Bidding for the 2014 and 2016 Olympics may have to wait.
The International Olympic Committee is considering delaying U.S. TV rights negotiations for the 2014 and 2016 Olympic Games until after the site of the 2016 Olympics has been chosen.
Previous television deals have been agreed upon without knowing where the Olympics would be held. With the uncertainty in the economy, and with the 2016 Games potentially occurring in Chicago — thereby making Olympic rights far more valuable — the networks stand to benefit considerably from the postponed bidding. The IOC also figures to benefit, as “in [the current] weakened marketplace, the IOC won’t get its $4 billion-plus rights fee for its two Olympic events package deal.”
The networks may be willing to pay far more for the rights if they know for sure that the 2016 Games will take place in Chicago than if they believe there’s only a 1 in 4 chance of that happening. The 2014 Winter Games will take place in Sochi, Russia, whose eight-hour time difference from the East Coast “makes the event less attractive for U.S. broadcasters.” A Sochi/Chicago package figures to be much more attractive than Sochi/Madrid or Sochi/Tokyo.
The potential for increased TV revenue may tilt the scales towards Chicago being selected as the site of the 2016 Olympics. Former USOC chairman Peter Ueberroth says an Olympics in Chicago would be a “a gift to the entire Olympic movement, not just the United States. … Revenues are (flat-lining). If Chicago is selected, revenues are going to go up.”
