IOC generates a record $5 billion during last quadrennium
July 24, 2012 02:51 PM
Revenues from TV rights worldwide formed the bulk of the approximately $5 billion that the IOC generated during the last four years. The other $1 billion came from its worldwide sponsorship program known as TOP (The Olympic Partner program).“The TOP program remains strong in spite of the difficult global environment,” said Richard Carrion, IOC executive committee member and chairman of the finance commission, during a presentation Tuesday at the 124th session of the IOC in London.
Carrion also informed his colleagues that the organization already had secured $3.7 billion in TV rights for the 2013-16 quadrennium. The IOC most recently secured a reported $100 million from the BBC for rights to the 2014 and 2016 Olympics. There are still several key markets to sell.
“While I can assure you we are not going to get a 50 percent increase [in 2013-16 from 2009-12], we will get some increase,” Carrion said.
Carrion offered an update on the 2011 revenues and expenses. The organization pulled in $136 million and spent $376 million. Its revenues slump in non-Olympic years because most of its money comes from TV rights holders who pay the year that a Games is held.
“Once the London Games conclude successfully, we’ll be able to accrue a substantial amount of … income,” Carrion said.
The IOC voted in favor of keeping accounting firm PricewaterhouseCoopers as its auditor. The organization opted in 2009 to not sell that category when Deloitte expressed interest in becoming a TOP partner.
After the vote, Carrion addressed a recent embezzlement scandal at the Olympic Museum. Three members of the IOC’s finance department were fired after being arrested and charged with embezzling more than $1.6 million over a 10-year period.
“This matter was investigated,” Carrion said. “It was dealt with. New controls were put in place. The primary culprit is awaiting sentencing.”
The IOC has sharpened the regulations of its audit commission and changed its executive board structure so that the chair of finance is not also the chair of the audit commission. Carrion has held both positions since 2006.
The IOC executive board now will appoint the chair of the audit commission. The position formerly was filled by an appointment from the IOC president.