Business Breakdowns
Episode 176 Olympic Games: The Price of Glory
Business Breakdowns

Episode 176: Olympic Games: The Price of Glory

Business Breakdowns

Episode 176

Olympic Games: The Price of Glory

Andrew Zimbalist is an author and economics Professor at Smith College. We cover the economic and social impact of bringing the Olympic Games to a city, why prospective hosts are more reluctant than ever to bid, and what can be done to reform the Games for the better.

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(00:00:00) Our Partners

(00:01:46) Introduction to Business Breakdowns 

(00:02:38) Diving into the Economics of the Olympics 

(00:03:22) The Financial Strain on Host Cities 

(00:08:30) Historical Context and Changes in the Bidding Process 

(00:15:27) The Role and Influence of the IOC 

(00:18:22) Economic Impact and Cost Overruns 

(00:34:58) Tourism and Long-Term Benefits 

(00:40:14) Potential Solutions for Sustainable Olympics 

(00:42:27) Conclusion and Final Thoughts

 

Olympic Games: The Price of Glory

Introduction

Matt
Welcome back to Business Breakdowns. This is Matt Reustle, and today, we are diving into the economics of the Olympics. It's a timely episode with the Paris Games ongoing right now, and the economic reality for host cities is extremely poor. It's estimated that Paris is going to spend $9 billion for these 2024 games. Now, that's an improvement versus the $35 billion spent by Tokyo in 2020, the $60 billion spent by Sochi in 2014, and a similar number spent by Beijing in 2008.

But even with that improvement, with Paris spending, let's say, $9 billion, it's a loss compared to the revenue that they'll generate, which is somewhere in the mid-single-digit billion dollars. Our guest today is Andrew Zimbalist, author and economics professor at Smith College. Andrew has written extensively on the economics of the Olympics, specifically for host cities.

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