Why are major sports events trapped in the winner's curse? A case study of the 2017 World Road Cycling Championship

Abstract

Purpose

This paper sought to determine how a major sport event can become trapped in a winner's curse, in which the fierce competition to host the event forces organisers to spend more on acquiring and hosting it than what it is worth in economic terms.

Design/methodology/approach

This study used a combination of document analysis and 47 in-depth interviews with 51 individuals representing various private and public organisations involved in the implementation of the UCI 2017 Road Cycling World Championship. Snowball sampling and a semi-structured interview guide were used to ensure coverage of all relevant information.

Findings

The organiser and the host municipal lacked the necessary experience with events of this size and character. Information from previous championships events was not transferred, and the municipality administration did not utilise experiences from hosting previous events. Limited financial resources prevented the organiser from hiring enough employees with the necessary competence. Lack of communication between the stakeholders who contributed in hosting the event reduced the quality of planning and preparations. A dubious culture and lack of seriousness within the Norwegian Cycling Federation, which was the owner of organising company, seemed to have been transferred to organiser.

Originality/value

The research identifies some of the reasons why major sports events so often turns out to be more problematic than expected in economic terms, not only for the organiser but also for actors in the public sector in the host city. The novelty is that it goes into depth on the underlying reasons and the dynamic forces behind these problems.

Citation

Solberg, H.A., Becker, D.M., Denstadli, J.M., Heldal, F., Knardal, P.S. and Thøring, T.A. (2022), "Why are major sports events trapped in the winner's curse? A case study of the 2017 World Road Cycling Championship", Sport, Business and Management, Vol. 12 No. 4, pp. 403-420. https://doi.org/10.1108/SBM-12-2020-0132