Losing Olympic Bid a Blessing in Disguise?
This report was filed by CBS News producer Amy Guttman in London.
But those economic rewards would have been hard-won in light of the worldwide recession.
Great Britain's capital will host the 2012 Games and, even with three years to go, the budgetary hurdles are proving too high.
At left: A view of the London 2012 Olympic athletics stadium, London, Sept. 29, 2009.
London last hosted the Olympics in 1948, when times were tight after World War II. Those games were nicknamed the "Austerity Olympics."
Now, more than 60 years later, the label fits all over again.
With marketing budgets flat, or down, several big-name brands have failed to renew their corporate sponsorship deals. Bank of America, General Motors and Home Depot are just a few of the Fortune 100 companies already dropping out as big American backers of the games.
Many wonder whether hosting the Olympics will actually do more harm than good for London's local economy and British athletes competing.
Sports budget cuts have been as deep as 75 percent, with the eight British Olympic teams least likely to win medals taking the biggest hits. The decision to cut funding may well have damaging effects on Britain's performance at the 2012 Games, and beyond.
Amy Guttman has the full story from Britain's National Aquatic Center, in Manchester: