5 Olympic Games that proved disastrous for the host nations

The cost of hosting the Olympics in 2004 played a massive role in quickening Greece’s economic meltdown.

Indian Prime Minister Narendra Modi put paid to all speculations surrounding a prospective bid by India to host the Summer Olympics in 2024. Following IOC Chief Thomas Bach’s announcement that India wasn’t in the race for the 2024 Olympics, speculations as to why India is hesitating have been doing the rounds. Given India’s precarious economic condition today, hosting the Olympic Games could be an extravagance India can ill afford. While all nations across the face of the globe covet the honour of hosting the Olympic Games, few realise the costs, human and economical, that playing host to the quadrennial sporting extravaganza entails. While many countries have successfully turned the Olympic Games into highly lucrative affairs, that have bolstered the economy of the respective countries, many others have been left in a ramshackle state following the heavy costs of mounting an event as colossal as the Olympics. As many sceptics in Russia are lending voice to their sense of foreboding that hosting the Football World Cup in 2018 might end up bankrupting the nation, we take a look at five Olympic Games that brought the host nations to their knees.

#1 2004 Athens Summer Olympics

The cost of hosting the Olympics in 2004 played a massive role in quickening Greece’s economic meltdown.

In 2000, Australia had spent nearly 4.8 billion USD for the Olympics. Four years down the line, Athens had to spend nearly four times as much, as the games returned to its traditional home after 108 years.

Many media reports claimed that Greece spent as much as $32 billion on the Olympics. While this may seem like a gross exaggeration, even the rather conservative estimate of $15 billion is staggering. Among the biggest problems that Greece faced following the Olympics was that, all the infrastructure, including the umpteen numbers of residential complexes that had been built for the athletes and spectators, went to waste, following the games and the government was left with property that was worth nothing.

The high costs that Greece incurred as a result of hosting the Olympics played a vital role in precipitating the country’s economic meltdown., which occurred in 2009.

#2 1976 Montreal Summer Olympics

14-year old Nadia Comaneci of Romania won three Gold Medals in Gymnastics at the 1976 Monteal Games.

The authorities in charge of overseeing the Montreal Olympics in 1976 had pegged the cost of the Olympics at USD 110 million. However, by the time the Olympic village, with a residential complex and state-of-the-art sporting facilities, was completed, the same authorities realised that they had worked up a USD 922 million deficit.

The deficit, which was largely a result of construction overheads, wouldn’t be cleared for thirty years. So disastrous was the financial impact of the Montreal Games on Canada that many countries were dissuaded from vying for an Olympic bid. It didn’t help matters that Canada failed to pocket even a single Gold Medal in the event.

However, in 1977, the Olympic stadium commenced its second innings as the home of the Montreal Expos, the Major League baseball team.

#3 1924 Paris Summer Olympics

The 1924 Olympics yielded a revenue of just 5.5 million Francs against an expected 10.

At a time when Europe was still reeling under the aftereffects of the First World War, Paris got set to host the Summer Olympics for the second time in its history.

Far from being the most popular multi-sport carnival that it is today, the Olympics, in the early years of the 20th century, was still perceived as a specious novelty, and the crowd response to the games that had been conducted prior to the 1924 games had been tepid, at best. But, Paris 1924 changed all that.

A reported crowd of 44,000 descended to the venues in the Paris Games and in anticipation of its success, insurance companies insured receipts of upto 10 million Francs.

However, shock awaited the organisers, when the receipts were computed towards the end of the game, it came upto 5.5 million Francs. The loss to France compounded, to an extent, some of the economic problems that the country was facing in the aftermath of the First World War.

#4 1992 Albertville Winter Olympics

France was left clutching a USD 67 million dollar loss in the aftermath of the 1992 Alberville Winter Olympics. (In Picture: Annelise Coberger, who won the silver medal in the Slalom event in 1992)

In a bid to boost its tourist revenue from the French Alps, France successfully bid for the Winter Olympics in 1992.

In anticipation of the event, the French Government spent One billion dollars to ramp up the infrastructure, not just in Albertville but in the neighbouring towns as well. This was chiefly meant to ease travel across an area of 240 square miles, which played host to 57 different Olympic events. However, the billion dollars proved insufficient as the government needed to pour in 189 million dollars more to improve sporting infrastructure.

While some of the towns that surrounded Albertville did see a spike in tourism, France was still left clutching a 67 million dollar loss. Moreover, it also incurred a massive loss which took a long time to clear.

#5 2014 Sochi Winter Olympics

The Russian government had to suffer a massive public backlash for spending USD 51.7 billion on Sochi Winter Olympics. (In Picture: Chemmy Alcott, who suffered a broken leg in the event)

The 2014 Sochi Winter Olympics will probably be best remembered for the widespread protest rallies that its massive costs produced across Russia, grappling with the woes of economic recession. The Sochi Olympics, which was one of Vladimir Putin’s ambitious projects, was a source of much irritation for a public which was chafing under the weight of the country’s economic woes.

Not only did the budget of USD 51.7 billion far more than expected, it also saw the government splurge on developing infrastructure in and around Sochi to ease commute for the competing athletes. To connect Krasnaya Polyana to neighbouring Adler, the Russian government spent a whopping USD 8.7 billion for the road and railway system and two billion dollars were spent on the construction of Rosa Khutor Ski Resort.

More than a year later, the Olympic complex wears a desolate look as it stands completely deserted. While officials expect the complex to be filled during the tourist season, it is being said that the costs are unlikely to be recovered.

With recession looming on the horizon, the Russian government was forced to introduce a series of cuts in expenditure, making the Sochi Winter Games seem like a monstrous and even a needless extravagance. Russia has also been criticised for setting expectations too high for the countries that will now have to host the event.

Edited by Staff Editor