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Olympic Model Faces Crisis After Milan-Cortina Cancellation

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  Published in Business and Finance on Friday, February 20th 2026 at 14:52 GMT by The Straits Times
      Locales: ITALY, UNITED STATES

The Unraveling of the Traditional Model

The traditional Olympic model relies on host cities making massive, upfront investments in new infrastructure - stadiums, arenas, transportation networks, and athlete villages. These investments, often justified by promises of economic benefits and tourism boosts, rarely materialize to the extent predicted. Instead, cities are often left with underutilized venues and substantial debt. The escalating costs are fueled by increasingly elaborate event requirements, security concerns, and demands for state-of-the-art facilities. The bid process itself has become fiercely competitive, requiring significant expenditure just to attempt to win the right to host.

The Milan-Cortina case highlights these flaws perfectly. Construction delays plagued the project, driving up costs. Environmental groups raised valid concerns about the impact of building new venues in ecologically sensitive areas. Ultimately, the Italian authorities concluded that the financial burden was simply too great, leading to the unprecedented cancellation - just two years before the scheduled opening ceremony. This decision has sent shockwaves through the sports world, sparking immediate calls for radical reform.

LA28: A Blueprint for Sustainability?

LA28 presents itself as a stark contrast to the recent Olympic experiences. The organizers are prioritizing a pragmatic approach, focusing on leveraging existing venues wherever possible. This drastically reduces the need for new construction, lowering both costs and environmental impact. The plan also incorporates a degree of flexibility, with some events potentially held outside of Los Angeles, utilizing existing sporting facilities across the United States. This dispersed model could further reduce infrastructure costs and broaden the Games' appeal.

"LA28 represents a significant departure from the traditional Olympic playbook," explains sports economist Simon Chadwick. "Their emphasis on using existing infrastructure and avoiding massive capital investments is a crucial step towards making the Games more sustainable and financially viable. However, it's not just about cost-cutting; it's about demonstrating that the Olympics can still deliver value to a host city without bankrupting it."

The success of LA28 isn't guaranteed. The organizers will need to navigate complex logistical challenges, manage public expectations, and ensure a seamless experience for athletes and spectators. They also face the challenge of maintaining enthusiasm in a world increasingly focused on sustainability and responsible spending.

The Future of the Games: A Critical Juncture

The stakes for LA28 - and the IOC - are exceptionally high. If Los Angeles can deliver a successful, cost-effective, and engaging Olympic Games, it could provide a much-needed template for future hosts. This would involve demonstrating that the Games can be a catalyst for positive change without imposing an unsustainable financial burden on the host city.

However, if LA28 falters, or if the Games remain prohibitively expensive and logistically complex, the future of the Olympic movement could be bleak. We may see fewer cities willing to bid, a decline in public interest, and a continued risk of cancellations. The IOC must proactively address the fundamental issues plaguing the Olympic model - affordability, sustainability, and public engagement - or risk seeing the Games become a relic of the past.

The cancellation of Milan-Cortina is a wake-up call. The IOC can no longer afford to ignore the growing financial and logistical challenges facing potential host cities. LA28 has the opportunity - and the responsibility - to prove that the Olympic dream can still be realized in a sustainable and responsible manner. The world will be watching closely.