Despite magic contract: No increase for IOC

By Guenter Deister Jun 8, 2011, 15:09 GMT

Berlin - After three decades of rapid increases the business of the Olympics seems to have levelled out.

The International Olympic Committee (IOC) has sold the US TV rights for the 2014, 2016, 2018 and 2020 Games for 4,382 billion dollars to NBC.

And even though this amount does not represent an increase, IOC President Jacques Rogge is satisfied. 'We have managed to secure the IOC's financial stability for the next decade,' he said.

Vice-president Thomas Bach said that under the present economic climate the contract was a good one for the IOC. 'It sets an important signal for the long-term belief in the IOC,' the German said.

To protect its interests the IOC had to sell the rights for two 'sets' of Olympic Games, with the Winter edition in Sochi and the Summer Games in Rio de Janeiro (together 2.01 billion dollars), failing to reach the amount paid for the two previous Games.

Only the amount paid for the 2018 (to be decided between Munich, PyeongChang and Annecy) and 2020 (only Rome is a candidate so far) Games (2.38 billion dollars) brought an increase for the Olympic movement.

The US TV rights are the most important revenue for the IOC, with another important source of revenue being sponsorships, which amount to one billion dollars in the four years ending 2012.

NBC made a loss of 223 million dollars with their transmission of the 2010 Winter Games in Vancouver and fear another loss in London next year.

The IOC is also struggling to increase their revenue with their European TV rights, after selling the rights for 986 million dollars for 2010 and 2012.

As the IOC turned down an offer from the European Broadcast Union, they are now attempting to sell the rights individually, but have secured no more than 497 million Euros, however, with the huge markets of Germany, Britain and France still outstanding, that amount will rise considerably.

It remains to be seen whether the deal with NBC brings some movement into the market for the European TV rights, but the IOC has already said that EU legislation does not allow a selling of four Olympic Games at the same time.

There is, however, the possibility that TV rights are adjusted for different hosts. NBC paid 820 million dollars for Vancouver, but only 775 million dollars for Sochi.

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