The U.S. Olympic Committee must pay $3.3 million for a failed international sporting event that was billed as a run-up to the 2008 Olympics in China.

An arbitration panel ruled the Colorado Springs-based USOC didn't live up to its responsibilities for the Games of the Pacific Rim, scheduled for June 2005, according to a document filed this week in the U.S. District Court for Colorado.

"The failure of the event to occur lies at USOC's door," the document states.

The USOC entered into an agreement in 2004 with a Seattle sports promoter and an organizing committee for the Games of the Pacific Rim.

The event was expected to attract 900 athletes from nine countries, including Australia, China, Russia and the United States.

The USOC also suggested there might be follow-up events in 2006 and 2007, according to court documents.

But it soon became clear not everyone at the USOC was committed to making the event a success, the arbitrators found.

News conferences were delayed, television arrangements weren't made and branding for the event wasn't completed.

Cash flow soon became a "serious problem" for the Seattle committee, which was unable to sell tickets to the event, the arbitration agreement states.

The USOC terminated the event in late March 2005 - about two months before the Games were to begin - then filed arbitration seeking $1 million in damages from the Seattle-based committee, arguing a breach of contract.

But the arbitrators found it was the USOC that didn't meet its obligations.

It ordered the committee to pay about $3.5 million in damages, minus $250,000 already advanced to the Seattle committee by the USOC.

The arbitration agreement, filed Tuesday in federal court, awaits a final signature of approval from U.S. District Judge Edward Nottingham.

The USOC did not respond to voice and e-mail messages Wednesday.

burnetts@RockyMountainNews.com or 303-954-5343