The exchange rate of the Japanese yen and its effect on
the Nagano Winter Olympics are examined by USA TODAY's
Michael Hiestand. While the U.S. dollar now buys about 57%
more yen than it did "just 32 months ago," Hiestand writes,
"don't assume there's a big payoff for everybody from the
USA spending big bucks" at the Games. The $375M TV rights
fee CBS paid is in dollars and thus fixed, but the network
"will spend yen: Its production efforts, under way for
months, might cost about $100 million." CBS, "like others
with long-planned Olympic spending, gradually brought yen
through futures contracts that locked in favorable exchange
rates while passing off future risk to a third party, such
as a bank." Cartan Tours, the exclusive U.S. marketer of
events tickets, locked in an exchange rate of 120 yen last
year when the rate was 105 yen for $1. The exchange rate is
now 130, but Cartan said that its Nagano accommodations had
to be paid for early on. The USOC "also bet on the 120 yen-
to-dollar rate to finance its 457-member U.S. delegation to
the Games, including 207 athletes, and cost $4 million."
Nagano Games sponsor Coca-Coca said it's Olympic budgets
"are fixed far in advance," according to sports division
spokesperson Jennifer Scherer (USA TODAY, 12/10).
