Why Hosting The Olympics Isn't Worth It Anymore

Summary

The video script discusses the escalating costs and controversies surrounding the Olympics, questioning their sustainability. It highlights how past games have consistently exceeded budgets, with the IOC taking a larger share of revenue. The script also touches on environmental impacts and the dwindling number of cities willing to bid as a host. Suggestions include the IOC's proposed reforms and the idea of a permanent host city to alleviate financial burdens, with Los Angeles as a potential candidate. Despite challenges, the Olympics remain popular, with high support from candidate cities' populations.

Takeaways

• 🏅 The Olympics are often associated with overspending, waste, and controversy, which can negatively impact the host city long after the games are over.
• 📈 Every Olympic Games in the last 50 years has exceeded its budget, with the 2014 Sochi Winter Games being a notable example of massive cost overruns.
• 📚 Professor Andrew Zimbalist, an expert on the Olympics, highlights the high costs of various facilities required for the games, including athletic venues, an Olympic village, and media centers.
• 📺 The International Olympic Committee (IOC) has been taking a larger share of revenue from the games, significantly impacting the financial benefits for host cities.
• 🏟️ Post-Olympics, stadiums can be costly to maintain and may fall into disrepair if not utilized properly, affecting property values and the environment.
• 🌲 The environmental impact of the games, such as habitat destruction for the Winter Olympics, raises concerns about the sustainability of hosting the Olympics.
• 📉 The number of cities bidding to host the Olympics has decreased due to financial failures and the extensive planning required.
• 💡 IOC President Thomas Bach has proposed a list of actions to reduce costs and improve sustainability, aiming to make the games more attractive to potential host cities.
• 🏙️ Zimbalist suggests a radical solution to the bidding problem by establishing a permanent host city with existing infrastructure to reduce the need for new construction.
• ❄️ Climate change affects the feasibility of hosting Winter Games, as fewer cities can guarantee snow, potentially making a permanent host city more viable.
• 🌐 Despite the challenges, the Olympic Games remain popular among the public, with high support rates in candidate host cities for the 2020 Games.

Q & A

What are some of the issues associated with hosting the Olympic Games?

The issues include overspending, waste, controversy, and lasting damage to the host city, such as environmental disruption and high maintenance costs for the newly built stadiums.

How has the Olympic Games' budgeting changed over the past 50 years?

Every game in the last 50 years has gone over budget. For example, the 2014 Sochi Winter Games exceeded its 10 billion dollar budget by an additional 41 billion dollars.

Who is Professor Andrew Zimbalist and what is his contribution to the discussion on the Olympics?

Professor Andrew Zimbalist is an author who has written several books on the Olympics, including 'Rio 2016: Olympic Myths, Hard Realities,' and he is well-versed in the financial and operational aspects of hosting the Games.

What are the costs associated with hosting the Olympic Games?

The costs include building athletic venues, an Olympic village, media and television production facilities, a media village, ceremonial and green spaces, and transportation infrastructure.

How has the International Olympic Committee (IOC) changed its revenue sharing with host cities?

The IOC has been taking a larger percentage of revenue from host cities. In the 90s, it took 4%, but by the 2016 Rio Games, it pocketed 70% of the revenue.

What are the environmental impacts of hosting the Winter Olympics?

The environmental impacts include destruction of natural habitats such as mountainsides, trees, and the displacement of animals, some of which may be close to extinction.

Why are fewer cities bidding to host the Olympic Games?

Fewer cities are bidding due to the financial failures of past Games, the long planning period, and the high costs associated with hosting, which often do not result in profit.

What was Boston's experience with bidding for the 2024 Summer Games?

Boston pulled its bid for the 2024 Summer Games after the citizen group No Boston Olympics convinced the city that hosting the Games was not in their best interest.

What actions did IOC President Thomas Bach suggest to shape the future of the Olympic Movement?

Thomas Bach suggested a list of 40 actions, including evaluating bid cities by assessing opportunities and risks, reducing the cost of bidding, and incorporating sustainability in all aspects of the Olympic Games.

What is Professor Zimbalist's proposal to keep the Olympics alive?

Zimbalist supports the idea of getting rid of the bidding system and selecting a permanent host city that already has the necessary infrastructure and facilities, such as Los Angeles for the Summer Olympics.

How do public opinions in candidate host cities reflect their support for the Olympic Games?

According to an IOC poll for the 2020 Games, there was significant support from the residents of candidate cities, with percentages reaching up to 83% in Istanbul.

Outlines

00:00

🏅 The Olympic Overhead: Costs and Controversies

This paragraph delves into the financial burden and controversies surrounding the hosting of the Olympic Games. It highlights the issue of overspending, with the 2014 Sochi Winter Games serving as a prime example, where the budget was exceeded by an additional 41 billion dollars. The narrator introduces Professor Andrew Zimbalist, an expert on the Olympics, who outlines the various costs associated with hosting the games, including the construction of athletic venues, an Olympic village, media facilities, and transportation infrastructure. The paragraph also touches on the International Olympic Committee's (IOC) increasing share of revenue from TV rights, which has significantly impacted the profitability of hosting the games.

📉 Declining Profits and Environmental Impact

The second paragraph discusses the decline in profits from hosting the Olympics and the environmental impact of such large-scale events. It points out that new stadiums can cost up to 30 million dollars a year to maintain and often occupy valuable real estate, leading to issues with property value when the facilities are not properly utilized post-games. The paragraph also raises concerns about environmental disruption, citing the destruction of a mountainside for the Winter Olympics in Pyeong Chang, which affected local flora and fauna, some of which were close to extinction.

📉 The Diminishing Appeal of Hosting the Olympics

This paragraph examines the decreasing interest in hosting the Olympic Games due to financial failures and the lengthy planning process. It provides historical data on the number of cities bidding to host the games, showing a significant decline over the years. The paragraph mentions specific examples, such as Chicago's failed bid for 2016 and Boston's withdrawal from the 2024 Summer Games bid. It also notes the IOC's response to these challenges, with President Thomas Bach suggesting a list of 40 actions to reshape the future of the Olympic Movement, focusing on reducing costs, assessing risks, and promoting sustainability.

🌐 A Permanent Host: A Solution to the Olympic Dilemma?

The final paragraph presents an alternative idea to sustain the Olympic Games by eliminating the bidding system and selecting a permanent host city with existing infrastructure and facilities. Zimbalist suggests Los Angeles as a potential host for the Summer Olympics, given its existing infrastructure and status as a major city and entertainment hub. The paragraph also considers the benefits of a permanent host for the Winter Games, especially in the context of climate change affecting the reliability of snow in traditional host cities. It concludes by noting the continued popularity of the Olympics among the public, as evidenced by support for candidate host cities, and emphasizes the IOC's role in ensuring the games' future success.

Keywords

💡Olympics

The Olympics refer to an international multi-sport event that takes place every four years, either as the Summer or Winter Games. The Olympics are a central theme in the video, illustrating the grandeur and the growing challenges associated with hosting the games. The script mentions the 'death of the Olympics' suggesting a decline in their significance due to various issues.

💡Overspending

Overspending refers to the excessive expenditure that exceeds the budgeted amount. The video script discusses how every Olympic game in the last 50 years has gone over budget, using the 2014 Sochi Winter Games as an example where the cost overrun was an additional 41 billion dollars.

💡Controversy

Controversy in this context denotes the disputes or disagreements surrounding the hosting of the Olympic Games. The script implies that controversies are part of the recent games, affecting the perception and the feasibility of hosting future Olympics.

💡Host City

A host city is the city selected to organize and host the Olympic Games. The script highlights the lasting damage and financial burdens that hosting the Olympics can impose on a city, affecting its infrastructure and economy.

💡Professor Andrew Zimbalist

Professor Andrew Zimbalist is an economist and author who has written extensively on the economics of the Olympics. His insights are used in the script to discuss the costs and requirements of hosting the games, emphasizing the financial strain on host cities.

💡International Olympic Committee (IOC)

The International Olympic Committee is the governing body of the Olympic Movement, responsible for selecting host cities and overseeing the games. The script mentions the IOC's increasing share of revenue from the games, which has implications for host cities' financial returns.

💡Sustainability

Sustainability in the context of the Olympics refers to the practice of organizing the games in an environmentally friendly and economically viable manner. The script discusses the IOC's efforts to include sustainability in all aspects of the Olympic Games, reflecting a response to environmental concerns.

💡Bidding System

The bidding system is the process by which cities compete to host the Olympic Games. The video script suggests that the bidding system may be flawed, with fewer cities willing to bear the financial burden and environmental impact of hosting.

💡Permanent Host

A permanent host is a city that is designated to consistently host the Olympic Games, eliminating the need for bidding and construction for each edition. The script presents this as a potential solution proposed by Zimbalist to address the challenges of hosting the Olympics.

💡Climate Change

Climate change is the long-term alteration in average weather patterns. The script mentions how climate change affects the Winter Olympics, with fewer cities able to reliably provide the necessary snow for the games, impacting the selection of host cities.

💡Public Support

Public support refers to the approval or backing from the citizens of a city or country for hosting the Olympic Games. The script cites polling data showing high levels of support from candidate host cities, suggesting that despite the challenges, there is still a desire among the public to host the Olympics.

Highlights

The Olympics are increasingly associated with overspending, waste, and controversy.

Every Olympic Games in the last 50 years has exceeded its budget.

The 2014 Sochi Winter Games' budget overshot by an additional 41 billion dollars.

Professor Andrew Zimbalist has extensively studied the economic impact of the Olympics.

Hosting the Olympics requires massive infrastructure investments, including athletic venues, an Olympic village, and media facilities.

The IOC has been taking an increasingly larger percentage of revenue from the Games.

Newly built stadiums can cost up to 30 million dollars a year to maintain.

Post-Games, many facilities fall into decay, negatively impacting property values.

Environmental disruption is a significant concern, with examples of habitat destruction for the Winter Olympics.

Fewer cities are bidding to host the Olympics due to financial failures and long-term planning requirements.

The IOC President Thomas Bach has proposed a list of actions to reduce costs and increase sustainability.

Zimbalist suggests a permanent host city as a solution to the financial burden of the Games.

Los Angeles is identified as a potential permanent host for the Summer Olympics due to existing infrastructure.

A permanent host could also benefit the Winter Games as climate change affects snow reliability.

Despite the challenges, the Olympic Games still enjoy widespread public support in candidate host cities.

The International Olympic Committee has a crucial role in ensuring the Games' future by managing both on-field and off-field issues.

Transcripts

- [Narrator] Ah, the Olympics.

The glory of our best athletes competing for greatness

in shiny new stadiums for viewers around the world.

But recent game are rife with overspending,

wastes, and controversy.

And most viewers don't even see the lasting damage

the games do to the host city.

Could we be watching the death of the Olympics?

Well, right now it's hard to tell.

But this honored tradition is looking sicker every year.

Hosting is expensive.

Every game in the last 50 years has gone over budget.

The 2014 Sochi Winter Games went over

it's 10 billion dollar budget

by an additional 41 billion dollars.

No one knows this better than Professor Andrew Zimbalist.

He's written several books on the Olympics,

including "Rio 2016: Olympic Myths, Hard Realities."

- These days they require about

35 different athletic vendors.

They require an Olympic village that costs one and a half,

two, three billion dollars depending on the circumstance.

They require a media and television production facility,

which could very easily go for half a billion

to a billion dollars.

They require a media village.

They require ceremonial space, and green space.

They require transportation amongst all of them,

and special lanes for the IOC executives transportation

amongst all of the venues.

- [Narrator] Cities used to make a profit from the games.

Partly because they collected

a lot of revenue in TV rights.

But recently the International Olympic Committee

has been taking a larger percentages.

In the 90's for instance, it took 4% of revenue.

Compare that with the 70% it pocketed

from the 2016 Rio Games.

The newly built stadium can cost up to 30 million dollars a

year to maintain and they are often on valuable real estate.

Most cities don't even know what

to use them for after the games.

Those facilities fall into decay if they're not kept up,

and that hurts property value.

- There could also be a lot of environmentalist disruption.

The Winter Olympics they'll be having in Pyeong Chang,

they destroyed a whole mountainside.

Trees and animals that are there,

and some of them close to extinction.

- [Narrator] So who'd want to host the Olympics

in the first place?

Not many.

After each financial failure fewer cities bid to host

the following decades games.

After all, it takes 10 years of planning

just to be in the running to host.

Chicago spent and estimated 100 million on the campaign

to host in 2016, and they lost.

Boston famously pulled it's bid for the 2024 Summer Games,

after citizen group No Boston Olympics

convinced the city otherwise.

12 cities bid for the 2004 games, five for 2020,

and just two for 2022 Winter Games: China and Kazakhstan.

So is that it?

RIP Olympic games?

- (chuckles) It won't end.

Thomas Bach, the President of the IOC,

for all the criticisms that I have of him, he's a smart guy,

and he knows when he's up against the wall.

And they've been up against the wall.

- [Narrator] In 2014 IOC President Thomas Bach suggested

a list of 40 actions the IOC could take

to shape the future of the Olympic Movement.

Among them, evaluate bid cities by

assessing key opportunities and risks,

reduce the cost of bidding,

and include sustainability in all aspects

of the Olympic Games.

It sounds good on paper,

but time will tell if these actions take root.

- We're gonna become more sustainable,

we're gonna become more affordable,

we're gonna become more flexible,

and by doing that, by tweaking the model a little bit

and making pronouncements,

they reengage cities to participate.

And what's generally happened is the model has been

slightly reformed.

It's a little bit more sensible now then it was

before the end of 2020.

- [Narrator] Zimbalist supports a different idea

to keep the Olympics alive.

Get rid of the bidding system and pick a permanent host.

Somewhere that has the built in facilities,

infrastructure, and venues.

- [Zimbalist] We happen to have such a city

for the Summer Olympics, it's Los Angeles.

They don't have to do any building virtual.

They've got the infrastructure,

transportation infrastructure.

Because it's the second largest city

and the entertainment capital of the country.

They've got all of the professional teams

from all the leagues.

- [Narrator] A permanent city could benefit

the Winter Games as well.

As the climate changes, less cities that have

hosted Games in the past can reliably keep snow.

The IOC isn't a fan of this idea,

but as bidding hosts dwindle, so do their options.

The future Summer Games are planned out through 2028,

and the Winter Games through 2022.

The 2026 Olympics have several cities exploring bids,

including two previous hosts,

Salt Lake City and Sapporo Japan.

Germany, Australia, and India

have all expressed interest in the 2032 Summer Games.

Despite its flaws,

the Olympic Games is still a people pleaser.

The IOC polled candidate host cities for the 2020 Games

and 70% of Tokoyo, 76% of Madrid,

and 83% of Istanbul were in support.

So maybe the Olympics aren't dying,

but it's certainly up to the

International Olympic Committee to keep the games in check.

Both on the field and off.

(gentle orchestra music)