IOC finances get boost from larger TV and sponsorship deals: Rogge
By Karolos Grohmann,Reuters Wednesday, July 25, 2012, 12:13 am TWN
LONDON -- Revenue from selling broadcasting rights for the Olympic Games between 2014 and 2016 is expected to top US$4 billion, the International Olympic Committee said on Tuesday with sponsorship revenues also on the rise.
IOC President Jacques Rogge said the organization's finances were strong and safe with reserves more than trebling since 2001.
"For the period 2014-16 we already have US$3.6 billion and it should reach and exceed US$4 billion. TV rights totaled US$2.2 billion for the period 2002-04," Rogge told an IOC session days before the start of the London Olympics.
The amount for the 2010-2012 period was 3.9 billion.
Rogge said the organization had already generated US$2.6 billion in broadcast rights revenues for the 2018-2020 period with negotiations just starting.
The IOC signed their biggest single deal last year, agreeing to sell the U.S. broadcast rights up until 2020 to NBC for US$4.38 billion.
"The financial situation is strong and safe," said Rogge, who will step down next year after 12 years in charge.
"Since Dec 31, 2001 our reserves have grown from 105 million to 558 million, an increase of 453 million. This financial solidity is due to success of marketing and broadcast rights."
The IOC has also seen a growth in revenues from sponsors with its 2013-2016 top sponsors program expected to generate US$1 billion for the first time.
The 2017-2020 program has already brought in US$722 million with seven sponsors, Rogge said.
The same program had been worth US$663 million for the period 2001-04.
"Even if our financial situation is solid ... we must still remain realistic. The IOC must ensure that it continues and intensifies the policy of controlling cost and complexity of the games."
The IOC has been trying to reduce the size of the games and has capped athletes at just over 10,000 and the number of sports at 28 to keep their product attractive to potential bid cities.
Russia's Sochi will play host to the 2014 Winter Olympics while Rio de Janeiro will become the first South American city to stage the Summer Games in 2016. The 2020 host city will be decided next year.
MOST POPULAR OF THIS SECTION