The White Elephant that is the Olympics

This afternoon, the International Olympic Committee will make its big announcement on where the 2016 Summer Olympics will take place. It is the culmination of several years of IOC sanctioned "bribery" and backroom politics. Recently heads of state have been getting in on the action as well. Vladimir Putin was heavily involved in the lobbying that won Sochi, Russia the 2014 Winter Games and Barack Obama traveling to the IOC convention in Copenhagen to support Chicago's 2016 bid. Potential host cities spend almost $100 million dollars in an attempt to make a winning bid. Only one will be chosen, so for four cities, this money is down the drain.

Then the big spending begins. Billions of dollars will be spent by the host city to construct venues, improve infrastructure, and provide security for the games. Much of this money comes from corporate sponsorships, but a large chunk is paid for by municipal governments. After the inevitable cost overruns, the municipal governments and citizens by extension are on the hook for the cost. The Vancouver games are already $45 million overcost on construction, which will come out of the taxpayer's pocket. The citizens of Montreal finally finished paying off the 1976 games, in the late 1990s.

The question to ask is: are the Olympic Games worth all the trouble for the host cities. ESPN.com's Jim Caple provides an interesting viewpoint on this question in his column for ESPN Page 2.