Benefits of hosting Olympics questioned

By almost any measure, the Olympics flunk basic economics.

The bidders spend lavishly and make costly promises. The winning city opens the vault to build stadiums, venues and villages that may have questionable value after the games. Local commerce is disrupted for years. Then there’s skyrocketing costs for payroll and security.

And it all happens with the knowledge that the whole venture will probably end up losing lots of public money.

But cities keep slugging it out to play host. Five are in the running for the 2012 Summer Games.

“On paper it doesn’t make sense,” said Larry Hadley, a University of Dayton expert in the economics of sporting events. “But with the Olympics there are many other factors than just the bottom line.”

Perhaps it’s the seduction of being in the world spotlight for more than two weeks to promote local attractions, culture and talents.

Or maybe it’s the work of developers, political ladder-climbers and other civic chieftains who stand to benefit from the Olympics. There’s also the still-solid faith in the Olympics as a springboard for the local economy and image.

“You need to keep it in perspective. Compared with a country’s total economic output, the Olympics cannot be the savior that some people believe,” Hadley said. “But nothing about the Olympics seems to be kept in perspective.”

Look no further than Athens.

The final price tag for the 2004 Olympics may approach $12 billion, including a record of at least $1.5 billion for security. The tally — nearly double estimates a few years ago — could haunt taxpayers for at least a decade, some analysts predict.

The massive upgrades needed for the Olympic homecoming gave Greece one of Europe’s fastest growth rates. But a post-Olympic slowdown looms. How steep and deep is what everyone is wondering.

“We are going to bankrupt Greece so big companies and big interests can get rich off the Olympics,” said Nana Vafidi, a leader of Athens’ small anti-Olympic movement. “This is the real Greek tragedy.”

Greece’s boosters hope to change the country’s reputation as a sunny but backward corner of Europe.

“We need to change perceptions of Greece to a place that’s modern and dynamic,” said Greece’s deputy finance minister, Petros Doukas.

NBC beefs up Web site

Too much information?

When it comes to the Olympics, NBC hopes not.

On top of its seven television outlets, the network that paid $793 million – give or take a bushel of cash – for broadcast rights also has upgraded its Web site to provide nearly instantaneous results, video and interviews.

“We started putting it together in October, which was a little later than ideal, and launched it on May 26,” said Evan Silverman, executive producer of NBC.com. “The traffic is beginning to build, and we’ll go from zero to 60 in August.”

Silverman expects to have 20 million unique visitors this month to accompany the network’s 1,210 hours of programming.

Web users will get to see video highlights – a first for NBC.com – with producers choosing and editing from 10 digital feeds from the major venues.

In addition to its broadcast network, NBC will be airing coverage on cable outlets MSNBC, CNBC, Bravo, USA, Telemundo and NBC HDTV.

Athens police crack down

Apparently no crime is too small as the city tightens up and cracks down in a massive security effort involving 70,000 police officers and soldiers.

Olympic organizers say that over the last two months law enforcement agents have checked more than 100 shops for illegal Olympic items – pins, hats, T-shirts and other souvenirs – and confiscated more than 100,000 trinkets seen as “offending the image of the Games – ethically, culturally and financially.”

Customs authorities also have sealed the borders and seized more than 20,000 imported items.