Andrew Zimbalist - Circus Maximus

Anyone in our broad metropolitan region who worries about the development binge that treats our unique area as a mega-mall for paving over, or who worries about the corrupting influence that commercialization has brought to all amateur sports should read this book.

The Washington Times

A slim yet persuasive book that seeks to set out the economic gamble behind hosting the Olympics and the World Cup. And it succeeds; indeed, it succeeds to such an extent that the reader cant help but wonder why on earth any vaguely sensible city or country would want to play any part in such an expensive business.

SB Nation

Circus Maximus ought to be required reading for the city and state officials anxious to bring the Olympics to Boston.

The Boston Globe

Circus Maximus is required reading for anyone interested in a thorough, no-holds-barred account of how sports mega-events are awarded and what impact these events have on host communities.

The Independent Review: A Journal of Political Economy

CIRCUS MAXIMUS

The Economic Gamble behind Hosting the Olympics and the World Cup

THIRD EDITION

ANDREW ZIMBALIST

BROOKINGS INSTITUTION PRESS

Washington, D.C.

Copyright 2020

THE BROOKINGS INSTITUTION

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Washington, D.C. 20036

www.brookings.edu

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from the Brookings Institution Press.

The Brookings Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy. Its principal purpose is to bring the highest quality independent research and analysis to bear on current and emerging policy problems. Interpretations or conclusions in Brookings publications should be understood to be solely those of the authors.

Library of Congress Cataloging-in-Publication data

Names: Zimbalist, Andrew S., author.

Title: Circus maximus : the economic gamble behind hosting the Olympics and the World Cup / Andrew Zimbalist.

Description: Third edition. | Washington, D.C. : Brookings Institution Press, [2020] | Includes bibliographical references and index.

Identifiers: LCCN 2020011396 (print) | LCCN 2020011397 (ebook) | ISBN 9780815738619 (paperback) | ISBN 9780815738626 (epub)

Subjects: LCSH: Hosting of sporting eventsEconomic aspects. | OlympicsEconomic aspects. | World Cup (Soccer)Economic aspects.

Classification: LCC GV721 .Z56 2020 (print) | LCC GV721 (ebook) | DDC 796.48dc23

LC record available at https://lccn.loc.gov/2020011396

LC ebook record available at https://lccn.loc.gov/2020011397

9 8 7 6 5 4 3 2 1

Typeset in Sabon

Composition by Elliott Beard

To the memory of

Ellie Abend (19242014),

my loving mother-in-law

and intrepid copy editor

Contents

Preface to the Third Edition

T he world of the Olympics and the World Cup has been evolving very rapidly. IOC chief Thomas Bach says that the IOCs new reforms (Agenda 2020, the New Norm, the new selection process) constitute a revolution. FIFA has a new leader, Gianni Infantino, who has introduced some changes in the management of the World Cup that appear to clean up the Games, at least on the margin.

The reforms in the IOC and FIFA, such as they are, have been pushed along by outside forces. In the case of FIFA, there have been a variety of corruption investigations, including one by the U.S. Department of Justice, as well as threats of corporate sponsors to dissociate themselves from the World Cup. In the case of the IOC, a growing paucity of potential host cities, along with highly problematic host city experiences in Sochi, Rio, and Pyeonchang (as well as forebodings in Tokyo) and an increasingly active worldwide No Olympics movement, has forced the IOCs response.

Just as I was pulled into the resistance to the proposed Boston Olympics, in the last several years I have been insinuated into and provided commentary to the bids in Calgary, Hamburg, Budapest, Rome, Stockholm, and Los Angeles. The IOC even invited me to be on a panel at the Youth Olympic Games in Buenos Aires in October 2018. It was neither the most balanced panel nor the most open-minded audience, but I did appreciate the IOCs interest in opening up a dialogue. It is certainly a dialogue that I hope will continue.

This third edition of Circus Maximus serves fundamentally as an update to what has transpired since 2015 in the operation of the Olympics and the World Cup. It covers new hosting experiences, introduces new analyses and data, and attempts to make sense of where these mega sporting events are headed. The text has been updated throughout, and the postscript has been expanded to discuss the latest happenings and reforms, as well as to analyze their likely impact.

I continue to learn about the economics, history, and complexity of mega events and would like to thank several individuals who have advanced my understanding, including Julianna Barbassa, Maria Bogner, Jules Boykoff, Fraser Bullock, Christophe Dubi, Chris Gaffney, Eric Garcetti, David Goldblatt, John Harper, John Lauerman, Judith Grant Long, Victor Matheson, Roger Noll, Dick Pound, Derek Shearer, Stefan Szymanski, Joachim Thiel, Casey Wasserman, and Theresa Williamson.

Preface to the Second Edition

I ts been an active year for the Olympics and the World Cup since the publication of the hardback edition of this book: an ugly scandal broke out at FIFA; the IOC passed its Agenda 2020 reform program; Rio stuttered its way toward the 2016 Olympics; Tokyo threw out its $2.5 billion plans for a new Olympic Stadium; Boston bidders bumbled their way to extinction; and the Russian government seems to have engaged in a massive cover-up and bribery scheme to promote extensive doping among its track-and-field athletes.

The first edition of Circus Maximus was published shortly after the U.S. Olympic Committee chose Boston to represent the United States in the international competition to host the 2024 Summer Games. Living in Massachusetts, I was immediately insinuated into the public discussion on the desirability of Boston hosting the Olympics: writing op-eds in the Boston Globe , giving public lectures, appearing on radio and television talk shows, testifying before the Boston Finance Committee, the NAACP executive committee, and the state senate, working with Chris Dempsey at No Boston Olympics, receiving a request from Boston 2024 to work with it, debating Steve Pagliuca and Dan Doctoroff on prime time television, and more. Mostly it was stimulating, edifying, and fun, though I got called a few names along the waywhich I came to appreciate as badges of honor.

This paperback edition contains a postscript that discusses the Boston bid at greater length along with other salient events surrounding the World Cup and Olympics over the past twelve months. The text from the first edition is also updated and expanded.

Special thanks to Chris Dempsey from No Boston Olympics with whom I have had numerous conversations about the follies of Boston 2024 over the past year and to Jim Braude and Margery Eagan who have asked me all the tough questions. Thanks too to Andy Larkin, Enno Gerdes, Liam Kerr, Kelly Gossett, Lisa Genasci, Ted Cartselos, Dan Gardner, Stan Rosenberg, Bill Straus, Elizabeth Warren, John Henry, Malcolm McNee, Arthur MacEwan, Doug Rubin, and Peter Kwass for their conversations and insights. Bill Finan and Valentina Kalk at Brookings Institution Press have been supportive and an utter delight. Finally, big gratitude and love as always go to Shelley, Alex, Ella, Jeff, and Mike for being so supportive and interested in my work.