The Business Logic and Economic Impact of Olympic Games

Hosting the Olympics has become a financially risky endeavor that has reduced the number of willing bid cities, as recent games like Athens 2004 and Tokyo 2020 resulted in massive deficits while Beijing 2008 stands out as a rare profitable exception. To mitigate these risks, the Paris 2024 Games have adopted a cost-saving strategy by utilizing 90% existing or temporary venues, though expenses for security and infrastructure projects like cleaning the Seine have still caused the budget to exceed initial estimates. Despite the heavy costs, organizers rely on record-breaking ticket sales, broadcasting rights, and major sponsorships to generate revenue, banking on long-term economic benefits and city branding to justify the immediate financial burden.