As Rome Goes, So Will Other 2020 Bids?

With only hours left to go before the IOC deadline for applications from the cities bidding for the 2020 Olympics, Rome has become the first casualty, unable to summon the support of Prime Minister Mario Monti.

Despite entreaties from bid boosters that a Rome Olympics would not be a drain on the Italian economy, Monti was unmoved. Chosen in December to lead Italy through its debt crisis, Monti has been talking budget cuts and austerity, seeking to restore confidence in the country's economy. He met last week with U.S. President Barack Obama, conducted interviews with major financial media. Monday he met with Germany’s president and business leaders.

For Monti, it was hard to promise austerity and then announce a bid for an Olympics.

Monti’s decision to forego the bid came after a weekend of turmoil in Greece, host of the 2004 Games. As Greek politicians faced the difficult task of passing unpopular cuts, rioters burned buildings in the center of Athens. The 2004 Olympics and the spending binge that came with the Games is viewed as part of the reason Greece faces its economic crisis.

Monti, who will leave office next year, apparently wants to be sure he is not responsible for sending Italy down the same road as Greece, post-Olympics.

IOC member Richard Carrion, a banker and chair of the IOC Finance Commission, says he was "surprised" by the turn of events for Rome.

"They obviously have issues, if they don’t have the backing of the government to move ahead," said Carrion. He says no bid for the Olympics can be considered unless there is full backing from all levels of the government.

"Privately financed Games are not feasible or prudent. They must have the full support of national and municipal authorities," says Carrion.

Carrion says the IOC is likely to increase the scrutiny it pays to finance issues for the five cities remaining in the race for 2020 – given the circumstances of the world economy.

Economist Thomas Cooley of New York University tells Around the Rings he agrees with Monti’s move.

"I think Monti sets a good example," he says.

"I think Italy and Spain are right to question the use of public funds in support of their bids for the Olympics. Even if the case could be compellingly made that there would sufficient payoffs in the long run, these countries are faced with increasing austerity and growing unemployment and they are asking their citizens to take a big hit," he says.

"One might reasonably ask what Greece feels about its investment at this point," notes Cooley.

The collapse of the Rome bid may have come too late for any of the remaining five cities in the 2020 race to consider pulling the plug for the same reasons. But for two of them - Madrid and Tokyo – national support may be a future complication.

Both bids are creatures of their respective municipal governments that have had to seek the support of new national governments formed after the bids were well underway. While they seem to have that support for now, it remains to be seen whether worsening conditions for Spain and Japan could sever support from the national government before the IOC votes for the 2020 host in 2013.

Spanish Prime Minister Mariano Rajoy is battling 20 percent unemployment without signs of a turnaround. In Japan, PM Yoshihiko Noda faces a shrinking economy and the aftermath of last year'stsunami and nuclear disaster.

The finances of Azerbaijan, Qatar and Turkey aside, the bids from Baku, Doha and Istanbul are less likely to suffer a disconnect of national support. The three cities are bidding as a result of the urging of their heads of state, their support unquestioned.

And while the loss of Rome from the 2020 field (perhaps even a front-runner candidate) might seem to be a blow to the IOC, Carrion is sanguine. He says there are plenty of cities around the world in the size range of three to five million in population that could be suitable candidates "who have yet to host the Games".

A Gracious Exit for Rome 2020

A farewell from Rome 2020 chairman Mario Pescante who expressed his disappointment with grace at a press conference after hearing Monti’s decision.

Pescante, former president of CONI, currently an IOC vice president, has worked on the bid for two years until it skidded to a stop.

"Rome was the first city to announce its candidacy for 2020, and we did so with a sincere belief that once again, Rome could be a unique turning point for the Olympic Movement, just as we were for the 1960 Olympic Games," said Pescante.

"But life, as in sport, is often determined by events beyond one’s control so we must responsibly accept the decision of our government and refocus our energies on the broader goals of Italy itself," he said.

Written by Ed Hula.