Combined, these consequences have had significant economic impacts on the country and event that we’ll look into below.
The Paris 2024 Olympics opening ceremony will go down in history as one of the most audacious, spectacular, and controversial events of all time. Taking place along the Seine River in Paris, the four-hour show featured a series of mishaps alongside a message that angered millions worldwide.
The unfortunate events included two main parts, each of which marred the ceremony. The second, however, is one that caused an international outcry and resulted in many changing their views of the Olympics.
Technical glitches
Among the least severe of the day’s events was a technical glitch occurring before the ceremony. As athletes and team managers descended from countries worldwide, the Olympic organizers suffered a significant software glitch caused by an update to Microsoft software.
The update rendered the registration and check-in platforms used by the event useless, meaning that the droves of people arriving could not be authorized and allocated housing for their stay. Although not confirmed, it is believed this same glitch caused the live stream of the opening ceremony to go down, leaving millions of international viewers in some countries with no feed to the event.
Last supper performance
The most prominent talking point of the opening ceremony, which many described as ‘uniquely French,’ featured performances from drag queens performing what appeared to be a fashion show. This show culminated in the group recreating what appeared to be the famous Leonardo Da Vinci painting representing the Last Supper between Jesus and His disciples.
While the show was still progressing, religious groups worldwide began to outcry, claiming that the display was insulting to their faith and a mockery of the Christian faith. This call continued beyond the opening ceremony, with the Pope also issuing a statement against the display.
While the wet weather may have dampened the spirits of those attending, the lasting effects of the opening ceremony and the sour taste it left in viewers’ mouths has continued. Some companies opted to withdraw advertising deals with the event, and many individuals have spoken out against France.
Combined, these consequences have had significant economic impacts on the country and event that we’ll look into below.
Advertising loss
The disastrous opening ceremony of the 2024 Olympics had many companies questioning whether their brand wanted to be associated with the sporting event. With an overall negative view of the ceremony, some brands immediately pulled their advertising deals.
It was claimed that Samsung was among the largest and most public of these. The South Korean electronics manufacturer is one of the most prominent headline sponsors of the event and spends millions of dollars each year.
News quickly surfaced that the company had pulled sponsorship, resulting in a $1 billion loss for the event. While this was quickly proven false since the group extended its sponsorship to 2028, other companies did pull their funding.
C Spire, one of the largest telecommunication providers in the US, quickly posted online that it would be pulling all advertising from the event. Failing to list any financial impact, the group was followed by Toyota, which said it would not be renewing sponsorship after the 2024 Olympics concluded.
Since 2017, the Japanese car manufacturer has been in partnership with the Olympics, spending more than $1 billion on the events. While not citing the 2024 Olympics and the negativity surrounding the opening ceremony as the leading cause, the company has opted to remove all sponsorship moving forward.
It is claimed that many other companies followed suit by removing advertising and sponsorship deals following the event. However, none of these contributed newsworthy amounts, and the overall impact seems to have done little to the event, which concluded on 11 August 2024.
Economic impact
With the 2024 Paris Olympics budget estimated to be around €8.8 billion, many have wondered what the impact of these advertising and sponsorship losses will be. Understanding these consequences can only be achieved by considering the event as a whole.
From the start, the ability to turn a profit or break even by hosting the Olympics has been bleak. With France citing an original budget of €7.5 billion in 2017, the increase to €8.8 billion already shows that the event was wrought with overspending.
To recoup these costs, the government expected an upswing in tourism to the region and public expenditure to boost tax collections. However, this has not panned out, and previous Olympic Games have predicted that this is a misguided belief.
As shown by the effect on Air France, travel to the country dropped significantly during the event, with many opting to watch events online or avoiding the country because of the offence caused by the opening ceremony.
The airline, the largest in France, announced that international interest in Paris was falling and predicted a loss of over $100 million (around €90 million) due to decreased flights. It has said this is a direct result of the games.
This impact also extends to the country, which invested more than €9 billion before the end of the games. Failure to recoup these expenses means the money must be supplemented through public funds, lowering the amounts available for public services.
Conclusion
While religious groups may still be reeling and even the non-religious are outraged by the 2024 Paris Olympic Games opening ceremony, the French economy is undoubtedly taking a hit.
The Olympics as an international event will also be moving forward feeling the financial effects of this year’s games, with the loss of company trust and sponsors like Toyota likely to be felt for years to come.
Gaining new advertisers may also not be as simple as it seems, with many European countries beginning to restrict advertisers such as online casinos that feature popular Hacksaw slot games.
If new advertisers cannot be secured, the event will need to consider trimming budgets, which could lead to future games not being held at the level that spectators are accustomed to.
