The International Olympic Committee and the US Olympic Committee agreed a revenue-sharing deal, bringing an end to a long-running dispute over the division of Olympic Games media rights and sponsorship revenue.
USOC has agreed to receive a smaller share of the media and sponsorship income in a 20-year deal beginning in 2020. The IOC had argued that the current deal, which began in 1996, was disproportionately weighted in favour of the USOC.
USOC is currently allocated 20 per cent of global sponsorship revenue and 12.75 per cent of US media rights revenue. The Associated Press reported that, in the new deal, USOC will retain its current income level, but will get only seven per cent of any increases in the US media rights revenue, and 10 per cent of any increases in global sponsorship revenue.
“This is a very happy moment for the International Olympic Committee but I believe also for the USOC as this agreement will definitely strengthen both sides,” IOC president Jacques Rogge said. “The IOC will be in a position to better function while the USOC would enhance its possibilities of having a leading role in sports in the world. This has been quite a long process, we started negotiating in May 2005, the beginning was a bit difficult and then it accelerated and we came to this very good conclusion.”
USOC chairman Larry Probst said: “From our standpoint we went into these negotiations with the objective of addressing key fundamental issues that were important to the IOC and at the same time insuring the financial well-being of the USOC on a long term basis. I think we were able to accomplish both sides of that equation.”
US broadcaster NBC Universal in June 2011 agreed a deal worth $4.38 billion (€3.42 billion) to acquire the US rights to the 2014, 2016, 2018 and 2020 Games. It edged out rival bids from Fox and ESPN. NBC, which has carried every summer Games since 1988 and every winter Games since 2002, paid around $2 billion for the rights to the 2010 and 2012 Olympics.