“Can you sustain an average increase of at least 150% over the originally calculated costs, which include billions of euros from the outset? If yes, then go ahead. If not, then leave.” This is the advice he gives to potential organizers Olympic Games book author “How Great Things Are Done”professor at Copenhagen University of Informatics, Bent Flybjergwhich has measured all the collapses of the respective budgets since 1976.

From 49%, Hellas it only ranks 16th out of 19 competitions that have faced cost overruns since the 1970s. However, it cost her the fact that she had a much smaller economy compared to other countries, so the effect of the fee was more tangible. In addition, the 2004 Athens Olympics were organized just three years before the onset of the international financial crisis, which left the Greek economy at a disadvantage against the onslaught of recession.

“Greece was not in a worse position than other countries. There are states that have had larger cost overruns. In Greece, a combination of factors made it difficult to contain spending. Your country has a rather small economy compared to other countries that have hosted the Games, such as the United Kingdom, which has a much larger economy, so the overspending on the event did not cause as much damage as it did in Greece.

Also, Greece was unlucky because all this happened just a few years before the global financial crisis, which means that Greece was in a worse position than other countries when the financial crisis hit. Greece has already had to solve the financial problems that have arisen for the organization. But other than that, there is nothing about the organization of the Olympic Games in Greece that makes them worse or better than other similar events,” emphasizes “K” Professor Flibjerg, who has calculated that the last five events for which there is data available and covering the period 2007 -2016, with an average cost of $12 billion, not including regional spending – roads, airports, railroads, hotels and other infrastructure, which are even higher.

This cost Greece the fact that it had a much smaller economy compared to other countries, and the Games were organized only three years before the international crisis.

He notes that the longer the time horizon of planning (today it has been recorded that it stretches from 7 to 11 years), the more intensively the random variables change and, therefore, there are more opportunities for events that are unpleasantly surprising compared to the initial ones. design.

In this context, it highlights proposals that have been made from time to time to avoid high costs affecting the national economy. One is to have the Games held permanently in a fixed city such as Athens. Another idea is to host two consecutive events in each host city and thus invest in the necessary infrastructure, or distribute sporting events to different permanent venues – for example, athletics in Los Angeles, tennis in London, equestrian sports in Hong Kong. Kong etc.

It is noteworthy that the most expensive Summer Olympic Games to date were held in London in 2012 at a cost of $15 billion. Conversely, the cheapest summer event was registered in Tokyo in 1964 at a cost of $282 million.

* Listen to the full interview with the author of How Big Things Get Done in the corresponding episode of The Money Pod podcast series.