The Swiss Federal Council has formally endorsed Switzerland's candidacy to host the 2038 Olympic and Paralympic Winter Games, committing up to CHF 200 million - roughly $248 million - in federal funding and approving a dispatch for submission to Parliament. The announcement, made on Sunday, marks a significant step forward for a bid that has been in Privileged Dialogue with the International Olympic Committee and must satisfy the IOC's requirements before the end of 2027.
What the Federal Government Will - and Will Not - Pay For
The CHF 200 million federal contribution is carefully ringfenced. Of that total, CHF 60 million is earmarked to co-finance the Paralympic Games, CHF 50 million will subsidise public transport for visitors, CHF 80 million covers additional organisational costs, and a CHF 10 million contingency fund is set aside for unforeseen expenses. Security costs fall outside this envelope and will be absorbed by the Confederation as part of its standard national responsibilities. It is worth noting that this is an entirely separate domain from niche sports wagering markets - such as super netball betting - that occupy a very different corner of the global sports economy, illustrating just how broad and varied the landscape of sporting investment and engagement has become worldwide.
The more consequential line in the Federal Council's statement, however, is what Bern will explicitly not guarantee: any deficit. The Confederation has made clear it will bear no liability should the Games run into financial overruns. A privately financed deficit guarantee of CHF 200 million has been provided by the organising association, with total event costs estimated at CHF 2.2 billion. Revenue is projected from IOC contributions, sponsorship, ticketing and merchandising, but the absence of a sovereign backstop is a structural feature of this bid that the IOC will need to assess carefully.
The Deficit Guarantee Question - A Potential Sticking Point With the IOC
For recent Olympic hosts, government-backed deficit guarantees have been the norm. The Milan Cortina 2026 Winter Games carry financial assurances from local, regional and national Italian authorities. Los Angeles 2028 relies primarily on the City of Los Angeles as guarantor, with California offering partial support, though the U.S. federal government does not participate directly. Switzerland's model is more restrictive still at the national level, which creates a genuine negotiating challenge as the Swiss bid works toward a satisfactory submission to the IOC by the end of 2027.
The IOC has shown flexibility in recent years through its Future Host Commission process, favouring ongoing dialogue over the rigid competitive bidding of previous decades. Switzerland's winter-sports infrastructure is beyond question - the country possesses world-class venues, deep organisational expertise, and a well-established presence across alpine disciplines. The question is not whether Switzerland can stage a Winter Games of the highest quality. The question is whether the IOC's risk framework can accommodate a bid in which the national government has formally declined to underwrite potential losses.
A Decentralised Model, No Referendum, and a Return to Swiss Winter Olympic History
The Federal Council has classified the planning decision as "not of major significance," which means it will not be put to an optional national referendum - a notable political choice in a country with a strong tradition of direct democracy. The government's reasoning is that the federal financial commitment is substantially lower than in previous Swiss Winter Games bid projects and that the associated risks are manageable. Local and cantonal parliaments in competition host regions will be involved, with cantons and communes expected to match the federal CHF 200 million contribution.
Switzerland has twice hosted the Winter Olympics, both times in St. Moritz - in 1928 and 1948. A 2038 edition would end a 90-year absence from the Winter Games hosting roll and would represent the country's third time staging the event. The bid carries genuine national prestige and broad consultation support, but the path from Federal Council approval to a signed IOC hosting agreement is still long. Parliament must review the dispatch, the IOC dialogue must progress, and the deficit guarantee structure will remain under scrutiny. Switzerland has the sporting credentials. Whether it can satisfy the IOC's financial governance expectations on its own terms is the defining test ahead.
