In the second and third centuries AD, many of the cities in the eastern Mediterranean could boast about having their own athletic games. In the fourth century, however, these games quickly declined. In recent years, the traditional explanations for the end of athletic games, most prominently the supposed ban by Theodosius, have been proven unfounded. This paper proposes an alternative explanation: institutional and financial changes hindered the successful organization of athletic contests by the cities in the fourth and fifth centuries. In order to show the effect of these changes, this paper first offers a detailed analysis of how athletic contests were founded and funded in the early imperial period. It then examines how and to what extent these procedures and funds were affected by changes in late antiquity. The decline was not caused by a general financial crisis - in fact the estates (partially) funding the games remained a stable form of financing. Instead the shift of power to a centralized bureaucracy limited the cities in their administration of the games: they could no longer independently meet deficits in the agonistic budget from the city treasury and had to rely increasingly on elite sponsors, whose ambitions focused mainly on the provincial capitals and who gradually lost their interest in athletics.