Do the renowned rings bring benefits to the countries that receive them?

It is estimated that the costs of organizing the Olympic Games in Paris in 2024 will amount to over 14 billion Australian dollars.

So what do the French get out of this?

Will this oldest sporting event shine for them or, as has been the case with some previous Olympic Games, it remains to be seen huge white elephant?

The Power of the Five Rings

The Olympic brand is extremely powerful and provides the host nation with a global platform to enhance its international reputation and standing.

The legacy of the Olympic brand dates back 2,800 years to southern Greece, when the games were held at Olympia in honor of the Greek god Zeus. Starting in 776 BC, these archaic games were held every four years and lasted for over 1,000 years.

The current Olympic Games began in Athens in 1896. Since then, the games have been held in 23 cities and 20 countries.

Around 10,500 athletes from over 200 countries will take part in the 2024 Olympic Games in Paris competing in 32 different sports. Around 4 billion people will watch Around the World.

The five Olympic rings (created by Frenchman Pierre de Coubertin 110 years ago) is one of the most recognizable logos in the world.

It symbolizes the unity of the five continents (Africa, America, Asia, Europe and Oceania).

It is this knowledge and positive associations with the Olympic brand – among which are emotion, honesty and elitism – which some believe justifies spending billions.

Host nations hope that this Olympic glow will boost their country’s reputation – but this doesn’t always happen.

Benefits of hosting the Olympic Games

Broadcasting rights, sponsorships and advertising from organisations that wish to be associated with the Olympic brand can generate huge revenue streams.

The Olympic brand brings significant added value to sponsors and advertisers, and France (and the world) will reap the benefits long after the event has ended.

Responsible marketing and acquiring sponsors who complement the values ​​of the Olympic brand can promote positive, sustainable attitudes and behaviorsExamples of this include promoting unity, national pride, and the social and health benefits of increased participation in sport.

The event also generates huge revenue from domestic and international tourism – it is expected that 15 million spectators will visit Paris in 2024. Most of them are local and domestic day-trippers, but about 3 million additional visitors are expected in Paris during the Games.

The expanded infrastructure and upgraded construction work that has resulted from the city’s preparations for the Olympic Games are bringing numerous lifestyle benefits: the refreshed host city can benefit from improved transport, accommodation, hospitality, sports facilities and streetscapes.

Other significant benefits relate to the enhancement of the host country’s geographical and cultural brand. In the case of France, this includes the enhancement and promotion of a number of registered geographical indicator products, which mainly relate to wine, agricultural and food products, as well as spirits and beers.

Champagne is probably the most recognizable product of the geographical indicator. It illustrates how the link with the place of origin provides consumers with regional and French cultural values ​​and characteristics and quality of products.

What about traps?

Many Olympic Games have not made a profit, which means that countries and citizens there are debts left to pay off for decades after the event (e.g. Rio, Montreal(Beijing and Athens).

In addition, in many cities there was infrastructure that had been built specifically for the Games but later left idle, including accommodation facilities for athletes, aquatic centres and vast stadiums.

What will determine the success of the Olympic Games Paris 2024 and justify the huge investment in organizing the event?

The success of the Olympic Games for the host country often depends on the financial revenue it can generate. The Olympic brand plays a significant role in generating this financial support.

However, brand reputations could suffer as a result of issues occurring before and during the Games, which could limit the positive impact of the Games.

The reputation of the Olympic brand can be affected by issues such as:

• cheating or doping by renowned athletes and national teams

• world sports authorities impose restrictions on athletes based on gender and status

• incompatible sponsors jumping on the Olympic bandwagon. For example, producers of harmful products whose negative brand associations could destroy the Olympic brand, such as sponsors of soft drinks and alcohol

• negative publicity related to unethical practices of host and participating countries with human rights issuesThis also applies to other people using the event to publicize these

• politicization of the event – ​​including “sportwashing”, protests, boycotts and image protection, as seen in the case of China, United StatesAND Russia

• unforeseen events – the COVID pandemic delayed the Tokyo Olympics and raised costs to AUD 18 billion

• other negative risks to the host city, such as terrorism, heat waves and social unrest.

I’m keeping my fingers crossed for France

With almost half the world watching Paris 2024, the French National Olympic Committee will be eagerly awaiting positive results to ensure a forceful return on its A$14 billion investment. However, since Sydney 2000, virtually every host city has suffered significant financial collapses.

For their sake, and for the reputation of the Olympics, let’s hope the Paris Games are a blast – otherwise we could be left with a very narrow number of potential future hosts with very deep pockets.