Report shows ‘significant risks’ to Olympic bid, Baker says

A report on Boston’s now-withdrawn bid for the 2024 Summer Olympics found that officials may have underestimated potential venue costs by more than $970 million.

But the Brattle Group said in its report, “Given the structure of required financial guarantees, if Boston had been awarded the 2024 Olympic Games, the state and local governments-and ultimately Massachusetts taxpayers- would have borne significant financial risks of the Olympic Games”.

“Boston 2024 appreciates the work of the Brattle Group, however we respectfully disagree with some of their assumptions and analyses and have identified several misrepresentations and/or errors within the report”.

Going forward, House Speaker Robert DeLeo said, the report still could serve as a resource for the state as it seeks to spur economic development and improve Boston’s much-maligned transit system. That group released a 192-page report on Tuesday, highlighting an array of risks and errors. The organizers say the consultants’ report was a “simple comparison” between Boston’s plan and those of past host cities.

“This is a critical, almost half-billion dollar error on the part of the Brattle Group”, the statement said.

– The Brattle Report states that Boston 2024 “disclosed no detail on the potential costs of the Paralympics”. Our budget estimate was to lease and retrofit space only, while London’s cost included construction of a brand, new permanent facility. Boston 2024 also reported to the Brattle Group that ticketing revenue from the Paralympics was projected at $75-80 million and that Paralympic sponsorship revenue in London was roughly $300 million. The consulting firm “never mentioned” that the last three Olympic Games in the U.S. were privately funded and “all had surpluses”, the response said.

This, coupled with Massachusetts Governor Charlie Baker’s refusal to commit himself to backing the bid until the publication of the Brattle Group’s report, forced USOC into action.

Boston’s bid was terminated by the United States Olympic Committee in July amid taxpayer concerns over footing a hefty bill and Mayor Marty Walsh’s refusal to sign a host contract before gaining further information. Los Angeles has stepped up as a likely alternative to bid for 2024.