the Big Owe, which was built in 1976 for the Summer Olympics and just recently paid off.
It’s difficult to compare the two because the contracts, economic climates and even the value of the Canadian dollar are so different, Walmsley said. But both follow a common theme.
“The Olympic Games are not a profit generator and never have been,” he said. “What is always consistent is, there are always cost overruns.”
Take Athens, which hoped to shed its drab image and become a true tourist haven, but was left with a $17-billion US debt. Or Italy, where the national government helped bail out the 2006 Turin Winter Games by covering $159.11 million US of a $195.82 million shortfall.
Olympics watchers say Beijing’s bill will top $50 billion US.
Walmsley noted Athens proved the Olympics aren’t a way to regenerate a city. There also aren’t any guaranteed economic spinoffs. To reap any benefits, he said, cities have to work hard afterward to sell the brand.1
- Kelly Sinoski, Vancouver Sun – After the Olympics comes debt / via S.M. Oliva – Beautiful Gold, So-So Silver & Shameful Bronze [↩]
