Joe Leahy – Financial Times, 07/07/2016
Brazil’s Olympic Games are running 51 per cent over budget with an expected cost blowout of $1.6bn, even as the country is sinking under its second year of recession, a study from Oxford university has found.
The study warned that even with its expected massive overspend, the total cost of Brazil’s games at $4.6bn was still modest compared with the outlay of some previous hosts, such as London and Barcelona, making the Olympics one of the riskiest investments a city could make.
“When Rio decided to bid for the Olympics, the Brazilian economy was doing well,” said the study led by Professor Bent Flyvbjerg, of Oxford’s Saïd Business School. “Now, almost a decade later, costs were escalating and the country was in its worst economic crisis since the 1930s with negative growth and a lack of funds to cover costs.”