The Paralympics ended last Sunday ending Brazil’s two year spell in the spotlight. The country had hosted the 2014 men’s World Cup and Rio hosted the recent Olympic and Paralympic games. Whether it was a good idea for Brazil to host the two biggest events in sport back to back only that country can answer. But it is interesting that the number of cities willing to host the Olympics is falling.
An example of this happened this week. The city of Rome withdrew it’s bid for the 2024 Olympics when newly elected mayor Virginia Raggi refused to support the bid. Rome is the third city to withdraw from the race to host the 2024 Olympics. In 2015 Boston withdrew its bid citing a lack of public support. In the same year the German city of Hamburg withdrew after 51.6% of the city’s voters rejected the bid in a referendum.
But it is not just the 2024 Summer Olympics that suffered from a lack of bidding cities. The 2022 Winter Olympics suffered from the same problem. Four out of six bidding cities ended up withdrawing (Lviv, Stockholm, Oslo and Krakow). The latter withdrew after the bid was rejected in a referendum – just like Hamburg – while Stockholm and Oslo withdrew because of public opposition. Lviv withdrew because of the Ukrainian crisis and intends to bid for 2026. For the 2022 games the International Olympic Committee (IOC) were left with only Beijing – the eventual winners – and Almaty in Kazakhstan.
But why are cities queueing up NOT to bid for the Olympics? The reason is fairly simple – cost and the building of new “white elephant” sporting facilities. The recent Rio Olympics cost $12 billion. The last Winter Olympics in Sochi cost an eye watering $31 billion. The 2004 Olympics in Athens cost €9 billion and is reckoned to be a factor in Greece going bankrupt. This is nothing new. Montreal finally paid for the 1976 Olympics in 2006! Most host cities – the exception being Los Angeles in 1984 – make a loss.
But why is that when the Olympics make a profit? The answer is fairly simple. The host city has to pay the costs of the games not the IOC. But of course the host city does not get any of the profits the IOC does. And after the disaster of 2004 cities are beginning to learn this. Twelve cities bid for the 2004 Olympics. After Rome’s withdrawal only three cities are still in the race for 2024 – Los Angeles , Paris and Budapest – and the Hungarian capital is considered very much the outsider in the race. It is clear that politicians and voters have rumbled the Olympics realising that a successful city gets 16 days of a sporting party and a debt hangover that lasts for years and even decades.
So what needs to happen? The answer is fairly obvious and applies to both the Olympics and the men’s football World Cup. If FIFA and the IOC want to have these big parties they should pay for them – and give half the profits to the host city/country. Since both FIFA and the IOC say they are non profit organisations why can’t they pay for their parties? They also need to moderate their demands. FIFA forced both South Africa and Brazil to change their laws to accommodate their sponsors. Meanwhile the IOC’s list of demands for Olympic host cities was leaked to Norwegian newspaper VG before Oslo withdrew its bid. The number of demands ran to 7000 pages and included such gems as meetings with the King and a VIP cocktail party! No wonder the Norwegians baulked – most countries would at this arrogant nonsense. No wonder the IOC could not get a democracy to bid for 2022 and had to choose between China and Kazakhstan. No wonder three cities have pulled out of the race for 2024.
It’s time that arrogant FIFA and IOC were chopped down to size. And the only way to do it is for Paris, Los Angeles and Budapest to withdraw from the race for 2024 leaving no bidders to host them. The West should announce that if FIFA and the IOC do not pay for the events and give the host city/country a share of the profits not only will Western countries not bid to host the Olympics or World Cup but they will not take part in them. That would be a disaster for FIFA and the IOC as it could mean that their sponsors – mainly Western companies – pull out and if they do the whole house of cards could collapse.
More and more voters and politicians realise that all they get from hosting the Olympics or the World Cup is a mountain of debt. Therefore they don’t want to host the biggest events in sport. Unless FIFA and the IOC realise that and start coughing up for their parties and giving the hosts a piece of their profits they might find out that only dictatorships like Russia, Qatar, China and Kazakhstan are willing to host them. And quite frankly if that becomes the case it serves them right.