Sport economist Norbert Schütte has criticized the cost estimates presented by the Berlin Senate regarding a potential hosting of the Olympic and Paralympic Games. According to Schütte speaking to the “Tagesspiegel” (Thursday edition), while the Senate asserted that hosting the games is feasible for Berlin, they failed to support this claim with adequate figures.
The Berlin Senate recently unveiled its proposal for hosting the Olympics and Paralympics in 2036, 2040, or 2044, accompanied by a comprehensive financial plan. This plan categorizes costs into three sections: implementation costs, investment costs, and public services.
Schütte, who teaches at the Institute for Sports Science at the University of Mainz, focused his criticism on the second category-investment costs. He believes that the proposed investment in sports venues and infrastructure is significantly underestimated. Furthermore, he expressed concern that the current political climate suggests the possibility of larger inflationary increases.
The Senate’s concept allocates €1.59 billion for infrastructure investments. This figure includes approximately half a billion euros for transport infrastructure, and another €227 million earmarked for expanding and modernizing competition venues. Specific examples include renovating the summer pool in Olympiapark, which would require both basin expansion and the installation of a roof.
Regarding the pure operational costs of the Games, the Senate estimates them at €4.82 billion. They plan to finance these costs entirely through ticket sales, sponsorship, and marketing. This estimate aligns with the outcomes of the Paris 2024 Games, where the Organizing Committee reported a profit of €76 million.
Conversely, the Senate’s concept offers no figures for the third cost block-public services, such as security or administrative overhead. The plan stated that these costs “depend considerably on the specific design of the Games and a range of operational conditions that can only be determined in the later planning process”. For comparison, the French Court of Audit reported that safety measures for the Paris Games alone cost €1.4 billion.
In conclusion, Schütte argued that the organizers are attempting to market the Games to the public as affordable, leading them to calculate estimates that dangerously approach the minimum possible cost rather than exercising financial caution.
