re: Why are Mr. Olympia Body Builders so respected?

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I was not aware they are currently not banned.

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Let me rephrase this. They are "banned" but they don't test. It's an untested event. The IFBB is a tested organization but only on some contests. There hasn't been a tested Mr. Olympia contest ever I don't believe. Your friend was not going to get tested at the Olympia.

While technically it is "cheating," they don't test because that is what they want. No organization in the world is going to out right say "Come in this organization! We allow steroids." It is known to many natural athletes to go to certain organizations because they do rigorous testing. This shows the organization does not want PED's.