Brazil’s estimated budget for hosting the 2016 Olympics as well as the 2014 World Cup has been pegged at between $13 and $18 billion, with the International Olympic Committee only chipping in about $1 billion. Despite Brazil’s soon-to-be economic woes and a corrupt government (SEE: Brazil economy could face deepest recession since 1901), the country has no other choice but to proceed.
It seems Brazil has many unpaid bills due. Indeed, Olympic athletes may be able to compete without any electricity, but they will need plenty of water. Unfortunately for them, they could receive neither when the summer rolls around.
Reportedly, water and electricity have been cut off to the Joao Havelange stadium because of $225,000 worth of unpaid bills, which could place a part of the Olympic events in jeopardy. The stadium has already been without electricity for a week and water has been cut off for a month.
In order to appease their Olympic masters, er, officials, the city isn’t blaming the agency but rather the local soccer team, Botafogo. Municipal administrators note that Botafogo is responsible for covering the bills upon reopening. Botafogo officials are disputing this statement.
Here is what the AP writes:
The Rio organizing committee said Monday it expected the stadium to be ready to host a test event in May, but referred questions to the club and city hall.
The stadium will be the venue for track and field, and for group-stage soccer matches.
The stadium on the north side of Rio was closed in 2013 to repair a sagging roof that was in danger of collapsing. It was reopened last year, and plans are afoot to install the running track for the Olympics in the next few months.
The Joao Havelange stadium isn’t the only sports venue facing a utilities shortage. Maracana Stadium confirmed that it laid off 75 percent of its staff this past week because of budget constraints. Maracana Stadium had been scheduled to host the opening and closing ceremonies.
A tight budget is located all across the Rio Olympics. As the company tries to stay within the $1.9 billion operating budget, organizers are looking to slash approximately $500 million in expenditures. Organizers are going as far as reducing the number of unpaid volunteers, who are given uniforms, meals and transportation.
The Summer Olympics are scheduled for Aug. 5.
The World Cup was already a billion-dollar boondoggle for the country as the government went as far as bulldozing the homes of many impecunious citizens.
This should serve as a warning for any city, state/province or country looking to host an Olympic or FIFA event: don’t!
Here is what Ryan McMaken wrote for the Mises Institute in 2014:
“Theoretically, the Olympics are a private organization, but in practice, it is a corporatist organization run by plutocrats whose mission in life is apparently to squeeze as much tax revenue as possible out of the residents of the countries and cities that host the Olympics. This is done by demanding the usual brand-spanking new stadiums and facilities from the host cities that later become white elephants. But the IOC also demands countless perks for itself, such as only the finest food and drink, and special driving lanes on streets and highways.”
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