The Olympics Make Billions…But The Athletes Are Broke

The video explains the complex financial model of the Olympics, highlighting how the International Olympic Committee (IOC) generates billions in revenue while host cities often face bankruptcy and most athletes struggle financially (0:00).

IOC Revenue Streams

• The IOC made $7.7 billion from 2021 to 2024 (0:36).
• Broadcast rights account for 55% of revenue, with NBC in the Americas being a major contributor (1:13).
• Sponsorships through the Olympic Partners (TOP) Program make up 36% of revenue (2:51). However, some long-term sponsors, like Toyota, have withdrawn due to concerns about the IOC's political stance and its distribution of funds (2:25).
• The remaining 9% comes from other activities like licensing deals (3:03).

Host Cities and Financial Struggles

• Host cities are primarily responsible for the non-OCOG budget, which covers construction and capital investments, leading to significant cost overruns (6:41).
• Since 1960, every Olympic Games has gone over budget, with an average overrun of 150% to 175% (7:14). Montreal in 1976 was 720% over budget, taking 30 years to pay off its debt (7:36).
• Host cities often incur massive expenses for "white elephant" structures like stadiums and train lines that are rarely used after the games (9:41).
• The financial burden largely falls on taxpayers (10:10).
• In 2019, the IOC changed its bidding process due to fewer cities wanting to host, aiming for a more financially stable approach (5:18). Paris 2024 aimed to mitigate costs by using 95% pre-existing or temporary venues and had established transportation (14:53).

Athlete Financial Instability

• Despite the billions in revenue, less than 6% of the IOC's revenue goes directly to athletes (10:50).
• The average US Olympian earns around $20,000 per year, often requiring them to work part-time jobs (10:55).

• Olympic athletes primarily fund their participation through a combination of sources, as the International Olympic Committee (IOC) does not directly pay them for competing (12:21-12:24, https://www.olympics.com/ioc/finance. The funding typically covers their extensive training, equipment, coaching, travel, and living expenses.

  Here's how athletes typically secure funding:

  • Stipends from Sporting Bodies Athletes may receive monthly payments from their sport's governing body, such as USA Track and Field. These stipends vary significantly by sport and are often based on an athlete's experience, past performance, and potential to win medals. For example, athletes in popular sports like gymnastics, swimming, or track might receive a few thousand dollars per month, while those in less prominent sports like fencing or rowing might only get a couple of hundred dollars (11:49-12:13).
  • Prize Money from Home Countries The IOC does not offer prize money for winning medals (12:21-12:24). Instead, any monetary reward for medals comes from the athlete's home country. The amount varies widely; for instance, Singapore and Hong Kong might pay over $700,000 for a gold medal, while the US pays $38,000, and Great Britain offers no prize money (12:27-12:38).
  • Sponsorships and Endorsements This is a significant source of income for many athletes, particularly those with high visibility. Major stars like Simone Biles, Michael Phelps, and Usain Bolt can earn millions annually through sponsorships (12:44-12:59). However, sponsorship deals depend on an athlete's popularity, performance, and ability to generate a return on investment for brands. Less famous athletes, even if they are top in their field, often struggle to find sponsorships (13:00-13:23, https://www.investopedia.com/news/how-athletes-get-funding-olympics/.
  • Personal Contributions and Fundraising Because the funding from other sources is often insufficient, many Olympians hold one or two part-time jobs while training (11:11-11:17, https://www.si.com/winter-olympics/what-do-olympic-medalists-get-medals-money-rewards. The video highlights that many athletes even have to fundraise within their communities to cover the cost of traveling to the Olympics (13:31-13:35).
  • Olympic Solidarity Grants The IOC redistributes a portion of its revenue to National Olympic Committees (NOCs) to support athlete development, training grants, and travel subsidies, especially for athletes from developing nations.
  • Private Donations In recent developments, private donations have begun to offer more direct financial stability to athletes. For example, a recent $100 million donation is set to provide Team USA athletes with $200,000 each starting in 2026, regardless of medal wins.

  Overall, while the Olympic movement generates billions, a very small percentage of the IOC's revenue (less than 6%) directly reaches the athletes (10:50-10:55), making financial stability a significant challenge for most Olympians.

• Only major stars like Simone Biles and Michael Phelps secure lucrative sponsorship deals (12:52). Most athletes struggle to find sponsorships and often have to fundraise to cover travel expenses (13:31).

The video concludes by questioning where the money goes, suggesting that the IOC takes no risk while cities and taxpayers bear the financial burden, and the athletes, who make the show possible, receive very little (13:53). The directors of the IOC, however, take home a combined $50 million (14:35). A long-term solution proposed by some analysts is to have permanent host cities for the Summer and Winter Games (15:23).