Oil prices force Mexico to pull out of hosting 2017 world championships

Guadalajara organisers said they could no longer afford to stage the two-week event, which costs around $100 million, after the Mexican government cut its 2015 budget by nearly three percent as slumping crude oil prices pressure public finances.

The government relies on oil revenue to fund about a third of its budget.

Guadalajara's withdrawal comes just over a week after the Canadian city of Edmonton pulled out of the race to stage the 2022 Commonwealth Games, also citing the drop in oil prices.

Jesus Mena, the director of the Mexican National Commission for Physical Culture and Sport, said in a statement he had broken the news to swimming's world governing body.

"After reviewing the budget, we have determined that we must inform FINA that Mexico cannot host the world championships," Mena said.

Mena said the city had already spent $9.5 million preparing for the championships and may have to pay a $5 million fine to FINA for pulling the plug.

Guadalajara was awarded the championships in 2011 after FINA picked the 2015 and 2017 hosts simultaneously. The Russian sports city of Kazan was awarded 2015 while Hong Kong missed out on both.

FINA has since awarded 2019 to Gwangju, South Korea and 2021 to Budapest but has not yet said who will replace Guadalajara.

This is the second time the host of swimming's showcase event has dropped out. Dubai was selected for the 2013 world championships but withdrew and was replaced by Barcelona.

The United States, has never hosted the championships and officials said they had no plans to bid for 2017 even if it could potentially boost Boston's bid for the 2024 Summer Olympics, which will be decided in 2017.

"We would love to host a long course world championships in the United States, but the economic requirements make it impossible for us to seriously consider," Chuck Wielgus, USA Swimming Executive Director, told Swimming World.

Australia, which hosted the world swimming championships in 1991, 1998 and 2007, said it was unlikely to bid for 2017 but did not rule out the possibility.

Australia also staged the Olympics in 2000 and is hosting the Commonwealth Games in early 2018 so has the facilities but the cost remains decisive.

"It is unlikely given the required investment required by many partners to deliver an event of this magnitude successfully and the relatively short time frame," a Swimming Australia spokesperson told Reuters.

"However, we would be open to having discussions with FINA should there be interest in Australia stepping in to assist.

"There is no doubt that we have the venues and expertise to host such an event, evidenced in Melbourne hosting the event in 2007."

The enormous costs of staging international sports events has become a hot topic after oil and gas-rich Qatar was awarded the 2022 soccer World Cup.

The tiny but ambitious Gulf Arab state was awarded last year's short-course world swimming championships and the 2019 world athletics championships, beating rivals bids from Europe and North America.

The reduction in countries bidding to stage major events has forced sporting bodies to offer cheaper solutions.

Last year, the International Olympic Committee overhauled its bidding requirements after four of the six candidates for the 2022 Winter Olympics withdrew, leaving just Beijing and the Kazakhstan city Almaty in the running.