German medals at the Olympics are expensive to buy
The German medals at the Paris Olympics were reportedly expensive. Each medal cost 3.7 million euros in sports promotion, according to calculations by the employer-linked Institute of the German Economy (IW Cologne) published on Tuesday. This means the federal government paid almost twice as much in subsidies to sports associations as it did eight years ago in Rio de Janeiro.
Over the past decade, the federal government has spent more: inflation-adjusted spending on elite sports promotion increased from 44 million euros to nearly 60 million euros. In 2016 in Rio de Janeiro, the federal government paid around 2.2 million euros in promotion funds to sports associations per medal won, and in the subsequent Tokyo Games, it was 3.2 million euros. In Paris, Germany won 12 gold medals, 13 silver, and 8 bronze, placing the German team 10th in the medal table. "This is the worst performance by the German team since reunification," said IW.
"Inefficient and failing to sustainably strengthen elite sports, the German sports promotion is underperforming," said IW economist Melinda Fremerey. As the largest economy and most populous country in Europe, Germany is selling itself short. "The sports promotion suffers from the same ailment that burdens the economy: bureaucracy often undermines the effectiveness of government measures," said co-author Simon Gerards Iglesias.
The federal government decides how promotion funds are distributed through a complex, bureaucratic system. Due to insufficient centralization, too many actors are involved, and resources are not targeted at promising disciplines. The German Athletics Association received over 30 million euros between 2021 and 2023, the most of any association, but only won four medals in Paris. "Youth promotion is also failing: German sports schools have fewer applicants," said IW.
German athletes brought home expensive medals from the Paris Olympics. Despite being the largest economy in Europe, Germany spends its sports promotion funds inefficiently, as highlighted by IW economist Melinda Fremerey.
