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You’ve pretty much explained the details here. The UCI wanted to add BMX and MTB to the Olympics, partly because it would affirm their position as the global governing body for both, and the only way the IOC would approve it was if athlete numbers remained the same. That meant some events had to be ditched so we lost the IP and the Kilo.
andyp
I think I remember that the UCI had to drop some events
to allow BMX/MTB medals.
The IOC did not want to 'unbalance' the Olympics.
@andyp most certainly knows the details.