May 24 (Bloomberg) -- The U.S. Olympic Committee signed a new revenue-sharing agreement with the International Olympic Committee that will help the U.S. as it bids for future games.
“This agreement will definitely strengthen both sides,” Jacques Rogge, the IOC’s president, said at a news conference in Quebec City. “The IOC will be in position to better function and the USOC will enhance its possibility in having a leading role in sport in the world.”
The deal begins in 2020 and ends discord between the two bodies that hampered previous U.S. Olympic bids.
The USOC will contribute toward the cost of staging the games and take a reduction in future revenue from television and sponsorship rights, said Richard Carrion, president of the IOC’s finance commission. The two sides also settled on procedures for broadcast-rights negotiations and the use of historic television footage, Carrion said.
Financial terms weren’t disclosed.
The USOC receives 20 percent of global sponsorship revenue and 12.75 percent of U.S. broadcast rights revenue under the current deal, which dates back to 1996, the Associated Press said, citing an official with knowledge of the negotiations who requested anonymity. Under the new accord, the USOC will maintain its previous revenue, while its share of sponsorship revenue will drop to 10 percent of future increases and its TV rights share will fall to 7 percent of future boosts, AP said.
The USOC also will contribute $15 million toward staging the games through 2020 and $20 million after that, AP said.
The USOC bid to host the 2012 Olympics in New York lost to London. For 2016, a bid to bring the games to Chicago lost to Rio de Janeiro. The USOC had said that it wouldn’t submit another bid until the revenue-sharing dispute was resolved. With the new deal, the next Olympics it could bid on are the Winter Games in 2022 or the Summer Games in 2024.
“It’s premature to talk about our strategy,” said Larry Probst, chairman of the USOC. “We just signed this agreement literally 30 minutes ago, but we hope this has removed a roadblock from a successful bid from the United States.”
The USOC’s plans will be further discussed at board meetings in June, Probst said. The U.S. last hosted the Summer Olympics in 1996 in Atlanta and the Winter Olympics in 2002 in Salt Lake City.
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