It was a challenge “extremely important” according to Tony Estanguet. “We wanted to organize the most beautiful and spectacular Olympic Games. But without forgetting the need to aim for a balanced budget,” recalls the president of Cojo. The Games were not over at the end of August, which he was already covering for Ouest-France: “have kept the budget” specifying “we will know the very precise budget at the end. » Here we are.
The organizing committee for the Paris 2024 Olympic Games ensures that “the final budget is in surplus by at least 26.8 million euros”declared Fabrice Lacroix, Administrative and Financial Director of the committee, during a press conference. ” At least “because it could increase further. “We are still in the process of closing all contracts or removing provisions made over time. »
As a reminder, the overall budget for the Games rested on two legs. On the one hand, the Solidéo budget (4.4 billion euros) financed the rare Olympic sites built. On the other hand, that of Cojo (4.45 billion) was 96% based on private financing thanks mainly to private money from sponsors (1.24 billion), the International Olympic Committee (1.2 billion) and ticketing (1.49 billion). This is what we are talking about today.
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Cost increases compensated
To achieve this feat that no other host country of the Olympic Games has achieved before Paris, the organizers worked hard to go “earn every expense”. They also benefited from the success of the Games which had a positive effect on revenues.
On the expenditure side, however, the organizers had to deal with an increase of 17%. On the podium of bad budgetary surprises: inflation. “An increase between 300 and 400 million euros on the cost of the project” believes Fabrice Lacroix. Security also cost more than expected to the tune of 100 million, and even 120 million including cybersecurity. “It was inevitable given the evolution of the threat since our application file”specifies Tony Estanguet.
As a reminder, in 2015, the application budget amounted to 3.2 billion euros. Ultimately the expenditure amounts to 4.454 billion euros. The delta between the final budget and that of the candidacy is not explained only by an increase in unforeseen expenses but rather by a tendency of candidate cities to minimize costs at the start to convince the IOC to be awarded the Games.
After Atlanta in 1996 and Sydney in 2000, Paris should nevertheless be the city which sees its budget soar the least. Other budgetary developments are linked “at our choice” recognizes Tony Estanguet. Like the choice of opening ceremonies in the city (154 million euros for the four ceremonies) or even the addition of sports.
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More revenue than expected
On the revenue side, they stand at 4.481 billion euros. That’s an 18% increase in the budget. To compensate for this increase, the organizers knocked on the doors of private partners for 91% of additional expenses. Thus, private sponsors contributed a total of 1.24 billion. Or 150 million euros more than the initial projection “while these amounts already seemed ambitious to us” reveals Fabrice Lacroix.
On the other hand, regarding the financing of the Paralympic Games, the organizers had requested an extension from the State, increasing the subsidy from 100 to 204.1 million euros.
The success of the Olympic and Paralympic Games resulted in the sale of a record number of tickets: 12.1 million. Ticketing therefore generated 1.333 billion euros in revenue, “ i.e. 87 million more than the budget voted in December 2023. And 261 million euros more than planned in the application budget”specifies the financial manager.
Added to this are 155 million euros linked to VIP access, 80 million euros of additional contributions from the IOC (TOP program) and 37 million euros not detailed “because the fact of a multitude of lines of improvement of resources. »
Who will receive the surplus?
Faced with these excellent financial results, and a small line in the contract which is favorable to them, the French National Olympic Committee (CNOSF) and the French Paralympic Sport Committee (CPSF) will receive money.
“We will be able to activate a return contract clause for better fortune. From the beginning, it was planned that if our commercial revenues exceeded the objectives, there would be a portion of payment to the CNOSF (8 million) and to the CPSF (1 million)”indicates Fabrice Lacroix. Or 9 million euros to the two organizations according to the contractual guarantees.
In addition to the 26.8 million surpluses. Who, precisely, will these unused millions go to?
The distribution provides 20% for the CNOSF, 20% for the IOC and 60% for sports development projects in the host country. Jackpot for the CNOSF therefore. “This surplus is for the development of sport in France. The objective of the first quarter of 2025 will be to decide on the terms of use of this surplus”estimates Tony Estanguet. With or without him? “If the budgetary landing is voted by the board of directors on December 12, with a positive result, I consider that my mission as executive president of the organizing committee ends. I no longer intend to take up this paid activity for 2024.”
The fact remains that the events group, GL Events, responsible for managing a large majority of competition sites, is demanding 30 million euros from Cojo for “end of contract adjustments”, according to the media La Lettre.
And public money?
The cost to public finances of the Olympic Games would be around 2.4 billion euros according to the organizers (among the 8.85 billion of the overall budget). Le Monde puts them at 2.8 billion euros. Against 1.47 billion initially planned for 2018. The Court of Compotes will hear the organizers in early 2025.
Nevertheless, Fabrice Lacroix assures that in view of the results: “we will succeed in reducing the contributions of public money that were planned. » In the spring of 2024, the organizers – taken with a burst of caution “faced with the risks that presented themselves” – had requested an extension of the public finances of the city of Paris, the metropolis and the Île-de-France region. “We will ultimately not need to call for the 17.5 million euros in commitments requested. Nor the guarantee requested on the achievement of Paralympic ticketing turnover of 12 million euros. Nor the state guarantee on lottery revenues of 13 million euros. In total, 42.5 million euros were relieved of the stakeholders who had made the commitment”details Fabrice Lacroix.
