German sports funding is inefficient and fails its purpose
The poor performance of the German Olympic team at the Paris Summer Games is also attributed by the Cologne Institute of German Economy to insufficient sports promotion. "German sports promotion is inefficient and fails to achieve its goal of sustainably strengthening elite sports," said IW economist Melinda Fremerey.
Over the past decade, according to an IW study, spending on elite sports promotion has increased by 36% in real terms, from €44 million to €60 million, but with diminishing returns. Germany finished tenth in the medal table in Paris, with 12 gold, 13 silver, and 8 bronze medals - its worst performance since reunification.
According to the study, federal subsidies paid to sports associations per medal have nearly doubled since Rio 2016. In Rio, the federal government provided around €2.2 million in funding per medal. At the Tokyo Games, this figure was €3.2 million, and in Paris, it reached €3.7 million.
The objective of German sports promotion, as stated by IW economist Melinda Fremerey, is to sustainably strengthen elite sports. Despite a 36% increase in real-term spending on elite sports promotion over the past decade and significant increases in federal subsidies per medal, the German Olympic team's performance at the Paris Summer Games was disappointing.
