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The cost would balloon. It’s already hard enough — some events are held in other cities, for example in 2012 the football tournament took place at various places in the UK, the mountain biking, sailing etc away from London.
But the broadcasting and press rely on a centralised facility. The International Broadcast Centre collects the production crews, studios and equipment of most of the Olympic broadcasters, requiring dedicated fibre links (redundantly duplicated) from the venues — including commentary — and dedicated satellite and IP uplinks back to their own countries.
It’s complex enough in one region, but an Olympics split between several main locations would be nigh on impossible to run efficiently. There would have to be crews in each location (many broadcasters don’t attend all sessions in person, working remotely), studios at each city for interviews and presentation, ENG crews spread all over the place etc. It would freeze many broadcasters out of the process as they wouldn’t be able to handle it.