The Olympics are a terrible investment and a huge risk for the host city. Following is a transcript of the video.
Cities pay billions of dollars to host the Olympics. But is it worth it?
Rio estimated the 2016 Olympics would cost $US3 billion. Instead, the final cost was closer to $US13 billion. The city had to cut healthcare and police spending to afford it. This is what the venues look like just 1 year later.
Host cities hope the increased tourism will be worth it and that the new venues will be used long after the games. However, the costs frequently go over estimates.
Russia estimated the Sochi games would cost $US12 billion. Instead, the final cost was around $US50 billion. Many oligarchs contributed money to cover the buildout. Russia wound up making just $US53 million on the endeavour.
China spent over $US40 billion on the 2008 Olympics. While they made a $US146 million profit, this is what the stadiums look like today.
To help pay for the 2006 Turin Olympics, the Italian government launched a scratch-off lottery game. Ultimately, the city lost $US3.2 million hosting the Olympics. Today, its Olympic Village is used to house refugees.
The 2004 Olympics cost Greece around $US11 billion. Many of the stadiums are in disrepair today.
With runaway budgets and stadiums that may never be used again, the Olympics continue to be a big risk for any city to host.
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