The SLOC is "close to getting a debt deferral" from the
USOC that will help secure a $130M line of credit "crucial
to staging the Games," according to Linda Fantin of the SALT
LAKE TRIBUNE, who wrote that the deal "might not come free"
to the SLOC. Seemingly "nervous about SLOC's ability to
repay the loan," Bank of America is "demanding organizers
defer millions in licensing and other royalty payments until
December 2002." The IOC has "agreed to wait for its share
of the money," but getting the USOC's "cooperation has been
more difficult." Bank of America has imposed an October 31
deadline. A memo "inadvertently distributed" to the media
on Friday during the USOC's annual meeting showed that the
USOC is asking the SLOC to provide "priority access" to
Games resources, such as tickets, accommodations,
transportation and parking; contribute $1M in donated
advertising for a new USOC campaign; "guarantee" a
percentage of the revenues from information technology deals
and other sponsorship categories that the IOC "may
relinquish;" and help pay commissions to IMG, "something
that was supposed to be the USOC's responsibility." SLOC
CEO Mitt Romney said that in all, the USOC deal would
involve about $15M in cash, goods and services. Fantin
reported that USOC officials "panicked when they learned of
the accidental leak, noting it may violate confidentiality
agreements between the two." But Romney said, "I don't feel
there will be great fallout." He said that the SLOC has
"rejected requests" that would see it lose money or control
over its budget, but it is considering "others," such as
giving the USOC some "preference on rooms," and paying IMG
commissions. Romney: "We're pleased with IMG's efforts and
the doors they have opened" (SALT LAKE TRIBUNE, 10/23).
