The Olympic loss stunned many in Chicago and, of course, Mayor Daley.
"I was shocked, I was disappointed, I couldn't believe it," said Daley. Watch Daley's full comments
Afterwards, the man who has been in office 20 years, looked ahead, once again.
"You move on...you move on in life. People have challenges everyday...this is a challenge. Yes, you stumble. You pick yourself up and you move on," said Daley.
Moving on means coming back to City Hall and working on a budget that already has a nearly $600 million deficit.
"We're going to have to cut costs and that means reduce services," said Ald. Brendan Reilly, 42nd Ward.
It's unclear if that could affect the Mayor's approval rating, which has dropped to 35 percent, according to a recent Tribune poll.
"Politically, he's probably at his most vulnerable," said Rachel Goodstein, community activist.
"I actually think the poll numbers will go up because he presented a good case for the city," said Dick Simpson, University of Illinois at Chicago.
Professor Simpson also says that Mayor Daley's legacy does not depend on the 2016 Olympic bid. Instead, he points to the Mayor's influence on projects like building Millennium Park, improving Navy Pier, and expanding McCormick Place.
"He did see us through the transition to becoming a global city. Much of that happens in the private sector, but City Hall has been supportive of that transition," said Simpson.
On Friday, Mayor Daley faced a loss on the global scene but returns home, spirit in tact.
"The marketing here, what we did, not with government money, with private money - was enormous for our city and for our country. And that's what I'm proud of," said Daley.