"The Globe is reporting that Toronto should bid for 2015 Pan American Games.
Smaller in scale, cheaper to fund, yet also provides lasting legacies in terms of new sporting infrastructure. I think we should go for it."
I'm not sure I agree. Everyone who says sporting event X is cheaper to host than the Olympics doesn't also look at the revenue side of things, but only the investment/expenditure required. If we were to host the PanAm games, and contruct venues to Olympic specifications, we'd be spending on venues what we would for the Olympics, but foregoing almost all the corporate sponsorship and TV broadcasting right revenues... amounts that approach $2 billion. If the host city is sensible, they in essence get their venues for free. Toronto's venue plan for 2008 called for $750 million in venue construction costs. Let's say they were too conservative and it would cost 50% more than that. Then after the IOC's transfer to the organizing committee, we would be $250 million - $750 million ahead. The operating costs are largely covered by ticket sales and merchandising, with security costs traditionally borne by the national government. Infrastructure investments (transit, beautification, etc.) shouldn't really be attributed to the Olympics as a cost, or at least not as a negative.
Now, with PanAm, we receive corporate sponsorship and TV rights approaching nil, and still need to construct at least $500 million in venues. Same goes with Commonwealth Games...
Even then, the marginal tax revenues generated by hosting the Olympics and the massive injection of foreign funds (tourism; 50,000+ international visitors; sponsorship and merchandising) more than makes up for government outlays necessary for hosting. If the host city is sensible and already has strong infrastructure (such as Toronto has), could host an Olympics that would be an unqualified economic boon to the city. I would argue that London and Beijing threw sense out the window, and for their own reasons--I don't think the same thing would happen here. Particularly, the Canadian government isn't aching to be seen as lavishing funds on this city. Only enough to ensure Canada as a nation is not embarassed.