An Olympic Investment
The True Cost of Olympic Glory
Like most things in 2021, the Tokyo Olympics were shrouded in controversy. Whether or not they should have taken place, and regardless of your opinion on the events that transpired, we can all agree that this incredible global stage featured inspiring performances and incredible feats. But that stage didn't appear out of thin air — host cities must build venues and prepare infrastructure. Behind each awe-inspiring moment is immense sacrifice and cost, both for the host cities and the athletes themselves. While many of these athletic feats happen in minutes or seconds, they’re built on years of emotional, mental, physical, and financial investment. Here, we examine what host cities and athletes actually gain from these investments.
Host City Investment
The host city is chosen by the International Olympic Committee (IOC). Cities must bid to host, and committee members vote by secret ballot. The winning city earns the honor — but at what cost?
Estimated Costs of Recent Olympic Games:
Sydney 2000: $4.7 billion
Athens 2004: $10 billion
Beijing 2008: $42 billion
London 2012: $11 billion
Rio de Janeiro 2016: $11.2 billion
Tokyo 2020: Projected to exceed $20 billion (Forbes)
While Rio may have generated $5–6 billion in revenue and London $5.2 billion, most of that goes back to the IOC (CNBC). Host cities don’t earn much from broadcasting rights, and tourism revenue typically falls short of covering the cost.
A significant portion of expenses goes toward building infrastructure — stadiums, roads, and public transit. Cities like Los Angeles, which already had much of the necessary infrastructure in place, were among the few to profit. While these city improvements may not yield direct revenue, they offer long-term community benefits. Publicity is another intangible benefit, allowing cities to showcase their culture on a global stage. Although not a sound financial investment, hosting the Olympics can offer pride and prestige that’s hard to quantify.
The Athlete’s Investment
Olympians may not spend billions, but their sacrifices are monumental. Most start young, often between the ages of 2 and 5, dedicating 8–10 years or more to training. Add in the mental and emotional toll — the pressure, discipline, and public scrutiny — and the investment is enormous.
While placing in the Olympics can earn a medal and prize money (e.g., $38,000 for a U.S. gold medalist (Team USA), this is a one-time payout. For most, it's not enough to cover years of work. Endorsements can be lucrative for a select few like Simone Biles or Michael Phelps, but the majority of Olympians receive little to no sponsorship.
Most athletes also hold jobs unrelated to their sport — engineers, teachers, real estate agents — balancing full-time work with grueling training schedules. Their dedication, even in the absence of guaranteed compensation, is nothing short of remarkable.
You Can't Put a Price on Prestige
So, neither host cities nor athletes often see financial gain from the Olympics. Yet the value of participation lies beyond profit. Athletes are driven by passion, and for many, the Olympics represent the pinnacle of a lifelong dream.
The games have been part of human civilization for centuries, and while sports fans watch their favorite events all year, the Olympics uniquely unite global attention. The prestige of competing — and possibly medaling — transcends money. It speaks to something deeper: pushing limits, inspiring others, and being part of something historic.
At NEST, we believe money is a means to pursue your passion. Reach out to us at info@nestfinancial.net to start optimizing your finances and building the lifestyle you envision.
DISCLAIMER: The information and opinions shared in this article are for educational purposes only and do not constitute financial planning or investment advice. For guidance tailored to your unique goals, contact us at info@nestfinancial.net.