Ebersol, IOC Agree That Rio Games Less Valuable To U.S. TV

Ebersol Claims Rio Means Less TV Revenue For IOC

NBC Sports & Olympics Chair Dick Ebersol Friday suggested that the '16 Rio Games are worth 10-15% less to U.S. TV networks, advertisers and sponsors than a Chicago Games would have been. Ebersol: "Particularly among advertisers and sponsors that's probably a 15% hit. Which would make it [$150-200M] there alone. Coupled with Rio, the IOC is looking at less television. But they've never voted their pocketbook. I don't think they're sitting there stunned there will probably be less money" ("Power Lunch," CNBC, 10/2). IOC Finance Commission Chair Richard Carrion also contends that the U.S. TV rights for the '14 and '16 Games are "worth less" in Rio than in Chicago. Carrion: "Obviously, the domestic games would be more valuable." He also indicated that the IOC may not award TV rights for the two Games "for another three years if the economy doesn't improve." Carrion: "We have plenty of time and it doesn't have to be in 2010. We could conceivably do a deal as late as 2012." Carrion added that he does "not expect the popularity of the Olympics to suffer a backlash from American viewers and advertisers." He said, "It's still a premium brand. I would not read much into that" (AP, 10/4).

IF IT WASN'T CHICAGO: The selection of Rio was the second-best option for the IOC on the TV front. The city is one hour ahead of the East Coast, which will allow U.S. broadcasters to air many of the marquee events, like swimming and track and field, in primetime. The IOC is expected to go to market with the U.S. television rights to the '14 and '16 Olympics within the next year. Rio offers the IOC a chance to increase those rights in the next quadrennium. 21 Marketing founder Rob Prazmark said, “Everyone is worried about the next negotiations, but for television Rio’s almost as good as Chicago. You’re selling for U.S. television a great time zone.” Neal Pilson, president of Pilson Communications, said, “Rio’s an attractive location. It probably will be a costly Olympics because you have to bring a lot of equipment with you, but the time difference is very attractive to U.S. television" (Tripp Mickle, SportsBusiness Journal). On Long Island, Neil Best wrote Rio's "prime-time friendly time zone and ... telegenic local population should have TV types, notably NBC and ESPN, set for a fierce bidding war" (NEWSDAY, 10/4). Tribune Co. reporters debated the question, "Should U.S. broadcasters pay less in the upcoming TV negotiations?" (LATIMES.com, 10/4). 

TWO IF BY SEE: In L.A., Joe Flint noted Comcast and NBC Universal earlier this summer were "at odds over an Olympic-themed cable network that Comcast wanted to launch." But now Comcast's talks to "take a controlling stake in NBC Universal and form a new content company could mean that the cable giant could end up with the Olympics after all." If Comcast "does end up controlling NBC Universal and starts to clean house, it will want to keep" Ebersol, who has "long ties to the IOC and, as he showed Comcast this past summer when he made their cable channel plans disappear, packs a lot of heat" (LATIMES.com, 10/1).