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change the approach to development, large sporting events
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EQUALS CHANGE BLOG (/IDEAS/EQUALS-CHANGE-BLOG/)

Why the Olympics and other major sporting

events usually increase inequality in the host city

Stefan Norgaard, Stanford University Tom Ford Fellow in Philanthropy

1 AUGUST 2016

This Friday, all eyes will be on Rio de Janeiro as it hosts the 2016 Summer Olympic Games. While everyone will be
watching and rooting for the athletes from their countries to win gold, few will realize that the ones really losing out are
residents of Rio from low-income and working class communities. (/ideas/equals-change-blog/posts/2016-olympicgames-what-rio-doesn-t-want-the-world-to-see/)
This is because the development model for major international sporting eventslike the Olympics and the World Cup as
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well as countless national sporting leagues like the NFLrarely benets all residents
of the
where
the games are

held. For example, even though the city of Rio promoted (http://www.nytimes.com/2016/06/25/sports/olympics/as-theFirst name
Lastthe
name
olympics-near-brazil-and-rio-let-the-bad-times-roll.html?_r=2) the Olympics to residents
by arguing that hosting
games would increase tourism and lead to major urban infrastructure improvements, the likely result will be billons in
losses (http://www.nytimes.com/2014/08/10/magazine/does-hosting-the-olympics-actually-pay-o.html?_r=1). In fact,
E-mail
thousands of low-income Brazilians have already been displaced
(http://www.npr.org/sections/parallels/2014/02/27/276514012/as-brazil-gears-up-for-olympics-some-poor-families-getMore Subscription Options (/e-mail-updates/)
moved-out) in order to build infrastructure for the games that will largely only benet wealthy communities. In addition,
several contracting companies for the Olympics now face corruption allegations (http://www.reuters.com/article/usSUBMIT
DON' T SHOW THIS AGAIN
olympics-rio-corruption-exclusive-idUSKCN0YG2WT). What was seen as an opportunity to democratize development in
Rio has instead become an opportunity for city ocials to justify actions that would otherwise never be tolerated
(http://www.vox.com/2016/6/27/12026098/rio-olympics-2016-removals-eviction)like human rights abuses, forced
evictions, and hiding poor people and neighborhoods away from view.

Sporting events and inequality

These challenges are not unique to Rio or the Olympics. During the preparations for the 2010 World Cup in South Africa,
FIFAthe governing body for international soccerdiscouraged (http://www.nytimes.com/2014/06/25/opinion/molefesouth-africas-world-cup-illusions.html) local authorities from upgrading an existing soccer stadium in a working-class
neighborhood of Cape Town. The local government had wanted to modernize this stadium and invest in infrastructure in
its surrounding neighborhood because it would help reduce inequality in the city. Instead, FIFA forcibly urged and got
local authorities to agree to build a new World Cup stadium in a wealthier section of the city. In Cleveland, owners of the
Quicken Loans Arenahome of the NBAs Cavaliersrequested a 50/50 public-private funding split for the arenas
construction amid critical nancing concerns for the healthcare system, justice system, and other government agencies
in the country surrounding Cleveland. And across the United States, the Federal Communications Commissions Nixon
Rule (http://www.sportsfans.org/agenda) allows NFL franchise owners to black out games from being locally televised if
high-priced tickets do not sell out even though the stadiums where these football games are played are oen built with
taxpayer money. As a result, it can sometimes be nearly impossible for city residents to watch their home teams play in
person or on TV.
Public spending for large sporting events is oen justied through an economic development model that says investing

in the infrastructure, marketing, and preparations for these events will benet everyone. But time and time again we see
that with large sporting events, only a select fewusually wealthier and more privileged members of the community
benet at the expense of everyone else.

An equitable development model for sporting events

Cities and communities do not have to displace their working class residents to build sports stadiums and venues. They
dont have to funnel public funding away from public goods or only build infrastructure in wealthy areas in the name of
economic development. Instead, cities can adopt an equitable development model for urban planning, which ensures
that all city residents have a chance to benet from major sporting events.

What would such an approach look like? For starters, there should be a push for the Olympics and other major sporting
event bids to more centrally take into consideration the impact of these events on low-income communities and the
general public. These international bodies should allow and empower civil society groups to comment on Olympic
development plans at an early stage. It is important to note that major sporting event planning and the Olympic bidding
process oen start years before construction even occurs (http://www.citylab.com/politics/2012/07/why-hosting-olympicsbad-cities/2689/). So in theory there should be plenty of opportunities to engage with civil society and broader
communities on proposed development plans. However, the Olympics has a compressed and frenzied bidding process

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that prevents broad citizen involvement and long-term planning. And once a bid is
awarded
a host
city, planners rarely

want any input that would derail their already-approved plans.

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While the Olympic host cities have generally not had a strong track record of creating long-term social and economic
benets for everyone, there are some instances where host cities have intended to do good for the broader community.
E-mail
For example, the 2012 London Olympic Games included a proposal to turn the Olympic
Village into 6,000 units of
aordable housing. Unfortunately, development for the games also led to widespread evictions
(http://www.bbc.com/news/uk-england-london-17986383). Urban regeneration schemes
for Canary Wharf
and
elsewhere
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in East Londonwhere the games were mostly centeredhave led to intense gentrication

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(https://www.theguardian.com/cities/davehillblog/2015/jul/23/london-olympic-legacy-three-years-on-2012-games) post-

Olympics. And while the London Olympic Planning Committee had good intentions, the results have been quite uneven.
In hosting the 1992 Olympic Games, the city of Barcelona leveraged the opportunity to develop a comprehensive urban
renewal plan (http://www.theguardian.com/politics/2002/dec/08/athletics.olympics2012) that helped create new jobs and
transform the citys deteriorating infrastructure by building a new airport and telecommunications network and
improving the sewage system.

Philanthropys role in promoting equitable development

What can philanthropy do to ensure to equitable development models for major large sporting events and arenas benet
everyone? Here are some possible courses of action:

Li up untold stories of injustice. For example, Fords investigative journalism grantees,

such as Agencia Publica (http://apublica.org/), are working to nd cases of injustice related
to the Rio Olympics and tell them to a broader public. They recently launched a project on
the recent militarization (http://apublica.org/2016/06/forcas-armadas-querem-usarbloqueadores-de-celular-contra-drones-hostis-e-terrorismo-na-olimpiada/) of the Rio police
in advance of the games.
Convene organizations and make civil society connections. What is happening in Brazil is
far from unique and philanthropy can connect grassroots and civil society organizations in
Rio with organizations in Cape Town, Athens, Qatar, the United States, and elsewhere.
Groups can share common stories, brainstorm potential solutions, and consider new
global development models for the Olympics, World Cup, other major sporting events, and
domestic sporting leagues.
Build community capacity to engage in urban development policies and debates.
Community organizations such as the Observatrio de Favelas (http://of.org.br/en) in
Brazil and the Sports Fan Coalition (http://www.sportsfans.org/agenda) in the United
States need critical capacity to build local power and to counter prevailing assertions that
major sporting events always leave lasting social and economic benets for everyone. The
Ford Foundations commitment to building institutions and networks
(http://www.fordfoundation.org/ideas/equals-change-blog/posts/why-we-need-strongsocial-justice-institutions-and-how-to-build-them/)seeks to support and grow social justice
institutionswhich oen outlive any one battle or campaignto do just this.

Major sporting events can ignite a citys spirit and civic capacity, can lead to a sense of citywide pride, and can certainly
help to increase tourism and economic stimulus. But major sporting events and projects only benet everyone when they
are deliberately designed to do so. If we change the approach to development, large sporting events like the Olympics can
reduce, rather than drive, inequality.

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