USOC To Trim Work Force By 10-15% To Protect Against Economy

NOT A SPONSORSHIP ISSUE: Scherr said that the decision was "more of a pre-emptive move than a reflection of the USOC's less-than-full slate of sponsors." But he conceded that the "bad economy was too big an issue to ignore." Scherr: "It's a factor of the economy. It's a factor of making sure we're in a position where we can react later [if the economy gets worse]." The AP's Eddie Pells reported the USOC BOD "decided to trim about 5[%] out of its $142[M] 2009 operating budget by making reductions in administrative expenses, nonessential programming and personnel." Sponsorship and "other commercial activity accounts for about 48[%] of the USOC budget." The sponsorship issue is "significant and more than six months after the end of the Beijing Olympics, five key slots -- worth around $15[M] each -- remain unfilled." And with the '10 Vancouver Games "only 11 months away, it figures those negotiations could be resolved soon," but Scherr said that it would be "foolish to plan for the future without looking at the way the economy is going" (AP, 3/3). USOC Chief Communications Officer Darryl Seibel noted that this marks the "third time in the last six years that the USOC has turned to layoffs to reduce costs" (USA TODAY, 3/4). In DC, Amy Shipley notes several "major Olympic sponsors have declined to renew, and negotiations for a U.S. television deal were pushed back to the fall because of the global economic crisis." Meanwhile, the IOC "wants a deal by next month in which the USOC gives up some of its share of U.S. broadcast and international sponsorship revenues" (WASHINGTON POST, 3/4).

Print This Article