Inflation blamed for Paris 2024 Olympics budget rise

The projected budget for the Paris 2024 Olympics has risen from £3.41 billion at the end of last year to £3.78 billion.

Around half of the increase of around 10 per cent was due to inflation caused by rising energy costs following the Russian invasion of Ukraine.

Paris 2024 President Tony Estanguet, who had said earlier that the budget was likely to go up by around 10 per cent, told a virtual press briefing that he will be submitting the revised figures to the Games’ Board of Directors on December 12.

He added: “The good news is that Paris 2024 will submit a balanced budget.”

Other elements of the rise in the third budget revision are down to increased expenses.

The combined cost of the Opening and Closing Ceremonies for the Olympics and Paralympics will rise from £86 million to £111 million, with the Olympic Opening Ceremony planned for the banks of the Seine on July 26 due to account for around €100 million.

Funding for security and cyber security has also been increased by an additional £34 million in total to £275 million.

The Organising Committee has announced that ticketing revenue will be up on its forecast of £1.8 million by £122.5 million.

Estanguet said the State and local authorities will provide an additional £61 million for the Paralympic Games, bringing the share of public funding in the overall budget to £147 million, an increase from three per cent to four per cent.

The opening date of the Olympic Village has been postponed by four days, to July 18, and the event venues will open seven days before the first session and not when the Athletes’ Village opens, as originally planned.

Savings of £21.5 million were also made by maintaining a single back-up energy supply system for the sites.

And the movement of spectators by public transport to the sites, in partnership with Île-de-France Mobilité, will not be free as initially planned, allowing Paris 2024 to save £38.5 million.

In the search for additional sponsors, Le Monde reported, the projected returns have risen from £940 million from domestic partnerships to nearly £1.05 billion.

“We are confident in our ability to exceed 90 per cent of our final objective with the arrival of around 10 partners in the weeks to come,” Estanguet added. –Insidethegames

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