Rome 2020 Debts Signal Trouble Ahead for Olympic Ambitions

(ATR) A year after the demise of Rome 2020, Around the Rings has learned the Olympic bid is close to bankruptcy, ex-bid officials have launched lawsuits and consultants have not been paid.

On Feb. 14, 2012, Italian Prime Minister Mario Monti dramatically pulled the plug following evaluation of the costs and benefits of bidding for the Games.

Monti had come into office in December 2011 faced with turning around the flagging Italian economy. He said spending cuts made it difficult for him to approve a 2020 bid but suggested a pitch for the 2024 Games was more realistic when Italy’s economic fortunes had recovered.

Such optimism now seems hopelessly misplaced, with a bid further away than ever. ATR is told that the Rome 2020 accounts are in complete disarray.

The bid cost an estimated $8.75 million. According to one source close to the bid, the Italian National Olympic Committee and city of Rome have yet to cough up money that was budgeted – $2.7 million and $1.3 million, respectively.

In June 2012, the Rome 2020 board ended its work with the committee owing millions of dollars to bid officials and consultants recruited to aid the ill-fated campaign.

Among those owed money is Atlanta-based Helios Partners, which helped create a bid strategy that never got used.

ATR is told that Ernesto Albanese, the bid’s former managing director and other bid officials have taken their grievances to court. According to La Gazzetta dello Sport, Albanese claims he is due payment through to December 2013; these claims were disputed by leaders of the bid board and mayor when they finalized the budget.

Under Italian law, until these case are resolved, liquidators appointed by CONI and the Rome Municipality cannot pay anybody.

"No one has been paid after February 14 [2012]," the source tells ATR.

"Nobody in CONI – with the new election coming – wants to solve the problem but this is making CONI lose its credibility. And the mayor is always talking about a new candidature [for the Olympics]," he said.

He said it was likely that the Rome 2020 bidding company would go bankrupt with the judge appointing his own liquidator.

"It is a shame for Italian sport and Rome is dreaming to be a candidate for 2024."

The Rome 2020 financial saga is unlikely to be resolved any time soon.

Next week’s CONI elections and May elections for the mayor of Rome add further complications.

CONI secretary general Raffaele Pagnozzi is standing for president of the NOC; board member Giovanni Malagò is challenging him in the Feb. 19 election. "It’s very open," the source said.

Gianni Alemanno, who is seeking re-election as mayor, has been talking up a possible Olympic bid for 2024 as part of his election campaign in recent weeks and months.

The Italian source is downbeat about any bid materializing. He told ATR that the Rome 2020 crisis has dealt Italy’s global sporting reputation a damaging blow from which it would be difficult to recover in time.

"I don’t believe there will be a bid for 2024," he concluded.

Reported by Mark Bisson

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