Sport economist Norbert Schütte criticized the financial cost estimations presented by the Berlin Senate regarding the potential hosting of the Olympic and Paralympic Games in 2036, 2040, or 2044. Speaking to the “Tagesspiegel” (Thursday edition), Schütte stated that while it might be asserted that Berlin can absorb the costs, this claim is not adequately supported by verifiable figures.
The Berlin Senate recently presented both a bid concept and a comprehensive financing model for the games. This model divides the projected costs into three categories: operational expenses, investment costs, and public services.
The scholar, who teaches at the Institute for Sport Science at Mainz University, specifically criticized the portion dealing with investment costs. He found the proposed investment in sports facilities and general infrastructure to be quite low overall. Furthermore, Schütte expressed concern that the current political climate could lead to unforeseen and large inflationary jumps.
According to the Senate’s plan, investment in infrastructure is totaled at 1.59 billion euros. This includes roughly half a billion euros allocated to transport infrastructure and 227 million euros designated for the expansion and modernization of competition sites, such as the reconstruction of the Olympiapark’s outdoor swimming area, which would require expanded pools and a new roof.
For the core operational costs of the Olympic Games alone, the Senate estimates a total of 4.82 billion euros. They plan to cover these costs entirely through ticket sales, sponsorship, and marketing-a projection that aligns with the successful results of the Paris 2024 Games, where the organizing committee reported a surplus of 76 million euros.
However, the Senate’s concept offers no specifics regarding the third cost block: public services. Costs related to security or administrative overhead were stated to be dependent on “the concrete design of the games and a number of operational framework conditions that can only be set in the further stages of planning”. Schütte pointed out that during the Paris Games, the costs for security alone were reported by the French Court of Audit to be 1.4 billion euros.
Schütte concluded that the bidders seem intent on successfully selling the games to the public as financially viable, suggesting they are not calculating cautiously, but rather basing their projections on the lower, more optimistic end of what is ostensibly realistic.