This week, the Sports Professor Rick Horrow, in conjunction with his promotional partner Northern Trust, analyzes the business of the Olympics -- 2006 (Torino), 2008 (Beijing), 2010 (Vancouver), and 2012 (???).
This week is by far the biggest in the history of the New York City 2012 Olympic movement. Thirteen International Olympic Committee site selection members are visiting the Big Apple.
The group visited Madrid in early February and London last week; they will travel to Paris in March and Moscow on March 14 in order to make its recommendation to the full 117-member International Olympic Committee for its July 6 selection.
The five major cities compete for the "world's largest peacetime gathering" that will generate over $12 billion in economic impact. Clearly, the stakes have never been higher. It is important, therefore, to reflect on this 2012 selection process, as well as keeping tabs on the progress of the 2006 Winter Olympics preparation -- to be held in Torino, Italy -- in approximately one year.
2012 competition: N.Y. vs. the world
New York City unveiled its 562-page bid book in mid-November, boasting a $3.7 billion budget. This does not include the privately financed athlete's village in Queens, nor the $1.8 billion controversial proposed west side stadium (home also to the New York Jets, future NFL Super Bowls, NCAA Final Fours, and over 100,000 square foot of additional convention space).
On the revenue side, New York anticipates selling 9.4 million tickets that would generate $852 million. The group has signed contracts with one-third of the hotel rooms in New York City and has committed to over 600,000 ad signs for the Games. Olympic organizer Dan Doctoroff said the Olympics would bring over $7.6 billion in capital projects, and would generate the largest economic impact of any sporting event in world history.
The 9.4 million ticket sales would dwarf the 3.6 million sold in Athens in 2004, as well as the 6.7 million sold in Sydney in 2000.
Organizers are counting on the "sexiness" of holding the triathlon in Central Park, baseball in Yankee Stadium, tennis at the National Tennis Center and soccer at Giants Stadium. Additionally, New York is spending $50 million on its bid; including $20 million in donated media promotions; ads on 13,000 taxis; 7,000 buses, and 4,000 subway cars.
The politics of the bid are obviously substantial as well. Doctoroff admits to spending more than $3 million in cash and in-kind donations on this week's IOC tour stop. He also has had over 300 conversations with IOC members and has taken 33 trips in the last five weeks.
The competition is obviously formidable. The Paris bid features clusters of competition sites around the Stade de France and a village not far from the Champs-Elysses -- including guarantees of about $5.3 billion from public and private sectors.
London is planning an 80,000-seat Olympic stadium in a 500-acre Olympic park "to revitalize its east end." Madrid announced $1 billion in Spanish federal support. Moscow shot fireworks over Luzhniki Olympic Stadium and set up an electronic device near Red Square for Russians to register their support for their Olympic bid.
