The Paris 2024 Organizing Committee announced a €26.8 million surplus, reducing public funding reliance by €30 million. Total revenue reached €4.480 trillion, largely from ticket sales and sponsorships, while expenditures were slightly lower than projected. The financial oversight demonstrates effective management amidst rising costs due to inflation and security enhancements.

Fabrice Lacroix, the financial director of Paris 2024, expressed satisfaction during the announcement of the final multi-year budget on December 12. The Organizing Committee for the Olympic and Paralympic Games (COJOP) revealed a surplus of €26.8 million, a notable achievement given previous budgetary apprehensions. Tony Estanguet, COJOP’s president, emphasized this surplus as a point of pride, especially in light of the earlier goal of maintaining budgetary balance just before the Games commenced.

This financial outcome has enabled COJOP to decrease the reliance on public funds by approximately €30 million. Guarantee contributions planned by various entities, including the City of Paris and the French State, were ultimately not required due to the increased revenue. Total revenue for the Paris 2024 Games reached €4.480 trillion, with expenditures standing at €4.453 trillion, evidencing solid financial management.

According to the report, the International Olympic Committee contributed €1.228 trillion, while sponsorships provided €1.238 trillion. Ticket sales, which set a historic record, generated an impressive €1.333 trillion, further bolstered by hospitality offerings that contributed an additional €1.489 trillion, exceeding initial projections by nearly €350 million.

Notably, despite increasing expenditures attributed to inflation factors stemming from 2022 and the ongoing geopolitical climate, efficiency was claimed to be maintained. Lacroix noted that the rise in expenditure was the lowest recorded for modern Olympic Games, countering economic pressures effectively. Some enhanced costs, such as heightened security measures, amounted to an extra €120 million, which were deemed necessary for the event’s success.

Additionally, strategic decisions, like hosting urban sports events at prominent locations, contributed to the overall financial landscape but also incurred additional costs totalling €154 million for the Olympic and Paralympic ceremonies. Lacroix conveyed that these calculated risks were instrumental in attracting impactful partnerships.

The Paris 2024 Olympic and Paralympic Games were designed to be a symbol of inspiration and inclusivity on an international stage. Major financial operational challenges faced by organizing committees of past events have led to increased scrutiny over budgeting and funding practices. The ability to achieve a surplus rather than a deficit contributes positively to future Olympic planning and serves as a model for sustainable event management in a volatile global economic environment. As the host city for the upcoming Games, Paris has utilized various funding sources, including sponsorships and ticket sales, while also implementing fiscal strategies designed to minimize reliance on public funding, significantly influencing their financial success. The background of rising expenditures due to inflation and the evolving demands of event security during current global tensions presents ongoing challenges in event management. Effective financial oversight is paramount in navigating these complexities.

In conclusion, the financial position of the Paris 2024 Organizing Committee reflects prudent fiscal strategies and effective revenue generation methods resulting in a surplus of €26.8 million. The reduction in public funding reliance is particularly noteworthy and illustrates a successful navigation of budgetary challenges. With a comprehensive revenue totaling €4.480 trillion and planned expenses being slightly lower, COJOP demonstrates its commitment to delivering a successful and financially responsible Olympic and Paralympic Games.

Original Source: www.lemonde.fr

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