IOC awards US TV rights for 2010 and 2012 Olympic Games to NBC
The International Olympic Committee (IOC) today announced that the US Olympic broadcast negotiations have concluded with the winning bid being awarded to General Electric and NBC for a total package of US$ 2,201 billion covering a range of areas including:
- US$ 2,001 billion TV rights spread as follows:
- US$ 820 million for the 2010 Olympic Winter Games (compare to US$ 614 million in Turin 2006)
- US$ 1,181 billion for the 2012 Summer Olympic Games (compare to US$ 894 million in Beijing 2008)
- sponsorship of the Games by NBC's parent company General Electric in the TOP 6 and TOP 7 IOC Marketing programmes amounting to a minimum of US$ 160 million up to maximum of US$ 200 million;
- right fees for the US Olympic trials to the sum of US$ 12 million;
- development of a digital TV library and archiving system for an estimated value of US$ 10 million;
- in addition, NBC has made a further multi-hundred million dollar commitment to promote the Olympic brand leading up to, and surrounding the Olympic Games.
This represents a global increase of 32.6% (34% for the Winter Games and 32 % for the Summer Games), and a compounded annual increase of 7.5% for the Winter Games and of 7.2% for the Summer Games.
The decision was made after two days of meetings held at the IOC Headquarters in Lausanne during which ABC, Fox and NBC each gave a presentation and submitted their proposals to the IOC. The negotiation process started last summer with preliminary discussions conducted with all US TV networks. Each proposal was discussed by an IOC delegation chaired by President Jacques Rogge, composed of IOC member Richard Carrion, Chairman of the Finance Commission and coordinator for the US market, various IOC directors, and of Neal Pilson, IOC advisor.
Commenting on the awarding of the US TV rights, IOC President Jacques Rogge said: " I would like to thank the three networks for their participation in this open and transparent negotiation process and for their impressive presentations. General Electric and NBC have put together a very comprehensive proposal that not only guaranties the widest coverage of the Olympic Games throughout the American territory but also ensures the promotion of Olympic sports on an on-going basis. In addition, it includes a very important contribution to our TOP marketing programme. This agreement will provide the IOC with the financial resources to continue its support for Organising Committees of the Olympic Games, National Olympic Committees and International Federations. In addition, I hope it is a sign of a return to a healthy market for Olympic sports broadcast rights. This deal will take NBC to total of thirteen editions of the Games, starting back in 1976, and we look forward to further strengthening our partnership in the future".
Jeff Immelt, Chairman and Chief Executive Officer, General Electric, said: "This is an important building block as GE becomes a more global company," said Jeff Immelt, Chairman and Chief Executive Officer, General Electric. "GE is the world's pre-eminent infrastructure company. What we do aligns with where the Olympic Movement goes and we will look forward to the opportunity to interface with host cities as we move forward in our partnership with the IOC."
Commenting on the announcement, Chairman of NBC Sports and Olympics division Dick Ebersol said: "Our most important partner, the IOC, spoke and we listened. Early in the process, they asked us to bring the full commitment of our parent company and GE stepped up in a commitment for unprecedented in the company's magnificent 125-year history. The IOC asked us to signal the value of the Olympic Movement in economic terms, and once again GE stepped forward and supported unparalleled , but fiscally responsible, rights fee bid."