The Paris 2024 Olympic Games are expected to generate a value of up to €11.5bn, according to the Centre for Sports Law and Economics (CDES).
According to the CDES’ Impact Report on the upcoming tournament there are three scenarios of the value Paris 2024 will create for Île-de-France, the region surrounding Paris.
These estimates are based on tourism, construction and organisation activities. Tourism value is expected to come not just from spectators, but also from media covering the event and attending sponsors.
CDES expects the economic impact of tourism to amount to €2.7bn, accounting for 30% of the games’ overall value. The remaining value is made up of the Paris 2024 Organising Committee at €3.8bn (42%) and construction at €2.5bn (28%).
The Paris 2024 Committee has hardly been uncompromising in its spending. In 2022, the Committee’s Board of Directors announced a 10% increase in the Games’ multi-year budget to €4.38bn.
This has informed the CDES’ three valuation of the event – a low scenario of €6.7bn, a medium of €8.9bn and a high scenario of €11.1bn. The CDES has noted that some of these estimates may seem exaggerated, but noted that Île-de-France – also known as the Paris Region – is the highest value region in France.
Regarding tourism, the CDES observed that Olympic visitors often have different spending habits to other sports tourists. Looking at London 2012 and Rio 2016, tourists spent twice as much as standard tourists.
“We have therefore applied this ratio to the spending patterns of French and foreign tourists for the Olympic Games,” CDES explained.
“In contrast, the spending patterns of regular visitors were applied to Olympic Games day-trippers and Paralympic Games day-trippers and overnight spectators.”
Meanwhile, although the CDES report focuses primarily on the spending impact visiting sponsors may bring, it is also important to consider the background of these partnerships.
The Games have been building up an extensive sponsorship portfolio. Preparation is long-running, with some deals such as a partnership with Decathlon having been signed back in 2021.
A total of 64 domestic partners have been signed, alongside a roster of high-profile – and big budget – worldwide partners. These worldwide partners are Airbnb, Alibaba, Allianz, Atos, Bridgestone, Coca Cola, Corona Zero, Deloitte, Intel, Omega, Panasonic, P&G, Samsung, Toyota and Visa.
According to SportsBusiness, Paris 2024 organisers expect the sponsorship revenue boost this year to be massive. With 72 days left until the tournament begins, this leaves ample time for organisers to clinch some more sponsorship deals. SportsBusiness states that organiser’s expect the value of these partnerships to exceed the €1.24bn target.
Etienne Thobois was quoted by the outlet as saying: “We’ve already made 99% (of the target). We’re still looking for the last bit but we will reach it. And by reaching it, we should maybe get a couple of million more.
“Reaching the target itself is a great performance because it’s probably 10 times the size of any sponsorship programme in France before the Paris 2024 Olympics. Looking at the economic landscape, I think it’s a fantastic achievement.”
Just as impressive as its sponsorship portfolio if the Paris Games’ is the tournament’s media exposure. Media deals have been secured in over 160 countries covering 22 sports, up from 19 covered in Tokyo 2020 and 15 in Rio 2016.
This exposure, coupled with the general popularity of the Olympics, could drive value further away from the Paris Region. North of the English Channel, for example, the UK government has been investing heavily in Olympic and Paralympic athletes, and Team GB has secured prominent partners like TikTok.
