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Events

Paris 2024 organising committee approves new €4.38bn budget

Featured image credit: Paris 2024

Featured image credit: Paris 2024

The multi-year budget for the 2024 Olympic and Paralympic Games in Paris has been set at €4.38bn (£3.76bn/$4.66bn), an increase of around 10%, or 5% net of inflation.

The budget was adopted yesterday (Monday) following a third budgetary review, which Paris 2024 said marks the most important stage in the forecasting of income and expenditure linked to delivery of the event.

The Paris 2024 board of directors has worked closely with the International Olympic Committee and its stakeholders in recent months to determine the revised multi-year budget.

The budget considers all identified changes in the cost of delivering the Games and is designed to preserve the means to cover risks, with a contingency reserve maintained at a protective level of €200m. Paris 2024 said the new budget will enable it to “move calmly” into the operational delivery phase of the event.

Paris 2024 has already reached its target of securing 80% of revenues by the end of 2022, while it has increased its projected income from domestic partnerships. Estimated ticketing income (€1.423bn) is also higher than before as a result of the combined effect of the competition schedule and venues being confirmed, as well as the work to optimise venue capacities.

Following a recommendation from its audit committee, Paris 2024 is also set to generate more income from the most popular sessions without abandoning its accessibility policy, with €24 tickets available in all sports and almost half of tickets costing around €50 or less.

Following the announcement of more high-profile events linked to the Paralympics, including the opening ceremony in the Place de la Concorde, public funding of the Paralympics has been increased by €71m to a total of €171m.

The French State (€44.5m), the Métropole du Grand Paris (€15m), the City of Paris (€5.6m) and the Ile-de-France Region (€5.6m) have stepped up their support for the Paralympics to ensure “unprecedented’ visibility and help change attitudes towards disability. In total, public authorities will contribute 4% to the financing of the Olympic and Paralympic Games.

Paris 2024, with the support of the IOC, has reduced its projected expenditure by identifying ways of cutting costs across all budget lines. This has been achieved by streamlining the specifications of the Games and by taking a series of measures relating to venues, temporary infrastructure and the scale of ceremonies.

The French State and the Métropole du Grand Paris will provide €25m and €15m respectively for certain investments in the French public interest that will contribute directly to the legacy of the Games. These include the purchase of sports equipment, financing of anti-doping equipment and various development projects.

The security budget, which had already been increased by 50% in the previous budgetary review, has also been allocated an additional €25m, while the cybersecurity budget has seen a €10m increase to consider the relevant risks. Paris 2024 has also decided to maintain its contingency provision of €200m to address operational risks during the final 18 months of delivery.