The two main stadiums for the Sydney Olympic Games were developed by the private sector with State assistance to reduce government costs and risks. In the post-Olympic period, both stadiums have experienced major revenue shortfalls which threaten their viability. This has been caused by competition from pre-existing, though smaller, State-owned stadiums and lack of potential major sporting and other events. In part to help the Olympic stadiums, the government produced a masterplan for major urban development at the Olympic Park. This paper illustrates the risks of partnership development of specialized infrastructure, and the way in which special events can lead urban development.