Business of the Olympics: N.Y., 2012 and beyond
The key (as always) may be the "intangibles" -- out of the New York Olympic Committee's control.
First, will Sept. 11 register as a "symbolic magnet" that would attract the Olympics to the world's "melting pot", or will it engender subconscious safety concerns with Olympic committee members? New York City unveiled a $20 million ad campaign -- including signs reading "People will speak your language" in New York, and "There will be no strangers."
These signs, greeting IOC members this week, hope to create a positive message.
Second, will the drama surrounding the new $1.4 billion Olympic stadium in Manhattan become a "last-minute success" for New York's bid, or a "dramatic last-minute failure"? Cablevision, which owns Madison Square Garden, has mounted a significant anti-stadium campaign, also bidding to develop the site to block the stadium. Organizers are attempting to overcome the roadblocks, and last-minute city and state approval would signal the green light for the largest facility development project in United States history.
Third, will traditional regional alliances carry the day? The voting process eliminates the lowest voted city in each round. Detractors suggest that Vancouver's 2010 Winter Games selection should preclude a North American games two years later. Supporters argue that Athens hosted the 2004 Games, and Torino followed two years later.
Whatever the case, Europe's 52 votes will be key. If a European city wins, other bidders would wait longer for the Games to go back to Europe. Or, they may join together to guarantee that the Games do go "across the pond" in 2012. Time will tell, and the July 6 vote will be incredibly dramatic.
2006: Is Torino ready?
Unbelievably, the Winter Games are less than one year away.
The NBC $2.3 billion TV deal includes the 2006 Torino Olympics, providing a solid foundation from which to build. NBC has been happy recently. The Games made over $50 million in Sydney 2000, and up to $75 million each in 2002 and 2004. After 2006, the network is excited about the 2008 Beijing Games, and extended its rights deal for 2010 in Vancouver and the 2012 Games (wherever they are).
The 17-day coverage of the Athens Olympics averaged a 15.0/26 national Nielsen rating -- up nine percent from the 2000 Sydney Games.
Though NBC may be happy, the International Olympic Committee may not be. In December, the 2006 Torino Games faced a $282 million budget shortfall -- averaging $98,315 for each Olympic athlete. TOROC president Valentino Castellani threatened to resign following a meeting with IOC president Jacques Rogge. The meeting to approve the TOROC budget was canceled in early February, and the IOC has continued to express concern over the finances for the Games.
Additionally, five serious crashes involving injuries on the new Olympic luge track forced the International Luge Foundation to cancel last week's World Cup races. Other facilities may face the same plight as well.
As if that was not enough, the IOC recently "expressed concern" about Italy's anti-doping rules, where athletes suspected of doping can face criminal sanctions. The IOC explained to Italian officials that they expect "Olympic anti-doping rules to take priority" during the Games. Italian officials noted that they would comply with IOC demands, but that they also "must not show weakness in their anti-doping campaign."
The Olympic movement still dominates the sports business. The United States Olympic Committee recently approved its 2005 budget calling for $116 million in spending, 84 percent of it on programs supporting United States athletes and sports federations. The organization trimmed its staff by 40, and expects revenue of more than $575 million through 2008 -- an organization seemingly much healthier than before. In Greece, government officials recently announced that the 2004 Athens Olympics cost about $11.6 billion, almost double the original estimate -- making the Games by far the most expensive in Olympic history.
Despite claims by cynics and pundits that the Olympic movement faces worldwide financial problems, more cities than ever have spent more money bidding for the 2012 Games and beyond. Salzburg, Austria, prepares shortly to enter the fray for the 2014 Winter Games.
Recently also, India's Prime Minister Manmoham Singh revealed that the country was considering a bid for the 2016 Olympic Games. The four cities losing the 2012 derby on July 6 will have until Nov. 15 to file for the 2016 Games.
Look for the business frenzy to continue for New York -- whether 2012, 2016, or beyond.
