POSTED: May 24th 2012
SportAccord: USOC and IOC finally reach epic revenue share agreement
LAURA WALDEN in QUEBEC / Sports Features Communications
May 24 – At last the US Olympic Committee (USOC) and the International Olympic Committee (IOC) have reached an agreement on the long standing revenue sharing dispute. In a twist of fate the SportAccord convention years ago proved to be the venue of choice for the start of talks and again SportAccord was home to the signing of a new plan between governing body of the Games and one of its most powerful national Olympic committees.
The agreement has been signed half a year before it is due to begin and lays out a new plan as to how TOP and US television revenues are shared and also foresees that the USOC will make contributions to the IOC’s administrative costs associated with the Olympic Games. The Associated Press reports that these contributions could be $15 million through 2020 and $20 million after 2020, according to their anonymous sources.
IOC chief Dr. Jacques Rogge, noted, “This has been a long process and we started negotiations in 2009 at the Denver SportAccord convention.
"The USOC is an absolutely crucial pillar in the Olympic Movement.
“This agreement lays a cornerstone which will provide the foundations for the continued growth of the Movement and our shared values, not just in the United States but around the world.”
Christophe De Kepper, IOC director general, was pleased and relieved, “With this agreement, we can both look to the future and continue to support our common aims. It's a tribute to the leadership team of the USOC that we have reached this deal ahead of schedule with a deal that underpins a crucial partnership.”
The earlier agreement was inked back in 1996 and according to it the USOC received revenue proceeds of 12.75 percent of the American broadcast deals and 20 percent of the TOP sponsor revenues. Many of the international federations and the national Olympic committees have challenged the agreement as being the lion’s share of the Olympic proceeds taking much needed revenue away from the rest of the world’s sports movement.
It is widely viewed as being the obstacle for a successful American bid and the main deterrent of the Chicago 2016 campaign for the summer Games when they fell out of the bid race on the first round.
USOC President Larry Probst said, “I would like to thank President Rogge and his colleagues at the IOC who worked so diligently over the course of the last year and a half to find a solution that works for all parties. I can confidently say that we have accomplished that goal and have set the stage for a much more collaborative relationship going forward.”
USOC Secretary General, Scott Blackmun, added, “This agreement demonstrates the commitment of the United States and the USOC to the worldwide Olympic Movement.
“We look forward to working with the IOC, our fellow National Olympic Committees, the International Federations and our national federations to strengthen the Olympic Movement and enhance the resources available for athletes around the globe.”
This new plan will clear the way for an American bid for the USA and the USOC board will convene in June in the San Francisco Bay area to review a new game plan and strategize.
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