Hosting the Olympic Games Again:
Should ‘Veteran’ Cities Be Prepared to Re-Bid
or Get Ready to Serve as ‘Safety Nets’
by R...
Or perhaps … while not in the title …
Should IOC Consider
Bidding Protocol Allowing
Cities to Bid for
Multiple Games?
2
Acknowledgements
 This work is largely drawn from material created by Burton
and Robert Kaspar (Kufstein University) and ...
Abstract
Since 1896 (118 years), IOC has selected eight different
cities to host Olympic Games on multiple occasions
 Pa...
5
Multiple Olympic Games Hosts
 Summer Olympics
 Athens (1896, 2004)
 Paris (1900, 1924)
 London (1908, 1948 and 2012)...
Bidding for 2022 6
 IOC’s bidding calendar for 2022 Winter Olympic Games
announced October 2012
 Selection occurs 31 Jul...
Brazil 2016
 During recent review of Rio de Janeiro’s preparations for
2016 Summer Olympic Games, Australia’s NOC preside...
Cost of Recent Games
Beijing 2008 was reported as having cost
US$42B to stage (Weir, 2013)
London 2012 estimated at US$1...
Reasons for Hosting
 Burton and O’Reilly (2013) speculated reasons for hosting Olympics
may be fueled in part by:
A cent...
Density vs. Regionalism
While recent host city bids have stressed appeal of
site-based density (all events taking place w...
Research Goals
Investigate feasibility of whether cities hosting Olympic
Games can be incentivized to prepare, given thei...
Possible Flaws in Concept
 IOC generates revenue by getting multiple cities to bid
(against each other) because competiti...
Lake Placid Interview
Interviewed James Rogers, originally chairman of
ceremonies for Lake Placid 1980 Winter Games; ulti...
Lake Placid Interview
“Squaw Valley did such a poor job [hosting 1960 Winter
Games] and then Innsbruck 1964, Grenoble 196...
Lake Placid Interview
“The cost of Winter Games was getting out of
control and a lot hinged on Lake Placid. Little Lake
P...
Austria Interview
Interviewed Robert Kaspar, CEO/Managing
Director of Salzburg 2010 Winter Olympic bid and
executive invo...
Austria Interview
 Minimum cost of bidding (Euro10M) pales next to
“normal” of Euro 20M
 In Austria’s case, 80% must com...
Austria Interview
According to Kaspar (2013) IOC president Jacques Rogge
went to official reception with the Mayor of Inn...
Austria Interview
Once was possible to stage Winter Games in cities like
Innsbruck, Lake Placid, Lillehammer and Sarajevo...
Media Coverage Shapes City Branding
(Sport Business International, May 2014)
Ultimate Sports Cities 2014 Final Rankings
 ...
Research Commentary
If IOC believes bidding/hosting costs can be
contained, sufficient supply of ‘new’ and veteran
cities...
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Prof. Dr. Richard Burton - Hosting the Olympic games again – should Vetréran Cities be prepared to re-bid or get ready to serve as safety nets?

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Vortrag von Prof. Dr. Richard Burton (Syracuse University) auf dem 14. Hamburger Symposium Sport, Ökonomie und Medien am 05./06. Juni 2014.

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Prof. Dr. Richard Burton - Hosting the Olympic games again – should Vetréran Cities be prepared to re-bid or get ready to serve as safety nets?

  1. 1. Hosting the Olympic Games Again: Should ‘Veteran’ Cities Be Prepared to Re-Bid or Get Ready to Serve as ‘Safety Nets’ by Rick Burton (Syracuse University - USA) 14th Hamburg Symposium for Sports, Economics and Media Hamburg, Germany 5 June 2014 1
  2. 2. Or perhaps … while not in the title … Should IOC Consider Bidding Protocol Allowing Cities to Bid for Multiple Games? 2
  3. 3. Acknowledgements  This work is largely drawn from material created by Burton and Robert Kaspar (Kufstein University) and presented at 6th Annual International Sport Business Symposium in Buenos Aires, Argentina in September 2013  Sincere appreciation to Dr. Wolfgang Maennig, professor of economics at Hamburg University  Thanks also to Dennis Neumann and Katharina Pohle 3
  4. 4. Abstract Since 1896 (118 years), IOC has selected eight different cities to host Olympic Games on multiple occasions  Paris: first to repeat (1924/1900)  London: first to secure three successful bids in 2005 for 2012  1908, 1948, 2012 Issue of Olympic “gigantism” suggests Games have become massive financial undertakings demanding significant infrastructure investments for host city Initial research probing concept of whether IOC should approach bidding process thinking 2X commitments 4
  5. 5. 5 Multiple Olympic Games Hosts  Summer Olympics  Athens (1896, 2004)  Paris (1900, 1924)  London (1908, 1948 and 2012)  Los Angeles (1932, 1984)  Tokyo * (1964, 2020)  Notes: Tokyo was selected over Istanbul and Madrid on 7 September 2013 in Buenos Aires. Only 3 cities stand  Winter Olympics  St. Moritz (1928, 1948)  Lake Placid (1932, 1980)  Innsbruck * (1964, 1976)  Notes: Innsbruck also hosted 2012 Winter YOG  If Beijing wins 2022 bid, it becomes first city to host both Summer and Winter Olympics
  6. 6. Bidding for 2022 6  IOC’s bidding calendar for 2022 Winter Olympic Games announced October 2012  Selection occurs 31 July 2015 in Kuala Lumpur  Early October 2013, eight cities expressing strong interest: Almaty (Kazakhstan), Barcelona, Beijing, Krakow, Lviv (Ukraine), München, Oslo and Stockholm  Barcelona exits late October 2013  München drops out November 2013 (four days before NOC deadline to submit applicant city)  Stockholm withdraws January 2014  Krakow retires May 2014 (leaving four cities)  Given instability of Ukraine, by July 2015 IOC voters may only have three candidates (means host city selected on second vote)
  7. 7. Brazil 2016  During recent review of Rio de Janeiro’s preparations for 2016 Summer Olympic Games, Australia’s NOC president John Coates noted the following:  "The IOC has adopted a more hands-on role," said Coates regarding Rio. "It is unprecedented for the IOC but there is no Plan B. We are going to Rio." In Coates’ opinion Rio is "a worse situation" than in 2004, when there were concerns about preparations for the Athens Games.  "It's the worst that I've experienced," he added. "We have become very concerned. They are not ready in many, many ways. We have to make it happen and that is the IOC approach. You can't walk away from this." (BBC, 2014 found at: http://www.bbc.com/sport/0/olympics/27201384) 7
  8. 8. Cost of Recent Games Beijing 2008 was reported as having cost US$42B to stage (Weir, 2013) London 2012 estimated at US$18-19B Sochi 2014 may have reached US$60B and almost certainly was most expensive Olympic Games ever staged*  * True Beijing 2008 costs difficult to estimate given Chinese governmental accounting 8
  9. 9. Reasons for Hosting  Burton and O’Reilly (2013) speculated reasons for hosting Olympics may be fueled in part by: A central government wishing to alter global perceptions of political policies or economic capacity (examples: Beijing 2008, Sochi 2014) A country or region’s desire to drive tourism and enhance economic growth (Sydney 2000) A city’s desire to create global awareness and improve sporting infrastructure (Salt Lake 2002) 9
  10. 10. Density vs. Regionalism While recent host city bids have stressed appeal of site-based density (all events taking place within tight radius), many Games have used satellite settings (thus spreading costs to other cities):  Vancouver to Whistler was 125 km away (2010)  Beijing utilized Hong Kong and Qingdao (2008)  Athens used Marathon, Olympia and Thessaloniki (2004)  Salt Lake 2002 staged events in Park City (55km), Soldier Hollow (85km), Deer Valley (58km) and Ogden (56km)  If Oslo wins 2022 bid, it will host events as far as 228km away; Beijing will use location 257km away 10
  11. 11. Research Goals Investigate feasibility of whether cities hosting Olympic Games can be incentivized to prepare, given their existing infrastructure, to host future Youth Olympic Games (YOG) or future Olympic Games To explore IOC branding benefits in periodically staging “retro” Olympics where Games return to popular site that is pre-selected to host twice To recognize if ‘history is forced to repeat itself’ Sochi (2014) will benefit from FIFA World Cup in 2018 and annual Formula I 11
  12. 12. Possible Flaws in Concept  IOC generates revenue by getting multiple cities to bid (against each other) because competition is good and delivers best possible settings for IFs, NGBs, NOCs  Many cities, after staging the Games once, are unable to maintain stadia infrastructures (i.e., Lake Placid 1980) or win bid by creating portable infrastructure that is dismantled and sent elsewhere (London 2012)  Preuss (2013) noted cities often bid suggesting likelihood of new jobs/income, enhanced image, modernization of city. That does not always happen so return of future Games could be met with great resistance since economic facts are known 12
  13. 13. Lake Placid Interview Interviewed James Rogers, originally chairman of ceremonies for Lake Placid 1980 Winter Games; ultimately chairman of protocol division for LPOOC Currently serves as ‘retired’ tour guide for Lake Placid ice arenas (site of ice hockey’s “Miracle on Ice”) While his opinions are, at this stage un-verified, he raised interesting observations 13
  14. 14. Lake Placid Interview “Squaw Valley did such a poor job [hosting 1960 Winter Games] and then Innsbruck 1964, Grenoble 1968 and Sapporo 1972 made big investments and lost a lot of money that when IOC chose Lake Placid [in October 1974] it was thinking of doing away with the Winter Games.” In fact, Vancouver-Garibaldi withdrew bid before final IOC vote in 1974. This came on heels of Denver winning 1976 Winter Games bid in May 1970 but withdrawing in November 1972 With Denver out, 1980 Winter Games were offered to Whistler, BC, Canada but Whistler declined 14
  15. 15. Lake Placid Interview “The cost of Winter Games was getting out of control and a lot hinged on Lake Placid. Little Lake Placid saved the Winter Games.” When asked if Lake Placid could host Winter Olympics again, Rogers said it could “but would have to do it the way Salt Lake did” using nearby cities like Albany (NY), Burlington (Vt.), etc. On issue of YOG, Rogers said, “it is quite feasible for LP to host YOG and in fact IOC asked Lake Placid to pitch for first Winter YOG but USOC wouldn’t go for it because they were going for Chicago 2016.” (Interview with Rogers, 2013) 15
  16. 16. Austria Interview Interviewed Robert Kaspar, CEO/Managing Director of Salzburg 2010 Winter Olympic bid and executive involved with Innsbruck 2012 YOG In his opinion, IOC needs former bid cities [to bid again]. These cities (like Innsbruck and Lake Placid) might like to host the Games again but modern cost issues make consideration difficult However, past Games hosts have built up significant brand recognition (as Olympic city) and can efficiently deliver the historical legacy of Olympic movement Notably evident with 8 repeat bid-city winners 16
  17. 17. Austria Interview  Minimum cost of bidding (Euro10M) pales next to “normal” of Euro 20M  In Austria’s case, 80% must come from city, province and republic; 20% from sponsors  City must develop long-term master plan to engage sports and to view Olympics, world champs or other major sporting events as key to long-term economic health  “However, a long-term plan built around sport is a risk and if city mayor is not committed to sport, you’ll never get anywhere.” (Interview with Kaspar, 2013) 17
  18. 18. Austria Interview According to Kaspar (2013) IOC president Jacques Rogge went to official reception with the Mayor of Innsbruck and reportedly said ‘coming back to Innsbruck for fourth time would be nice.’ He was referring to Innsbruck’s previous hosting of two Winter Games and one YOG Why say that? Logical for IOC president to encourage potential bid cities, particularly past hosts known for excellence Further, Innsbruck’s master plan called for upgrading sports facilities between 2002-10. That meant certain enhancements were already in place 18
  19. 19. Austria Interview Once was possible to stage Winter Games in cities like Innsbruck, Lake Placid, Lillehammer and Sarajevo Likely that future Winter Games must go to European capital cities like Stockholm, Oslo, München, Zurich, Vienna American cities such as Salt Lake, Denver, Reno-Tahoe previously indicated interest in bidding for 2022 or 2026 Winter Games (based on USOC support and Summer 2024 decision) 19
  20. 20. Media Coverage Shapes City Branding (Sport Business International, May 2014) Ultimate Sports Cities 2014 Final Rankings  1. London  2. Melbourne  3. Auckland  4. Copenhagen  5. Calgary  6. Manchester  7. Sydney  8. Glasgow  9. New York*  10. Berlin*  11. Singapore  12. Amsterdam  13. Tokyo  14. Vancouver  15. Doha  16. Cape Town  17. Paris  18. Kazan  19. Kuala Lumpur  20. Madrid 20
  21. 21. Research Commentary If IOC believes bidding/hosting costs can be contained, sufficient supply of ‘new’ and veteran cities may continue bidding to host future Olympics But if costs skyrocket and number of ‘legitimate’ bid cities decline, IOC presidents may wish to visit concepts where cities are allowed to host twice within fixed period of time  IOC used multi-quadrennial bidding with NBC Sports If bids for 2024 are ‘low’, IOC may need research to determine if rising costs are unsustainable for only “one bite of the apple” or whether projected costs are driving bid cities away 21

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