Having lost bronze, Farah in Mediterranean city? (7)
I believe the answer is:
palermo
'mediterranean city?' is the definition.
'having lost bronze farah' is the wordplay.
I cannot quite see how this works, but
'lost' could be 'l' (abbreviation in sporting league tables) and 'l' is located in the answer.
'farah' could be 'mo' (Sir Mo Farah, British Olympian) and 'mo' is found within the answer.
This explanation may well be incorrect...
'in' is the link.
(Other definitions for palermo that I've seen before include "Capital city of Sicily" , "Chief port of Sicily" , "ity of Italy" , "Sicilian capital" , "Italian city" .)