Tuesday, April 21, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Marketing agreement an obstacle in US bid for 2024

By
July 30, 2014 |

COLORADO SPRINGS, Colo. — If Boston, Los Angeles, San Francisco or Washington is picked to host the 2024 Olympics, the U.S. Olympic Committee will pay the price for winning. One of its first tasks will be to hand over millions in sponsorships to the victorious city’s newly formed organizing committee.

It’s one of those costly facts of life in the Olympics thanks to the Joint Marketing Program Agreement that a country’s Olympic federation must sign when it puts a city up as a candidate to host the Games. It also played into the failures of New York and Chicago in the last two U.S. attempts to land the Olympics.

The last two American bids have included agreements that didn’t conform with the International Olympic Committee’s guidelines, which call for around 90 percent of the host federation’s domestic sponsorship to be channeled to the new organizing committee. The USOC, not backed by any government funding, has balked at the terms because it would have trouble making up for the millions it gives away.

It would likely seek a different arrangement for a 2024 bid, as well.

“A lot of countries might say it’s not an issue,” said Jim Scherr, the CEO of the USOC when New York finished fourth in the 2012 bidding. “They know if the Olympic committee loses money, the government will step in and make up the difference. You put it on the government’s tab and call it a day.”

Not so in the United States. In meetings last week with leaders of the four potential bid cities, USOC leaders spent a good amount of time explaining the JMPA. The USOC will decide early next year whether to bid for 2024.

“I acknowledge it’s been a contentious issue in the past, both with New York and Chicago,” CEO Scott Blackmun said. “I can tell you we’re working hard to change our relationship with each bid city. We want to work with them to develop a structure that makes sense for us and them.”

Some form of the agreement has been in play since after the 1984 Olympics in Los Angeles, which were the first to truly cash in on the marketing power of the worldwide games. With fewer marketing rules in place, sponsors and the hosts ran into some awkward situations — for instance, film companies Kodak and Fuji wound up paying big bucks to different entities and ended up battling over the same Olympic ad space.

To avoid that, the IOC made the host country’s Olympic committee sign over the vast majority of its sponsorships to the organizing committee that forms when a city is awarded the Olympics. London’s domestic sponsorship program for the 2012 Games produced $1.15 billion.

IOC marketing director Timo Lumme says there’s some flexibility built into the program, so the USOC might not have to give away as much as some other countries, but the principle of the concept stays true.

“If you’re Company X, you don’t want, in the morning, a person from the organizing committee coming to you selling their wares, then in the afternoon someone from the U.S. team coming and doing the same thing,” Lumme said.

Most Olympic committees have been quick to sign the JMPA, knowing the surge in interest sparked by a home Olympics will lure new sponsors and, more importantly, that their national governments will step in to make up the difference.

But in the United States, the sponsorship market is considered close to tapped out and the federal government has a long history of not providing funding to the USOC.

That puts the USOC is a spot of not having any clear path to make up the sponsorship shortfall, which accounts for between 20 and 30 percent of its revenues ($168 million last year) — a good portion of which is used to fund Olympic athletes.

In the bid for 2012, the USOC didn’t put a signature on the JMPA with New York until the night before the voting. Chicago’s JMPA was signed about a month before the Games were awarded. Both cities finished fourth in the voting.

The USOC is optimistic its improving relationship with the IOC will provide some leeway if it bids for 2024. In 2012, the USOC and IOC came to terms over a long-simmering feud about revenue sharing, with the USOC agreeing not to take as big a portion of the money the IOC receives from sponsors and TV.

When that deal was resolved, the USOC said it would start looking into bidding for the Olympics again.

“With both the IOC and our potential bid cities, we have an opportunity to do things differently,” Blackmun said. “The fact that we’re coming to the table trying to honor their principles and their needs is just going to make this process different than in the past.”

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

 
Kids Day of Fishing began with $20 donation

By Amy Maginnis-Honey | From Page: A2 | Gallery

 
Chabad will begin Torah for Solano Jewish community

By Amy Maginnis-Honey | From Page: A6 | Gallery

Library foundation executive moves to Child Haven

By Susan Winlow | From Page: A5

 
Theater schedules free screening of Sundance film

By Amy Maginnis-Honey | From Page: A8

Vacaville plans recreation expo

By Amy Maginnis-Honey | From Page: A5

 
Frazier to discuss transportation at EDC breakfast

By Kevin W. Green | From Page: A5

 
Fairgrounds site of horse-betting seminar, brunch

By Susan Hiland | From Page: A5

Il Fiorello schedules vegetarian cuisine class

By Susan Hiland | From Page: A6

 
Fairfield police log: April 19, 2015

By Glen Faison | From Page: A12

Suisun City police log: April 19, 2015

By Glen Faison | From Page: A12

 
.

US / World

Lawmakers seek FDA review of ingredients used in cosmetics

By The Associated Press | From Page: B2

 
 
 
Sheriff’s domestic violence-related conviction erased

By The Associated Press | From Page: B2

Utah woman gets up to life in prison in deaths of 6 newborns

By The Associated Press | From Page: B2

 
 
Lawyer: Washington Post reporter in Iran faces 4 charges

By The Associated Press | From Page: B2, 2 Comments | Gallery

 
Bombs shatter houses in Yemen capital, hit near Iran Embassy

By The Associated Press | From Page: B2

 
Questions, answers about federal anti-radicalization effort

By The Associated Press | From Page: B2

 
Where US sees terror prevention, some Muslims see profiling

By The Associated Press | From Page: B2, 4 Comments | Gallery

 
Chemistry Ph.D. student illustrates her thesis in comic book

By The Associated Press | From Page: B3 | Gallery

Public memorial held for the Rev. Robert Schuller

By The Associated Press | From Page: B2

 
SC paper wins Pulitzer for reporting on domestic abuse

By The Associated Press | From Page: B2

 
.

Opinion

 
Why does Fed insist on targeting inflation?

By Ramesh Ponnuru | From Page: A11, 2 Comments

Income disparity study results ironic

By Dan Walters | From Page: A11, 33 Comments

 
.

Living

Community Calendar: April 21, 2015

By Susan Hiland | From Page: A2

 
.

Entertainment

 
Bobby Brown’s lawyer: Bobbi Kristina Brown has opened eyes

By The Associated Press | From Page: B3

US writer who fled Austria to escape Holocaust dead at 90

By The Associated Press | From Page: B3

 
Vice News, NPR, CNN, WNYC win double Peabody Awards

By The Associated Press | From Page: B3

HBO planning to deal Web pot sitcom ‘High Maintenance’

By The Associated Press | From Page: B3

 
Kolbert’s ‘Sixth Extinction’ wins Pulitzer for nonfiction

By The Associated Press | From Page: B3

Wolfe’s ‘Anthracite Fields’ wins Pulitzer for music

By The Associated Press | From Page: B3

 
Anthony Doerr wins Pulitzer Prize for fiction

By The Associated Press | From Page: B3

Elizabeth A. Fenn wins Pulitzer Prize for history

By The Associated Press | From Page: B3

 
Gregory Pardlo’s ‘Digest’ wins Pulitzer Prize for poetry

By The Associated Press | From Page: B3

David I. Kertzer wins Pulitzer for biography-autobiography

By The Associated Press | From Page: B3

 
Stephen Adly Guirgis wins Pulitzer for drama

By The Associated Press | From Page: B3

.

Sports

Mustangs rally in seventh inning to top Falcons

By Daily Republic staff | From Page:

 
AP source: Peterson stays home from Vikings workouts

By The Associated Press | From Page: B1

Report: 2 teams needed to make California stadium profitable

By The Associated Press | From Page: B1

 
Data deluge: MLB rolls out Statcast analytics on Tuesday

By The Associated Press | From Page: B1

Former Chicago Bears linebacker Doug Buffone dead at 70

By The Associated Press | From Page: B1

 
New format means injured drivers no longer must race

By The Associated Press | From Page: B1

Saunders: ‘I’m the coach until I say I’m not’

By The Associated Press | From Page: B1

 
Faldo to make final appearance at British Open this year

By The Associated Press | From Page: B1

Braves’ McKirahan suspended 80 games for positive drug test

By The Associated Press | From Page: B1

 
Raptors Lou Williams wins NBA Sixth Man Award

By The Associated Press | From Page: B1

Ugly Olympic conflict breaks into open at Sochi conference

By The Associated Press | From Page: B1

 
Pacquiao gets in 2 words before conference call cancelled

By The Associated Press | From Page: B1

Eagles sign quarterback Tim Tebow to 1-year contract

By The Associated Press | From Page: B1

 
McLellan out after 7 years as coach of San Jose Sharks

By The Associated Press | From Page: B1

Pelicans coach says Warriors arena noise might be too loud

By The Associated Press | From Page: B1

 
Police: LA Kings’ Jarret Stoll had cocaine, Ecstasy in Vegas

By The Associated Press | From Page: B1

Desisa wins 119th Boston Marathon; Rotich takes women’s race

By The Associated Press | From Page: B1

 
Jockey Chris Antley leads Racing Hall of Fame class

By The Associated Press | From Page: B1 | Gallery

.

Business

Judge returns ultra-rich club founder Tim Blixseth to jail

By The Associated Press | From Page: B4

 
Running out of time: Limited-time deals can be limiting

By The Associated Press | From Page: B4

$134M proposed for 10 BP-funded oil spill recovery projects

By The Associated Press | From Page: B4

 
Hormel says bird flu outbreak will hurt turkey sales

By The Associated Press | From Page: B4

Bird flu confirmed at Iowa farm with 5.3 million chickens

By The Associated Press | From Page: B4

 
US stocks gain, rebounding from Friday’s slump; Hasbro jumps

By The Associated Press | From Page: B4

 
Survey: US businesses expect sales rebound, more hiring

By The Associated Press | From Page: B4

Bristol-Myers: 2 cancer drugs beat 1 against melanoma

By The Associated Press | From Page: B4

 
Halliburton says has cut 9,000 jobs in wake of oil’s drop

By T. Burt McNaughton | From Page: B4

Labor group seeks rehiring of workers at 5 Wal-Mart sites

By The Associated Press | From Page: B4

 
Frederick’s of Hollywood files for Chapter 11 bankruptcy

By The Associated Press | From Page: B4

Willie Nelson becomes latest celebrity in marijuana business

By The Associated Press | From Page: B4 | Gallery

 
Kraft Mac & Cheese shedding the dyes

By The Associated Press | From Page: B4

ESPN says Verizon’s new FiOS TV packages violate agreements

By The Associated Press | From Page: B4

 
Lawsuit: Southwest failed to respond to medical emergency

By The Associated Press | From Page: B4

.

Obituaries

.

Comics

Bridge April 21

By Daily Republic Syndicated Content | From Page: B8

 
Get Fuzzy April 21

By Daily Republic Syndicated Content | From Page: B7

Peanuts April 21

By Daily Republic Syndicated Content | From Page: B7

 
Rose is Rose April 21

By Daily Republic Syndicated Content | From Page: B7

Frank and Ernest April 21

By Daily Republic Syndicated Content | From Page: B7

 
Baby Blues April 21

By Daily Republic Syndicated Content | From Page: B7

For Better or Worse April 21

By Daily Republic Syndicated Content | From Page: B7

 
Word Sleuth April 21

By Daily Republic Syndicated Content | From Page: B8

Dilbert April 21

By Daily Republic Syndicated Content | From Page: B7, 1 Comment

 
Cryptoquote April 21

By Daily Republic Syndicated Content | From Page: B8

Sally Forth April 21

By Daily Republic Syndicated Content | From Page: B7

 
Garfield April 21

By Daily Republic Syndicated Content | From Page: B7

Crossword April 21

By Daily Republic Syndicated Content | From Page: B8

 
B.C. April 21

By Daily Republic Syndicated Content | From Page: B7

Wizard of Id April 21

By Daily Republic Syndicated Content | From Page: B7

 
Blondie April 21

By Daily Republic Syndicated Content | From Page: B7

Beetle Bailey April 21

By Daily Republic Syndicated Content | From Page: B7

 
Baldo April 21

By Daily Republic Syndicated Content | From Page: B7

Zits April 21

By Daily Republic Syndicated Content | From Page: B7

 
Pickles April 21

By Daily Republic Syndicated Content | From Page: B7

Sudoku April 21

By Daily Republic Syndicated Content | From Page: B8