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Impact of the Financial Crisis on Olympic bids


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After reading more in the past few days about how Spain and Italy could get dragged down by the economic crisis in Europe, I'm starting to think even more that the U.S. should bid for 2020. Spain and Italy are okay right now, but what if their economies tank between now and 2013? Or worse, Rome or Madrid is awarded the 2020 Games, and Italy or Spain ends up like Greece between 2013 and 2020? I think Spain is in greater jeopardy than Italy, but I would certainly be concerned about both countries if I were the IOC.

The U.S. economy is not in great shape right now, but we're not going to default between now and 2020. Perhaps the European economies will rebound over the next few years, but right now, giving the Games to Rome or especially Madrid would be a huge risk for the IOC.

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Well the US-congress has to decide about a change of a "debt-law" adopted around 1917 until aug 1st otherwise the USA is bancrupt - I hope the two ideological controversial parties are aware of their responsible of their duty and not blaming the other party for the situation.

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Do you think if the financial crisis has an impact on Olympic bids? E.g can the IOC trust a bid from a country, which financial standing had been downrated by the rating agencies?

Officially it should impact Olympic bids ! As it is something that the Evaluation Commission is noticing in their report....

But as we know that the IOC members do not take into consideration the technical aspects and the Evaluation report to vote... this impact will be low !

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Let's say country A is part of a currency union, but the financial status is downraded and the other countries of the currency union have to give country A financial help to pay its debts to secure the common currency

Now country A bids for Olympic Games and spend a lot of money for it - shouldn't the members of the currency union decide which of its members bid and if it should bid anyhow?

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Now country A bids for Olympic Games and spend a lot of money for it - shouldn't the members of the currency union decide which of its members bid and if it should bid anyhow?

No, the Eurozone isn't a country.

Pressure from governments and the ECB on indebted states to cut-back and not be frivolous with money loaned/given to them is one thing, a pan-Eurozone committee deciding which countries are fit to launch an Olympic bid is quite another. I don't see how that could ever work and dont' much like the idea of it anyway.

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Do you think if the financial crisis has an impact on Olympic bids? E.g can the IOC trust a bid from a country, which financial standing had been downrated by the rating agencies?

These are the same agencies from which Europe is going to take distance because their spoiled conduct. Despite that, some people are still ready to dismiss a countrie's economy basing their judgements exclusively on these dubious opinions. This sounds specious.

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I hope these are just the death throes of the crisis. By 2020, Europe should have recovered, so a European bid can be reliable.

Famous last words...

Recovered maybe, but to what level? Certainly not to the same as before the crisis. You only can eat what you earn.

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I think it will hurt the bids, people always are more confortable to give major sporting events to countries who are growing fast like Brazil or China, rather than to give them to old strong economy who are struggling.

When you give the games to SA, China & Brazil, you just know that even if the economy & the society may not be perfect but at least they will do their best no matter what and show the world what they are capable of.Besides, you gave them the opportunity to make improvements in the city's infrastructures, new venues, roads, airport etc.

Madrid & Rome are moslty improving existing things, the games don't offer them the opportunity to really design a new city and there is the risk that when money or troubles comes they decide not to build new facilities and use old ones and the IOC cannot do much about it.

We saw London had to do for various reasons to change a part of their initial project for very various reasons.After all it was the economical crisis and Olympics games are a logistical nightmare to organize. But if London had to change a couple of venues and projects because of the crisis and others problems when it is still a strong economy, what Rome & Madrid might do if they are in the same situations with a less positive economy?

I don't say that Rome or Madrid should be overlooked, just that if was an IOC member and i had the choice to go with Istanbul or Durban instead ,and encourage major changes for thoses cities, the fact that Madrid is in crisis and Rome in bad shape with a lof of people unhappy might make me vote for Istanbul.

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I think it will hurt both bids. It's absolutely insane a country in Spain's situation is willing to spend all this money on an Olympics when their economy is in the shitters and having an unemployment rate around 25%. It totally unacceptable to the citizens of Spain. I'm betting the public support will be an all time low for Madrid

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It absolutely SHOULD have an impact.

The economies of both Spain and Italy are dire at the moment. The Olympics are an extravagance - especially in their current form and countries that are having (or are close) to implemneting massive austerity measures should think about how they spent their money and the return that tehy receive from it.

Maybe another way of thinking about this is to look at why the games cost so much. I love the games but I look at some of the bidding and the promises that are made through the process and I really think it needs to change. The concept of the tight venue clusters is great but can be vastly expensive to create - especially when other venues in the city are often available. Why are there so many athletes? It may be their dream to go to the Olympics - but can't we cut down the numbers? Less athletes = less accomodation = less admin etc.

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When you give the games to SA, China & Brazil, you just know that even if the economy & the society may not be perfect but at least they will do their best no matter what and show the world what they are capable of.Besides, you gave them the opportunity to make improvements in the city's infrastructures, new venues, roads, airport etc.

Is there a nation with perfect society or - better - economy now a days? (rethoric question)

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I hope these are just the death throes of the crisis. By 2020, Europe should have recovered, so a European bid can be reliable.

I hope it too.

But in the worst scenario, with European countries facing big financial problems at the time of voting (2013), I predict another emerging country city getting the games, and depending of the bidders, some crazy surprise can happen.

I'm not sure how much this already played a role in 2016 voting. Rio almost won in second round, and not to mention Madrid started the voting with 28 votes and finished with few more - and some say these votes were given because old Mr. Samaranch.

Again, it's just a theory and I'M NOT SURE. smile.gif

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Lets don't forget the USA has serious debt issues as well.

True enough. But I don't think USOC will bid for 2020.

And financial stuff will be part of this decision.

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It's a global problem, but with some exceptions: e.g. People's Republic of China and United Arab Emirates.

On the other hand the wealth of these two countries is based on international trade - e .g. Europe or North America has a financial crisis the industries, which are producing in China can't pay anymore the situation in China would become difficult too or Europe and North America can't pay the crude oil anymore the UAE would get in problems too.

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Lets don't forget the USA has serious debt issues as well.

And part of the bigger picture is the ability of a nation to handle its debt moving forward.

The USA remains a nation that has a strong base in many industries from financial services to manufacturing and technology as well as natural resources. It has the ability to service its debt. Greece, Spain and Italy do not have such a striong basis and are therefore less able to service their high debt.

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And part of the bigger picture is the ability of a nation to handle its debt moving forward.

The USA remains a nation that has a strong base in many industries from financial services to manufacturing and technology as well as natural resources. It has the ability to service its debt. Greece, Spain and Italy do not have such a striong basis and are therefore less able to service their high debt.

Also, USA issues dollar, so they virtually "control" their problem as a respected economist pointed recently in a interview I watched.

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And part of the bigger picture is the ability of a nation to handle its debt moving forward.

The USA remains a nation that has a strong base in many industries from financial services to manufacturing and technology as well as natural resources. It has the ability to service its debt. Greece, Spain and Italy do not have such a striong basis and are therefore less able to service their high debt.

Last time I looked manufacturing in Italy has a larger share than in the US economy

Italy - unlike Spain and Greece - has had a large debt in the last 30 years. We are very good at managing it, unfortunately. The italian national debt being the third largest of the world basically the health of the entire financial structure of the world depends on it: there is no country that could not be affected by a (rather unlikely) default of Italy since all the banks of the world need to have and have italian debt in their portfolio. You know the saying: if I owe you 100 dollars I have a problem, if I owe you 1 billion you have a problem

And we still have a rather smallish deficit...4% this year. UK will probably be 10%

That being said the Rome bid was always a conservative one: it will be the same nonetheless with the minimal cost for the country. When your debt is 1.8 trillion euros what is 5-10 more in 7 years?

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Last time I looked manufacturing in Italy has a larger share than in the US economy

Italy - unlike Spain and Greece - has had a large debt in the last 30 years. We are very good at managing it, unfortunately. The italian national debt being the third largest of the world basically the health of the entire financial structure of the world depends on it: there is no country that could not be affected by a (rather unlikely) default of Italy since all the banks of the world need to have and have italian debt in their portfolio. You know the saying: if I owe you 100 dollars I have a problem, if I owe you 1 billion you have a problem

And we still have a rather smallish deficit...4% this year. UK will probably be 10%

That being said the Rome bid was always a conservative one: it will be the same nonetheless with the minimal cost for the country. When your debt is 1.8 trillion euros what is 5-10 more in 7 years?

Besides, Italy can always (seize and) hock the Vatican and its assets if it's close to a default! ;)

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It shouldn't and it won't. Look if the nation is in debt and bids anyways and gets it, then goes into major debt after olympics. Your not going to blame the IOC are you?

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