The cost of the modern Olympic Games seem to be as big a story at the conclusion of the games as the story about the medal winners.

The 1932 Olympic Winter Games in Lake Placid were the first to be held in North America and the third winter games ever held, after Chamonix, France, in 1924 and St. Moritz, Switzerland, in 1928.

There were 17 countries represented by 252 athletes: 231 men and 21 women, participating only in figure skating. The United States won the most medals with 12.

When the 1932 Games were completed, Willis Wells, chairman of the Finance Committee and North Elba supervisor, released the financial report for the games to the Lake Placid News on Feb. 16. The games ended on Feb. 15. I have no idea where I acquired this faded, hard-to-read copy, but it is a valuable piece of Olympic history. Here it is verbatim:

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“Winter Games Leave Placid $52,467 Deficit”

“Willis Wells, chairman of the finance committee of the Olympic winter games and supervisor of the Town of North Elba, reported today on the financial aspects of the meet.

“True amateur sport is not operated for money and this applies to the International Olympics more than to any other branch, he said. From the beginning, we in Lake Placid knew the receipts could never pay more than a fraction of the cost of putting on the games. We knew that we would have to take care of our share of the expense. We looked upon what we would do as an investment in the future of our community and the Adirondack region in general. We are happy today that we accepted this responsibility. How well we discharged it is for others to say.”

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The deficit

“We had estimated that the gate receipts would be in the neighborhood of $100,000. Despite inclement weather during parts of the games, it now appears that the income from the sale of tickets will not be more than$4,000 below that figure.

“To date, the cost of the games is approximately $1,137,653.13 of which $724,425.46 is for construction expenses, $238,917.20 for administration expense and $179,310.48 for the conduct of the games themselves. Our total budgeted income to date is $1,085,185.98, the main items of which are $500,000 from the state of New York, $350,000 from the Town of North Elba Park District, of which the Village of Lake Placid is the center of population and an anticipated deficiency appropriation of $100,000 from the State of New York. The Town of North Elba Park District’s contribution is in the shape of a bond issue of $200,000 and a temporary loan of $150,000. As the gate receipts were to be applied against this loan, those receipts have been included in our budget income.

“These figures represent a deficit of $52,467.15 on our books. Approximately half this amount was caused by inclement weather during the last four weeks, $24,620.10 being the cost of restoring the ski jump, the outdoor stadium and the bob run, practically washed out on two occasions. This deficit is the least of our worries. We have every assurance it will be completely wiped out in a short time.”

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Cost of 1980 Olympic Winter Games

The staff of the Lake Placid Olympic Organizing Committee, including me, had always believed that the deficit of the 1980 Games was around $4 million. The Wikipedia website claims the deficit was $8.5 million and that the cost of the games was $169 million.

That is nothing compared to the poor taxpayers of Montreal. At the conclusion of their 1976 Olympic Summer Games, the cost was $1.4 billion and the deficit was $990 million.

If you want to know the truth about all that, then call my friend Doug Hoffman, a CPA who was also on the staff of the LPOOC and knew where every dime went. He saved me from a tough financial situation.

Another friend of mine was John Musgrave, marketing director for the LPOOC. Late into the games, there was a big shindig for some VIPs, and the booze that was supposed to be donated by some liquor and wine distributor never arrived. John asked me to furnish the needed spirits from our liquor store, which we did. The bill came to $5,000. When the games ended, not many knew we were so in debt. I went to Doug and asked for the check. He said he had orders not to write even one more check, but he also knew that our little River Street liquor store could not handle that debt and he cut me a check. So, Doug, if I did not thank you properly at that time, I will now – thank you!