POSTED: September 10th 2010

IOC and USOC agree $18m step on road to new cash-split deal

Larry Probst: USOC president happy to be making headway / lake images
Larry Probst: USOC president happy to be making headway / lake images

KEIR RADNEDGE / Sports Features Communications

LONDON, Sep 10: A year too late for Chicago’s ill-fated bid to host the 2016 Games, a compromise deal has been hammered out between the IOC and the United States Olympic Committee.

Reports from Colorado Springs and from Lausanne, home of the International Olympic Committee, claimed that the USOC has agreed to contribute $18m towards Games staging costs. The two sides have also confirmed the agreement reached last year at SpordAccord in Denver to launch negotiations in 2013 over a new revenue-sharing agreement to come into effect from 2020.

Irritation in Europe, Africa and Asia over the US-weighted terms of the current open-ended revenue agreement was an issue which cost Chicago votes. Even the support at last October’s IOC Session in Copenhagen of President Obama, then at the height of his international popularity, could not save the situation.

Chicago was eliminated in the first round of voting which saw Rio de Janeiro ultimately chosen to host the first South American Games.

Under the outgoing agreement the IOC delivered to the USOC 12.75pc of the domestic television rights fees and 20pc of the domestic marketing income from the TOP sponsorship programme. The broadcasting deal for the Olympics in the US is the single largest revenue source of the IOC. Thus the USOC was receiving more from the North American broadcasting rights deal and the TOP programme than all other 200-plus Olympic committees put together.

Confidential information

The USOC and IOC refused to discuss terms of the revision though sources close to the negotiations have suggested the $18m figure. An IOC statement said only: “The IOC and the USOC have reached agreement on a significant financial contribution from the USOC to resolve the Games' costs issue.”

The statement added: “During a very productive and amicable meeting at the Youth Olympic Games in Singapore last month, the two sides also agreed to establish a process to accelerate talks on the outstanding issue of revenue sharing.

“The agreement followed fruitful discussions in Denver, Colorado, last year and at the Vancouver 2010 Olympic Winter Games this February. The IOC and USOC delegations have pledged to continue working in a constructive manner and in a spirit of good faith and cooperation."

USOC president Larry Probst said: “I am pleased that our relationship has progressed to the point where we can begin to make significant headway on a number of issues that have been a point of contention.

"This agreement demonstrates that when people work together constructively to develop innovative solutions to challenging problems, the future of the Olympic Movement will benefit.”

Keywords · USOC · IOC · revenue · Chicago · President Obama

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