The Olympics is a money loser.
The 2026 Milan-Cortina Winter Olympics event is almost here and there are some economists in Italy who are celebrating because the event is going to bring money to the country and give Italy world-wide attention, something money cannot buy. Italy’s officials think that long‑delayed infrastructure projects will finally get off the ground because the Olympics is in town. But there is projection and there is reality. The event is a money loser for the host country and the host country rarely gives out the number when it comes to return on investment and never reveals just how much taxpayers have to pony up to pay down the event debt. Italy’s Economy Minister Giancarlo Giorgetti said money earmarked for Olympic works could help lift the national economy but it wouldn’t be much. The 2024 Paris Summer Olympics did very little for the French economy. France’s Court of Auditors estimated the Olympics lifted economic growth by just 0.07 of a percentage point in 2024.
“My little hope is that we get a helping hand, a bit of ‘healthy doping’ for the country’s growth,” Giorgetti said. “Big events are an opportunity for major mobilization on infrastructure. They are also an excuse to address problems that otherwise would not be tackled with the speed that is required, and that allow us to achieve results.” Italy’s political leadership has spent 3.5 billion euros or $4.1 billion US but according to the politicians several studies revenues will exceed 5.3 billion euro or about $6.3 billion US. The numbers seem to just have been pulled out of thin air. The Milan Cortina Olympics organizers have had more than six years to build facilities for the event and have come up short with the Milan arena that will be hosting hockey games. It appears that it isn’t complete but the Games must go on.
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