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Circus Maximus The Economic Gamble Behind Hosting The Olympics and The World Cup 2nd Edition Andrew Zimbalist
Circus Maximus The Economic Gamble Behind Hosting The Olympics and The World Cup 2nd Edition Andrew Zimbalist
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AN ECONOMIST BEST BOOK OF 2015
“Even appropriately jaded readers are likely to be shocked by the evidence …
which reveals the magnitude of the deception that precedes these events and
the disappointment that follows.” T
The Economist
ANDR EW ZIMBALIST
UPD
EXP ATED
AN &
DED
2ND EDITION
ANDREW ZIMBALIST
987654321
Postscript 145
Notes 165
Index 197
It’s 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: writ-
ing 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 way—which I came to appreciate as badges of honor.
ix
xi
River, it would be one of the most valuable pieces of real estate in the
country, if not the world. Using it for fewer than 5 percent of the days
of the year made no sense whatsoever.
And it made even less sense to the Shubert Organization. The sta-
dium would have been a few blocks away from Broadway’s theaters.
The Jets play most of their home games on Sunday afternoons— that’s
major traffic jamming the streets for Sunday matinees. A few evening
contests wouldn’t help either. If public funds were to be employed to
spiff up mid-Manhattan entertainment options, the Shubert Organi-
zation wanted to ask, how about some money to help maintain and
renovate Manhattan’s most venerable entertainment, the theaters of
Broadway?
Schoenfeld wanted me to do some economic analysis, some
writing, and some public speaking. I gave myself a crash course in
Olympic economics and decided that Dan Doctoroff was pushing an
unrealistic plan. Fortunately for New York City, the International
Olympic Committee (IOC) agreed. In 2005 the IOC announced its
choice of London to host the 2012 Summer Games.
In the years that followed, I continued to study the economics of
mega-events and was asked to consult for a few cities as they contem-
plated bidding and hosting. In 2012 I edited a book with the German
economist and Olympic gold medalist Wolfgang Maennig, the In-
ternational Handbook on the Economics of Mega Sporting Events,
which provided a more academic, discursive, and technical treatment
of the subject.
In February 2013, the United States Olympic Committee (USOC)
sent out a letter to fifty U.S. cities inviting them to bid to host the
2024 Summer Olympic Games. Boston was one of the cities to re-
ceive the invitation. It was not until several months later, however,
that Mitt Romney suggested to Massachusetts governor Deval Pat-
rick that Boston bid to be the host city. Patrick took the matter to
the state legislature, which in turn appropriated funds for a study to
be performed by a ten-member commission to be appointed by the
governor.
there are better terms to describe what the Olympics and World Cup
represented in 2014.
The New York Times editorial board member Serge Schmemann
has referred to the World Cup as “the battle for global primacy in
what Americans insist upon calling soccer.” As an American and an
avid New York Times reader, I cannot make a liar out of Mr. Schme-
mann. Throughout this book I use the word “soccer” to denote “As-
sociation Football,” to give the game its full title. 2 While “football”
is the more common term used in the United Kingdom and most of
the world, so as not to confuse it with American football, I demur. It
is sometimes thought that the word “soccer” is an American inven-
tion for precisely this reason, but that is not the case. According to
the Oxford English Dictionary, the first recorded use of the word
“soccer” was in 1889 by an English writer (although using a vari-
ant spelling, “socca”). The word has been commonplace in England
and elsewhere ever since. It is thought to be an abbreviation of “as-
sociation,” used originally to distinguish it from the game of “rugby
football,” also popular in England.3 The Fédération Internationale
de Football Association, or FIFA, is the governing body for interna-
tional play in this arena.
All of these arms, except those sent to the North Carolina Arsenal,
[12]
have been seized by the authorities of the several States of South
Carolina, Alabama, Louisiana and Georgia, and are no longer in
possession of the United States.
It will appear by the testimony herewith presented, that on the
20th of October last the Secretary of War ordered forty columbiads
and four thirty-two pounders to be sent from the Arsenal at Pittsburg
to the fort on Ship Island, on the coast of Mississippi, then in an
unfinished condition, and seventy columbiads and seven thirty-two
pounders to be sent from the same Arsenal to the fort at Galveston,
in Texas, the building of which had scarcely been commenced.
This order was given to the Secretary of War, without any report
from the Engineer department showing that said works were ready
for their armament, or that the guns were needed at either of said
points.
It will be seen by the testimony of Captain Wright, of the Engineer
department, that the fort at Galveston cannot be ready for its entire
armament in less than about five years, nor for any part of it in less
than two; and that the fort at Ship Island will require an
appropriation of $85,000 and one year’s time before it can be ready
for any part of its armament. This last named fort has been taken
possession of by the State authorities of Mississippi.
The order of the late Secretary of War (Floyd) was countermanded
by the present Secretary (Holt) before it had been fully executed by
the shipment of said guns from Pittsburg.[13]
It will be seen by a communication from the Ordnance office of the
21st of January last, that by the last returns there were remaining in
the United States arsenals and armories the following small arms,
viz:
Total 541,565
And the department has been unofficially advised that the arsenal
at Chattahoochee, Forts McRea and Barrancas, and Barracks, have
been seized by the authorities of Florida.
To what further extent the small arms in possession of the United
States may have been reduced by these figures, your committee have
not been advised.
The whole number of the seaboard forts in the United States is
fifty-seven; their appropriate garrison in war would require 26,420
men; their actual garrison at this time is 1,334 men, 1,308 of whom
are in the forts at Governor’s Island, New York; Fort McHenry,
Maryland; Fort Monroe, Virginia, and at Alcatraz Island, California,
in the harbor of San Francisco.
From the facts elicited, it is certain that the regular military force
of the United States, is wholly inadequate to the protection of the
forts, arsenals, dock-yards, and other property of the United States in
the present disturbed condition of the country. The regular army
numbers only 18,000 men when recruited to its maximum strength,
and the whole of this force is required for the protection of the
border settlements against Indian depredations. Unless it is the
intention of Congress that the forts, arsenals, dock-yards and other
public property, shall be exposed to capture and spoliation, the
President must be armed with additional force for their protection.
In the opinion of the Committee the law of February 28th, 1795,
confers upon the President ample power to call out the militia,
execute the laws and protect the public property. But as the late
Attorney-General has given a different opinion, the Committee to
remove all doubt upon the subject, report the accompanying bill, etc.
OTHER ITEMS.
Statement of Arms distributed by Sale since the first of January,
1860, to whom sold and the place whence sold.
SENATE.
HOUSE OF REPRESENTATIVES.
The above expressions from Lincoln and Black well state the
position of the Republican and the administration Democrats on the
eve of the rebellion, and they are given for that purpose. The views of
the original secessionists are given in South Carolina’s declaration.
Those of the conservatives of the South who hesitated and leaned
toward the Union, were best expressed before the Convention of
Georgia in the
This step (of secession) once taken can never be recalled; and all
the baleful and withering consequences that must follow, will rest on
the convention for all coming time. When we and our posterity shall
see our lovely South desolated by the demon of war, which this act of
yours will inevitably invite and call forth; when our green fields of
waving harvest shall be trodden down by the murderous soldiery and
fiery car of war sweeping over our land; our temples of justice laid in
ashes; all the horrors and desolations of war upon us; who but this
Convention will be held responsible for it? and who but him who
shall have given his vote for this unwise and ill-timed measure, as I
honestly think and believe, shall be held to strict account for this
suicidal act by the present generation, and probably cursed and
execrated by posterity for all coming time, for the wide and
desolating ruin that will inevitably follow this act you now propose to
perpetrate? Pause, I entreat you, and consider for a moment what
reasons you can give that will even satisfy yourselves in calmer
moments—what reason you can give to your fellow sufferers in the
calamity that it will bring upon us. What reasons can you give to the
nations of the earth to justify it? They will be the calm and deliberate
judges in the case; and what cause or one overt act can you name or
point, on which to rest the plea of justification? What right has the
North assailed? What interest of the South has been invaded? What
justice has been denied? and what claim founded in justice and right
has been withheld? Can either of you to-day name one governmental
act of wrong, deliberately and purposely done by the government of
Washington, of which the South has a right to complain? I challenge
the answer. While on the other hand, let me show the facts (and
believe me, gentlemen, I am not here the advocate of the North; but I
am here the friend, the firm friend, and lover of the South and her
institutions, and for this reason I speak thus plainly and faithfully for
yours, mine, and every other man’s interest, the words of truth and
soberness), of which I wish you to judge, and I will only state facts
which are clear and undeniable, and which now stand as records
authentic in the history of our country. When we of the South
demanded the slave-trade, or the importation of Africans for the
cultivation of our lands, did they not yield the right for twenty years?
When we asked a three-fifths representation in Congress for our
slaves, was it not granted? When we asked and demanded the return
of any fugitive from justice, or the recovery of those persons owing
labor or allegiance, was it not incorporated in the Constitution, and
again ratified and strengthened by the Fugitive Slave Law of 1850?
But do you reply that in many instances they have violated this
compact, and have not been faithful to their engagements? As
individual and local communities, they may have done so; but not by
the sanction of Government; for that has always been true to
Southern interests. Again, gentlemen, look at another act: when we
have asked that more territory should be added, that we might
spread the institution of slavery, have they not yielded to our
demands in giving us Louisiana, Florida and Texas, out of which four
States have been carved, and ample territory for four more to be
added in due time, if you by this unwise and impolitic act do not
destroy this hope, and perhaps, by it lose all, and have your last slave
wrenched from you by stern military rule, as South America and
Mexico were; or by the vindictive decree of a universal
emancipation, which may reasonably be expected to follow?
But, again, gentlemen, what have we to gain by this proposed
change of our relation to the General Government? We have always
had the control of it, and can yet, if we remain in it, and are as united
as we have been. We have had a majority of the Presidents chosen
from the South; as well as the control and management of most of
those chosen from the North. We have had sixty years of Southern
Presidents to their twenty-four, thus controlling the Executive
department. So of the Judges of the Supreme Court, we have had