Earlier this month, Oslo withdrew its bid to host the 2022 Winter Olympics, leaving the International Olympics Committee with just two bidders for that event: Beijing (China) and Almaty (Kazakhstan). Oslo had been the clear front runner based on application ratings issued by the IOC, but the Norwegian government apparently got cold feet when faced with the projected $5.4 billion cost, before overruns. Earlier this year Kraków (Poland), Stockholm (Sweden), and Lviv (Ukraine) withdrew their bids; Kraków and Stockholm because of voter disapproval, and Lviv, because the Ukraine was/is preoccupied with more pressing matters.
But what about the economic benefits of hosting the Olympics? Another piece from Business Insider analyzes the supposed benefits accruing to the Olympic host city, drawing from a pair of pieces (from 2004 and 2006) written by Victor Matheson, Prof. of Economics at the College of Holy Cross. Matheson did some back-of-the-spreadsheet analysis to estimate the "multiplier effect" from the additional business produced during an Olympics. The multiplier takes indirect economic benefits into account; for example, workers who have more disposable income will spend some of the extra money at local bars and restaurants, giving the bartenders and chefs more money to spend, etc. In two of Matheson's three scenarios, the multiplier actually drops as the outside income increases, because much of the money is withdrawn from the city by business owners.
Matheson was therefore skeptical at published estimates of huge economic windfalls received by past hosts of the Olympics and the World Cup.
While Business Insider tried to make the point that cities have evidently learned from others' mistakes (because of the dearth of remaining applicants for 2022), it should be mentioned that four cities in the USA are still competing to host the 2024 Summer Olympics, and there are many other contenders around the world.
(Score: 3, Interesting) by khallow on Friday October 17 2014, @01:59PM
(Score: 3, Funny) by hoochiecoochieman on Friday October 17 2014, @03:42PM
Isn't it Donald Trump you're talking about?
(Score: 2) by Immerman on Friday October 17 2014, @07:39PM
>With other peoples' money, of course.
Nonsense, they're the *ruler*: all the money is theirs, they only let other people hold some of it as an investment to stimulate economic growth.
/sarcasm
(Score: 0) by Anonymous Coward on Saturday October 18 2014, @01:58AM
We'll see who gets the last laugh once we attain a cultural victory!
(Score: 1) by khallow on Saturday October 18 2014, @03:23PM
(Score: 5, Insightful) by bradley13 on Friday October 17 2014, @02:21PM
Surely no one believes that there are actually any economic benefits? Every dollar that can be scraped off the host country is pocketed by the IOC. Just like FIFA and the world of football (soccer, for you Americans). That's why they rave about such things as "indirect" benefits - so that they can convince the host country to spend even more money on a ridiculous extravaganza, and build too many stadiums that will sit empty after the Olympics have moved on.
The best thing that could happen to the IOC would be for all countries to withdraw until such time as the IOC cleans up its problems. First and foremost, it should not be the goal of the IOC to rake in the dough. The goal ought to be to hold a fair competition at as low a cost as possible, to both host countries and competing teams.
But money corrupts, and there is a lot of money in play, so I don't suppose that will be happening any time soon...
Everyone is somebody else's weirdo.
(Score: 2) by Arik on Friday October 17 2014, @02:33PM
If laughter is the best medicine, who are the best doctors?
(Score: 5, Insightful) by Thexalon on Friday October 17 2014, @03:16PM
Similarly, people who've studied the issue have determined that professional sports teams bring approximately $0 in net economic benefit to the cities they play in. What basically happens is that tax levies and such help line the pockets of the team owners, and people go to different bars than they otherwise would have, but that's about it.
My basic view on sports teams and major sporting events is that there is no legitimate reason for them to receive any kind of different treatment from the government as other entertainment venues like theaters and clubs and concert halls. It's not like sports teams and outside event committees don't have money available to spend on this kind of thing.
The only thing that stops a bad guy with a compiler is a good guy with a compiler.
(Score: 0) by Anonymous Coward on Friday October 17 2014, @11:33PM
Most sports franchises are a plantation model: basically, 1 guy gets really rich.
I'd like to see an analysis of the economic benefits brought to the community by the Packers NFL team.
I know that the team is owned by shareholders who have to be residents of Green Bay, Wisconsin.
Any NFL fans here who have researched the economics?
-- gewg_
(Score: 2) by Phoenix666 on Friday October 17 2014, @08:58PM
Yeah that's about right. The IOC is so corrupt, the commercialism so consuming, and the jingoism so nauseous the whole thing ought to shut down until it's all cleaned up and returned to the simple joy of competition and celebration of human achievement.
Washington DC delenda est.
(Score: 2) by Geezer on Friday October 17 2014, @02:21PM
The headline, and Prof. Matheson's conclusions, could be abbreviated without loss of meaning to simply:
"Olympics are overrated."
(Score: 2) by nitehawk214 on Friday October 17 2014, @02:34PM
Came here to post this exact pun.
It is a way to buy world wide attention by bribing a bunch of people.
"Don't you ever miss the days when you used to be nostalgic?" -Loiosh
(Score: 2) by elf on Friday October 17 2014, @02:26PM
The John Oliver "Last Week Tonight" had an interest video clip on this, they looked at the aspect of the absurd requirements the Olympic committee puts on the host nations.
http://www.youtube.com/watch?v=QrKf-fAekds [youtube.com]
(Score: 5, Informative) by takyon on Friday October 17 2014, @02:28PM
Winter Olympics: What now for 2022 after Norway pulls out? [bbc.com]
The IOC is a corruption engine that hides behind the feel-good international dazzler that is the Olympics.
Here's more. [harryshearer.com]
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 4, Interesting) by M. Baranczak on Friday October 17 2014, @03:27PM
The IOC had a good profitable scam going, but they got too greedy. And it doesn't look like they learned their lesson yet. In 10-20 years, China will be the only country in the world that's willing AND able to host the Olympics. And at that point, the Chinese will be dictating the terms to the IOC.
(Score: 3, Interesting) by Blackmoore on Friday October 17 2014, @05:25PM
at this point i'd be perfectly fine with that idea. and as an added bonus the athletes themselves will not participate in the event when pollution levels in China generate a haze thicker than the last time they hosted.
(Score: 1, Interesting) by Anonymous Coward on Friday October 17 2014, @05:39PM
It makes sense for cities to host it again and not move it around all the time.
They can re-use facilities. They know if they can handle the crowds or not. You do not end up with 20+ buildings that are empty for decades.
It makes good economic sense to re-use.
To get money you either win large sums. Or you get repeat customers. Hosting the Olympics is not like winning the lottery.
(Score: 3, Insightful) by Blackmoore on Friday October 17 2014, @10:48PM
Which would be good, - if the IOC wasnt just another bunch of money grubbing 1%.
they arent interested in stability; they are looking for cash to put into their own pockets, and some more to their self picked lackeys; and government conspirators.
(Score: 5, Interesting) by Thexalon on Friday October 17 2014, @03:27PM
Feel-good? Not really. When you look at the major stories coming out of the Olympics, at least in my lifetime, you get:
- A figure skater arranging a hit on a rival figure skater
- Teenage gymnasts getting raped by their coaches (because when you're 14 years old, you can't legally consent to anything with a 30-year-old, especially one who is in a position of power over you)
- All sorts of creative doping
- Obvious faking during the opening ceremonies
- Very cutthroat competition, understandable when you see the ridiculous amounts of endorsement money at stake
- All sorts of IOC corruption and bribery, one round of which involved future presidential candidate Mitt Romney
The only thing that stops a bad guy with a compiler is a good guy with a compiler.
(Score: 2) by takyon on Friday October 17 2014, @03:40PM
Hehe. Ok. I meant how a channel like NBC/CBS/whatever markets the Olympics with athlete bios and sob origin stories, interviews on every morning program, the pictures on the boxes of Wheaties, the commentary during the opening ceremony, the theme of peace and international cooperation, the way the host city markets the Olympics to the public, etc. Only a portion of the public can identify the IOC or will decry the massive bill for hosting an Olympics. Ignorance reigns, and ignorance is great for the IOC.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday October 17 2014, @08:41PM
Hopefully, this is the beginning of the world catching on to the scam.
(Score: 2) by fadrian on Friday October 17 2014, @10:50PM
Of course there's not a lot of trickle down effect - if there was, they wouldn't be doing it.
That is all.
(Score: 2) by Appalbarry on Friday October 17 2014, @11:43PM
Pshaw! Since BC hosted the 2010 Winter Olympics every single person in the province is very wealthy, poverty has disappeared entirely, unemployment has neared zero in every month, and tourism has grown by 5000%.
Plus we now have free education, affordable housing, and unicorns!
"Monorail!" [youtu.be] Oops - I mean "Skytrain!
(Score: 0) by Anonymous Coward on Friday October 17 2014, @11:46PM
...will either of those places be cold enough to have winter sports without giant slurpee machines cranking out frozen water particles?
Didn't the Olympics already have to do this?
How much does that skew the costs?
-- gewg_