TV can help Chicago tie up '16 Olympics? Do surmise ...
By Eddie Pells
Associated Press
Chicago appears to have the most to gain if the International Olympic Committee delays the bidding on American television rights for the 2016 Games until after the host city is chosen.
The IOC's top negotiator said Wednesday that delaying the TV rights bidding process for the 2016 Olympics until after the location is known makes the most sense in the current financial climate. Normally, the bidding takes place before the site is selected.
Chicago, Madrid, Rio de Janeiro and Tokyo are the contenders. The host will be chosen on Oct. 2.
"In that sense, it removes some of the uncertainty, which may work to our advantage or not," IOC finance commission chairman Richard Carrion said of the possible delay.
TV rights made up 53 percent of the IOC's revenues from 2001-2004, and the percentage is expected to be similar in the four-year period ending in 2008. U.S. network NBC paid $894 million to televise this year's Beijing Games, more than double what the European Broadcasting Union paid to televise the games to the entire continent. Chinese television paid just $7 million.
The Chicago 2016 was keen to play down the possible benefit.
"Our official public stance would be that that decision is separate from the bid race, and we don't believe it has any impact on us trying to win the bid," said Chicago 2016 spokesman Patrick Sandusky.
Earlier this year, McDonald's, one of the Olympics' biggest sponsors, renounced a statement by an executive, John Lewicki, who said: "The international market is very important to us, but some of the cities they are picking are not. I'm not going to sit here and tell you that if it's not Chicago, we won't renew, but if it is Chicago, we probably will."
Given its financial stake in the games, NBC negotiated with Olympic organizers to move some high-profile swimming and gymnastics events to the morning in China so they could be televised in prime time in America.
Although such an arrangement might be possible if the Olympics go overseas again, most signs point toward American bidders paying more to televise an Olympics in the U.S., because there would be more hype about the event.
Peter Ueberroth spoke on that subject a month ago when he gave his final big speech as the U.S. Olympic Committee chairman. He's staying on with the USOC in a nonvoting position in part to help shepherd the Chicago bid.
"It's a gift to the entire Olympic movement, not just the United States," Ueberroth said of Chicago hosting the games. "Revenues are (flat-lining). If Chicago is selected, revenues are going to go up."
Ueberroth led the effort to bring the 1984 Games to Los Angeles and helped turn the Olympic brand into a money maker.
"Every time in history, when the games come to this country, it's a big boost," Ueberroth said in an October speech before the USOC Assembly. "Chicago would give a major boost to the Olympic movement if we can win. It's important. Not the end of the world, but important."
That was part of a speech in which Ueberroth said the IOC must accept that the United States provides the lion's share of the Olympic movement's money through TV and advertising revenue. IOC members have complained about a USOC deal with the IOC that called for it to receive about $300 million in the four-year period ending this year. That $300 million equals about 13 percent of U.S. TV rights fees and 20 percent of global marketing revenues.
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