The Economics of the Olympics

The quadrennial Olympic Games is the most prestigious event in the sporting world. Hosting the games was once considered a national ambition among many governments. However, in recent decades, it seems that the economic repercussions of hosting the Olympics seem to outweigh the benefits. Many countries like Greece, Brazil and Canada went into debt crises after the games and experienced huge protests and dissent during the Olympics. Coupled with this, the revenue generated from the Olympics rarely covers even half the budget require to organise them. In this discussion, we seek to analyse what has changed in the economics of the Olympics and why nations are not as enthusiastic about hosting the games as they were before.