While I certainly believe many sports events are really just a waste of money, Olympics is probably not.
Not only does it serve as a way to promote sports worldwide, boosting public health and inspiring people, it also is a remarkable feat of international cooperation, contributing to the relative peace and harmony.
Now, all those football leagues and stuff should really vanish. They cost way more than their benefit could ever be.
But it shouldn't be political. Get rid of the countries endorsement of said athletes, so that both israeli and russian athletes can compete, instead of deciding which one depending on political affiliation.
Of course that would turn the olympics into a purely individualistic endeavour¹, and funding for training athletes would likely fall on private enterprise² who would likely only fund already good budding athletes³ instead of funding schools and communities in general.
¹ - read: "Go Bell!" instead of "Go GB!"
² - read: replace country badges with BMW logos
³ - read: rich kids from good homes