Olympics bid boosted

New York's bid for the 2012 Olympic Games is threatened by a row over plans to build a new stadium in the heart of Manhattan - giving London's hopes a big boost.

A growing coalition of residents and small-business owners is determined to block the £1billion New York project which would involve flattening a 50-block area on the city's West Side.

With no starting date for construction and uncertainty over who will pay for much of the huge building costs, even the slightest delay could sink the New York bid, leaving the way clear for a headto-head fight between London and Paris.

Plans for a 74,000-seat stadium with a retractable roof were announced yesterday, only weeks before a decision by the International Olympic Committee to whittle down the number of cities competing to be host from nine to five.

New York officials knew their bid would be doomed without a firm proposal for a new stadium for athletics and the opening and closing ceremony.

However, optimism that the IOC would be impressed by the city's plans have been dashed by reaction to the stadium, which would overlook the Hudson River to the west of the Empire State Building.

Local councillor Christine Quinn warned: "There are a lot of problems ahead." Residents' groups are also preparing to dig in for a court battle to block the stadium - a move that could drag on for years.

They are likely to be backed by cable operator Cablevision, which owns Madison Square Gardens indoor arena.

The company is said to be ready to launch a major campaign against the project, which it fears will compete for many events held at its own site nearby.

John Fisher, a spokesman for a coalition of local groups opposed to the stadium, called it "nothing more than hype in search of substance".

Questions have been raised about who will pay for the arena. At present, about half the money - £500 million - is set to come from American Football club the New York Jets which will play its home games there. But the club must still find the money, with the rest due to come from New York's cash-strapped state and city governments, almost certainly through unpopular new taxes.

Opponents accuse New York's mayor Michael Bloomberg of subsidising a wealthy sports club at the expense of schools and parks. A final decision will be made by the IOC in July next year.