The Olympics will cost over 6 billion euros. A monstrous figure, which however does not seem to surprise or worry analysts. In particular the rating agency Standard & Poor’s which has tried to line up the numbers, partial and above all incomplete because only in 2032 will the last construction sites be closed and will it be possible to weigh the infrastructural legacy and the ‘social’ impact of Milano Cortina 2026. Sponsorship and TV rights have filled the organizers’ coffers but now a final sprint is needed on the sale of tickets for the races. Costs have increased, partly due to the 2022-2023 inflation shock and a difficult macroeconomic environment, including the war in Ukraine and the metaphorical tariff war, but also due to several additional infrastructure projects. It was also necessary to replenish the liquidity coffers with money which, however, should go through the infrastructure commissioner and not directly from the Foundation.
The Winter Olympics will cost Italy less than the 2015 Milan Expo
Overall, however, according to analysts, the Winter Olympics will cost Italy less than the Milan Expo in 2015. The works plan is over 4 billion and it should cost the Milano Cortina Foundation to organize this ‘widespread’ edition just under 2 billion. The MIT data speak of over 3.5 billion in total investments, 340 companies involved, 98 interventions are destined to remain in the territories, 47 sports facilities and 51 transport infrastructures. The rating agency does the math in Simico’s pocket: for the Eugenio Monti sliding center in Cortina around 132 million euros, for the partial reconstruction of the jumping stadium in Predazzo, in Trentino Alto Adige, 92 million. Choosing the Milan exhibition center for some indoor competitions was instead a cheaper alternative to building a new facility. The Olympic village of Cortina has an estimated cost of 40 million; that of Milan of 140, the Arena Santa Giulia of 250 million (largely financed by private individuals). The majority of operating costs instead pass through the Foundation, whose latest budget “amounts to 1.7 billion euros”.
IOC contributions, essentially broadcasting rights and international sponsorship programs, finance almost 60% of the budgeted costs. There are many top global partners, including Coca-Cola (sponsor of the Games since 1928) or Airbnb (which plastered the Cadorna metro station with its advertising campaign), or Omega (official timekeeper with an agreement until 2032), the American conglomerate P&G (among other things it set up laundry services in the Olympic villages). Then there are the domestic arrangements. Some companies are involved with infrastructure plans, often legacies that will remain in the area such as the 650 million investment by FS to renovate 10 stations, strengthen the railway and road networks (even if it continues to take almost 6 hours to get to Cortina from Milan, only half an hour less than 70 years ago) or Enel’s 47 million plan for the distribution network. On sponsors, however, the target of 500 million should have been exceeded thanks to 54 house brands, divided into four levels and related value bands. The Premium Partners (with contributions from 23 to over 30 million) are Enel, Eni, FS, Intesa Sanpaolo, Poste Italiane, Leonardo, Salomon (uniform supplier) and Stellantis (for the car fleet defined as an ‘ambitious project’). Then there are the partners with a commitment of 12 to 23 million, and the sponsors of 4 to 12 million (this includes the Polygraphic Institute and State Mint which will create the medals) and Technogym (which sets up the gyms in the 7 sites). Finally, with a chip of up to 4 million among the Official Supporters of Kässbohrer Italia (prepares ski and snowboard slopes), Liski (racing poles, protective nets and mattresses). The rest will come from ticket sales for the events. The organizers estimate around two million spectators and 3 billion will be global spectators. The TV rights have been assigned to Warner Bros Discovery and the European Broadcasting Union (until 2032) and are estimated at around 400 million euros. According to the latest records, 900 thousand tickets were sold on the platform and 300 thousand were sold to sponsors in partnership agreements, for a total of 1.2 million. «We have invested money, yes, but more will arrive than we have invested» assures minister Matteo Salvini and according to a study by Banca Ifis the Winter Olympics will generate an economic value of 5.3 billion euros for Italy.