The Paris 2024 Board of Directors adopted the Organising Committee’s revised multi-year budget of €4.38 billion this week, which represents an increase of approximately 10% or 5% net of inflation.
The Paris 2024 Board of Directors, who met
this week at the Organising Committee’s headquarters in the French capital,
adopted the Organising Committee’s multi-year budget following the third
budgetary review.
This budgetary review, which is traditionally
the most important stage in the forecasting of income and expenditure linked to
the delivery of the event was carried out within the context of high inflation.
A balanced budget
After a collective effort lasting several
months, led in close collaboration with the International Olympic Committee
(IOC) and its stakeholders, the Paris 2024 Board of Directors, guided by
recommendations of its Audit Committee, adopted a revised multi-year budget of
€4.38 billion (an increase of approximately 10%, or 5% net of inflation).
The adoption of this budget, which takes into
account all identified changes in the cost of delivering the Games, reinforces
the project's ambition and preserves the means to cover risks, with a
contingency reserve maintained at a protective level of €200 million.
This budget enables Paris 2024 to move calmly
into the operational delivery phase of the event.
More public funding for the Paralympics
Following the announcement of more
high-profile events linked to the Paralympic Games - notably the Opening
Ceremony in the Place de la Concorde - at the joint initiative of Paris 2024
and all its stakeholders, public funding of the Paralympic Games has been
increased by €71 million to a total of €171 million.
The French State (€44,5 million), the Métropole
du Grand Paris (€15 million), the City of Paris (€5,6 million) and the
Ile-de-France Region (€5,6 million) have stepped up their support for this
project to give it unprecedented visibility and ensure it changes French
people’s attitudes towards disability forever.
In total, public authorities will contribute
4% to the financing of the Olympic and Paralympic Games (96% from private
funding).
Increased partnership and ticketing revenues
As part of its domestic partnership programme,
Paris 2024 has already reached its target of securing 80% of revenues by the
end of 2022. In view of the advanced state of discussions with a number of
companies, Paris 2024 has increased its projected income from domestic
partnerships.
Estimated ticketing income is also higher than
before as a result of the combined effect of the competition schedule and
venues being confirmed, as well as the work to optimise venue capacities
carried out in close cooperation with the IOC.
Moreover, Paris 2024 has followed its Audit Committee’s
recommendation to generate more income from the most popular sessions without
abandoning its accessibility policy (with €24 tickets available in all sports
and almost half of tickets costing around €50 or less).
Reduced expenditure for more efficient
solutions
With the support of the IOC in particular,
Paris 2024 has reduced its projected expenditure by identifying numerous ways
of cutting costs across all budget lines. This has been achieved firstly by
streamlining the specifications of the Games and secondly by taking a series of
measures relating to the competition and non-competition venues, temporary
infrastructure and the scale of the ceremonies.
Examples include reducing the number of days
on which the Athletes’ Village, training venues and competition venues will be
operational, and cutting unnecessary energy use at the competition venues.
The French State (€25 million) and the
Métropole du Grand Paris (€15 million) will also provide financial support for
certain investments in the French public interest that will contribute directly
to the legacy of the Paris 2024 Games. These include the purchase of sports
equipment, financing of anti-doping equipment at the Université Paris-Saclay
laboratory and various development projects that will have post-Games benefits.
A prudent approach to operational risks
The revised Paris 2024 multi-annual budget
takes into account all the key issues and risks identified by the Organising
Committee as the operational phase of Games delivery draws near.
For example, the security budget, which had
already been increased by 50% in the previous budgetary review, has been
allocated an additional €25 million, while the cybersecurity budget has also
seen a €10 million increase to take into account the relevant risks.
Finally, in order to address operational risks
during the final 18 months of delivery, Paris 2024 has decided to maintain its
contingency provision of €200 million.
Main Press Centre for the Paralympics
The Paris 2024 Board of Directors approved a
proposal to locate the Main Press Centre for the Paralympic Games in the
Olympic Aquatics Centre (OAC) in Saint-Denis. This decision is subject to
ratification by the governing bodies of the International Paralympic Committee
(IPC) in January.
The Main Press Centre for the Olympic Games
will be located at the Palais des Congrès at Porte Maillot.
