The United States Olympic Committee’s Evaluation Task Force visited Southern California last week to assess the region’s capabilities to host the 2012 Summer Games. L.A., hoping to be the first-ever three time Olympic host, will be the final city considered, following dog and pony shows by Washington D.C., Dallas, Houston, Cincinnati, New York, Tampa and San Francisco.
The USOC Executive Committee will announce the bid city finalists during the first quarter of 2002, with the U.S. candidate city determined later that year. The International Olympic Committee will follow this by announcing the host city for the 2012 Summer Olympics in 2005.
According to the USOC, presentation topics include an analysis of a city’s general and sports infrastructure, sports event experience, general housing and village plan, transportation strategies, government support and public opinion, financial plan and guarantees, and international strategies. The task force will also tour key facilities and meet with each city’s bid leadership personnel.
But what the USOC really needs to determine is which of these cities can win at the international level. After all, the primary goal of the USOC is to raise money to train athletes. And there is no better way to generate financial support than to have the Games in its own backyard.
Based upon the USOC’s stated criteria, L.A. has to be considered the front-runner. Southern California is unmatched in terms of its experienced, executive leadership. Much of the city’s current business and political powerbrokers were participants in the enormously successful 1984 Games.
Venues in place
L.A.’s new Mayor, James Hahn, fully understands the financial process, having served as City Controller at the time. Further, three out of the four U.S delegates to the IOC presently reside in Southern California.
Southern California also boasts unparalleled sports venues. Unlike its domestic competitors, L.A. only needs to build one facility a $20 million shooting range. This is a significant point of differentiation as Olympic Games typically make money from operations but lose millions in constructing venues and other support facilities. This alone makes it nearly impossible for L.A. to lose money hosting the Games, a development not lost on the revenue-seeking USOC.
When these merits are combined with the huge advantage Southern California has in terms of weather and its committed volunteer base, being selected the U.S. candidate city for 2012 should be a breeze.
But nothing associated with the Olympics is easy. When the worlds of sport, big business and politics collide, such a compelling set of circumstances can be viewed as a detriment.
L.A. will have to overcome two major hurdles. Many associated with the USOC would prefer the Games not return to L.A. a third time, likely preferring San Francisco or Washington. Additionally, L.A. is unlikely to financially guarantee the Games.
‘Safe harbor’ sought
Each of these objections can be easily overcome. The USOC recognizes that by 2012 the IOC will be coming off two very difficult Summer Games in Athens and Beijing. And since the IOC may very well want literally and figuratively a “safe harbor” for the Olympics, L.A., with its vast experience as an Olympic host, will emerge as the United States’ best bet.
As for not wanting the same city to host the Games a third time, this might very well become a moot point should two-time hosts London and Paris emerge as top international contenders.
As for lacking a financial guarantee, the sheer fact that only one facility needs to be constructed severely mitigates the region’s unwillingness to commit public funds.
Add to this a newly elected Mayor who understands the ropes and a city with a track record for hosting financially successful Games, and this otherwise significant shortcoming should be identified as a minor local matter. If it remains an issue, expect the region’s private sector to step up and directly guarantee this inconsequential amount or purchase insurance against any shortfall.
These factors suggest that L.A., the bid city right out of central casting, will have the best chance of any domestic city to secure the 2012 Summer Games. And since the USOC is all about raising money to help athletes bring home the gold, selecting a city other than Los Angeles would be foolhardy, as doing so would not serve the financial interests of the USOC.
David Carter teaches The Business of Sport at the University of Southern California Graduate School of Business and is a principal of the Sports Business Group in Los Angeles. He can be e-mailed at [email protected].
