IOC won't be compensating NHL for using players, but...

[LadyStanley]

http://nhl.fanhouse.com/2011/01/05/...on/?utm_source=twitterfeed&utm_medium=twitter

IOC has no $$ to pay NHL for the use of players, but other concerns (highlights, access to players for NHL promo) should be able to be worked out.

The International Olympic Committee is willing to do more to ensure NHL participation in the 2014 Sochi Winter Olympic Games, but that doesn't include financial compensation to team owners, says IOC executive committee member Rene Fasel.
...
Among the other concerns the NHL has is lack of control over the event. The league has limited access to players during the Olympics for platforms such as NHL.com and the NHL Network, and the IOC's strict rules for rights-holders forbid TV highlights from the Games to be shown once the season resumes.
...
"We can solve some of the issues they had in Vancouver, media access, things like that," said Fasel. "These are very easy to organize

"The money should not be an issue because the issue is solved. We do not have any money and it is very easy."

Click to read more...

 

[Turboflex*]

Maybe they could give up some of their bribes?

 

[canuckster19]

Maybe they could give up some of their bribes?

I don't know, Fasel seems like a stand up guy to me, certainly a saint compared to his Fifa counterpart and fellow countryman Blatter.

 

[Fugu]

How much does the IOC get from NBC for the TV rights? I presume they sell rights worldwide as well.

Next question. Where does all the money go from there?

 

[Franck]

How much does the IOC get from NBC for the TV rights? I presume they sell rights worldwide as well.

Next question. Where does all the money go from there?

Organising the Olympics is not exactly cheap, I'd imagine a lot of money goes back to the host and most of the rest goes into covering the IOC's costs.

 

[kaiser matias]

I don't know, Fasel seems like a stand up guy to me, certainly a saint compared to his Fifa counterpart and fellow countryman Blatter.

And if it means anything there is talk that he is working on being the replacement for Jacques Rogge as IOC President. If anything it will mean hockey could get a bigger profile in the Olympics

 

[Killion]

.Next question. Where does all the money go from there?

Rolex
Cartier
Versace'
Manolo Blahnik
Pol Rogers'
Moet & Chandron
Berry Bros' & Rudd of Fleet Street (Wine Merchants)
The Bentley Motor Car Company
Ferrari SA
Lear Jet LLC
Bell Helicopter
Onasis Ship & Yacht Yards
Black Sea Caviar Producers
Alsatian Truffle Farmers Co-op
Christies Auction House's
Sothebys' Carriage Trade Properties
Trans-Siberian Mink Farmers Association
Casino de Monte' Carlo
etcetera
etc.......

 

[Fugu]

Organising the Olympics is not exactly cheap, I'd imagine a lot of money goes back to the host and most of the rest goes into covering the IOC's costs.

I don't think so since it's the IOC that hands out the awards to the cities to host the event (which they have to pay for on their own, iirc). I imagine there are significant costs, but I really would like to see the accounting of it, costs and how money is raised and disbursed.

Rolex
Cartier
Versace'
Manolo Blahnik
Pol Rogers'
Moet & Chandon
Berry Bros' & Rudd of Fleet Street (Wine Merchants)
The Bentley Motor Car Company
Ferrari SA
Lear Jet LLC
Bell Helicopter
Onasis Ship & Yacht Yards
Black Sea Caviar Producers
Alsatian Truffle Farmers Co-op
Christies Auction House's
Sothebys' Carriage Trade Properties
Trans-Siberian Mink Farmers Association
Casino de Monte' Carlo
etcetera
etc.......

 

[kdb209]

How much does the IOC get from NBC for the TV rights? I presume they sell rights worldwide as well.

NBC paid $2B for the US TV rights to 2010 (Vancouver) and 2012 (London) plus an additional $200M in sponsorships.

The IOC hasn't (AFAIK) awarded the rights for 2014 (Sochi) and 2016 (Rio). Rumor has it that both ABC/ESPN and Fox are planning to bid against NBC (soon to be Comcast/NBCU). It's possible that CBS will also bid in a partnership with Time Warner.

edit:

http://www.businessweek.com/news/20...mpics-rights-as-nbc-faces-vancouver-loss.html

Fox, ESPN to Bid on Olympics Rights as NBC Faces Loss (Update1)
February 02, 2010, 4:27 PM EST
By Brett Pulley

Feb. 2 (Bloomberg) -- News Corp.’s Fox and Walt Disney Co.’s ESPN plan to bid for U.S. rights to televise the 2014 and 2016 Olympics, challenging NBC, which said it would lose money on this month’s Winter Games.

Fox’s bid will reflect the costs of producing the Olympic Games, said David Hill, chairman of Fox Sports. CBS Corp. and Time Warner Inc. also are considering a joint bid for the 2014 Winter Games in Sochi, Russia, and the 2016 Olympics in Rio de Janeiro, two people with knowledge of the situation said.

Flat advertising and higher costs for rights led NBC to project its first loss in at least three decades on an Olympics for the games that start Feb. 12 in Vancouver. The International Olympic Committee has delayed bidding for the 2014 and 2016 events until the ad market improves, said executive board member Richard Carrion. Fox’s bid will ensure that the network doesn’t lose money if it gains the rights, Hill said.

 

[Fugu]

http://en.wikipedia.org/wiki/IOC#Revenue

Will add some details as I find them.


Revenue generated via five major programs:

The International Olympic Committee (IOC) manages broadcast partnerships and the TOP worldwide sponsorship program. The Organizing Committees for the Olympic Games (OCOGs) manage domestic sponsorship, ticketing and licensing programs within the host country under the direction of the IOC. The Olympic Movement generated a total of more than US$4 billion in revenue during the most recent Olympic quadrennium (2001–2004).

The IOC distributes some of Olympic marketing revenue to organizations throughout the Olympic Movement to support the staging of the Olympic Games and to promote the worldwide development of sport. The IOC retains approximately 8% of Olympic marketing revenue for the operational and administrative costs of governing the Olympic Movement.

So 8% of $4b for "administrative costs" is $320 million. (Realizing that's a 4 yr period.)


The Organizing Committees of the Olympic Games (OCOGs):

The IOC provides TOP program contributions and Olympic broadcast revenue to the OCOGs to support the staging of the Olympic Games and Olympic Winter Games:

TOP Program Revenue to OCOGs; the two OCOGs of each Olympic quadrennium generally share approximately 50% of TOP program revenue and value-in-kind contributions, with approximately 30% provided to the summer OCOG and 20% provided to the winter OCOG.
Broadcast Revenue to OCOGs; the IOC contributes 49% of the Olympic broadcast revenue for each Games to the OCOG. During the 2001 - 2004 Olympic quadrennium, the Salt Lake 2002 Organizing Committee received US$443 million in broadcast revenue from the IOC, and the Athens 2004 Organizing Committee received US$732 million.
Domestic Program Revenue to OCOGs; the OCOGs generate substantial revenue from the domestic marketing programs that they manage within the host country, including domestic sponsorship, ticketing and licensing.

National Olympic Committees (NOCs)

The NOCs receive financial support for the training and development of Olympic teams, Olympic athletes and Olympic hopefuls. The IOC distributes TOP program revenue to each of the NOCs throughout the world. The IOC also contributes Olympic broadcast revenue to Olympic Solidarity, an IOC organization that provides financial support to NOCs with the greatest need.

The continued success of the TOP program and Olympic broadcast agreements has enabled the IOC to provide increased support for the NOCs with each Olympic quadrennium. The IOC provided approximately US$318.5 million to NOCs for the 2001 - 2004 quadrennium.

International Olympic Sports Federations (IFs)

The IOC is now the largest single revenue source for the majority of IFs, with its contributions of Olympic broadcast revenue that assist the IFs in the development of their respective sports worldwide. The IOC provides financial support from Olympic broadcast revenue to the 28 IFs of Olympic summer sports and the seven IFs of Olympic winter sports after the completion of the Olympic Games and the Olympic Winter Games, respectively.

The continually increasing value of Olympic broadcast partnership has enabled the IOC to deliver substantially increased financial support to the IFs with each successive Games. The seven winter sports IFs shared US$85.8 million in Salt Lake 2002 broadcast revenue. The contribution to the 28 summer sports IFs from Athens 2004 broadcast revenue has not yet been determined, but the contribution is expected to mark a significant increase over the US$190 million that the IOC provided to the summer IFs following Sydney 2000.

Other organizations

The IOC contributes Olympic marketing revenue to the programs of various recognized international sports organizations, including the International Paralympic Committee, and the World Anti-Doping Agency (WADA).

Pffft. Just charge an extra $50m from NBC or ABC and give it to the NHL. Easy.

 

[Killion]

And Fortnum&Masons (their hampers are to die for)....

 

[seanlinden]

They're going to have a lot less money if the NHL doesn't go -- what will they do then?

 

[Fugu]

They're going to have a lot less money if the NHL doesn't go -- what will they do then?

Very true. I think the NHL has some leverage.

 

[LadyStanley]

As has been mentioned in NBC/Comcast purchase thread, TV contract negotiation thread....

The IOC has NOT even started the process of determining the next (US, Canadian, Mexican, Central America, South America, Australian/European/Asian/African) rights holders for the 2014 Winter (and 2016 Summer) Olympics.



And one other thing not mentioned in the article is that the NHL (and NHLPA) would like to have insurance covering the players during summer camps and the Olympics. (See Hasek, Dominik injury at Olympics and inability to play for the balance of the NHL season for rationale.)

 

[Hockey Team]

I think the NHL should demand at least the following:

- Unlimited usage of footage for things like highlights (obviously replays of the entire game would have to be limited to the networks)
- Access to the players/coaches for interviews and what not

I doubt they'll be getting money, and that's not what they should be going after. But it doesn't really help to promote the sport if the NHL can't use content from the events on their website.

And it is not an unreasonable request

 

[AllByDesign]

Rolex
Cartier
Versace'
Manolo Blahnik
Pol Rogers'
Moet & Chandron
Berry Bros' & Rudd of Fleet Street (Wine Merchants)
The Bentley Motor Car Company
Ferrari SA
Lear Jet LLC
Bell Helicopter
Onasis Ship & Yacht Yards
Black Sea Caviar Producers
Alsatian Truffle Farmers Co-op
Christies Auction House's
Sothebys' Carriage Trade Properties
Trans-Siberian Mink Farmers Association
Casino de Monte' Carlo
etcetera
etc.......

You are on your game today. Did you have Bran this morning?

I don't think so since it's the IOC that hands out the awards to the cities to host the event (which they have to pay for on their own, iirc). I imagine there are significant costs, but I really would like to see the accounting of it, costs and how money is raised and disbursed.

The Canadian taxpayers would love to see the accounting as well. Somebody made out like gangbusters. The oganizers claim that they broke even or had a very small loss. When asked if they would hand over the books there was a resounding 'no'.

They're going to have a lot less money if the NHL doesn't go -- what will they do then?

The NHL's participation is a feather in their hockey tournament's cap, but will not hamper their bottom line. The Russian players have made it very clear that they will attend in Sochi, regardless of the NHL's thoughts on the matter. The NHL is making a veiled threat, but I suspect the IOC has little concern.

I think the NHL should demand at least the following:

- Unlimited usage of footage for things like highlights (obviously replays of the entire game would have to be limited to the networks)
- Access to the players/coaches for interviews and what not

I doubt they'll be getting money, and that's not what they should be going after. But it doesn't really help to promote the sport if the NHL can't use content from the events on their website.

And it is not an unreasonable request

The NHL can demand... kick and scream... tell mommy as much as they like. The IOC plays the role of the poor pauper but they are an 800 lbs Gorilla. I am sure they want to have a cordial relationship with the NHL, but the NHL knows that if the Gorilla wants to start flinging dung, they can only leave the room.

 

[seanlinden]

The NHL's participation is a feather in their hockey tournament's cap, but will not hamper their bottom line. The Russian players have made it very clear that they will attend in Sochi, regardless of the NHL's thoughts on the matter. The NHL is making a veiled threat, but I suspect the IOC has little concern.

Very true. I think the NHL has some leverage.

Some? Try a ton of leverage.

In North America, there were rumours of networks submitting two bids for Olympic Coverage, one with NHL participation in the tournament, and one without NHL participation. Theoretically, the NHL is entitled to the entire difference between the two bids. If they don't have enough money to pay the NHL fair market value for getting their players mid-season, then they don't have enough money to host a best-on-best tournament.

Sure, Russians are going to go, but who's really going to watch the tournament if we're seeing the Russian stars take on the equivalent of Canada's Spengler Cup team? Meanwhile, all the NHL has to do is get the IIHF on board with replacing the Olympics best-on-best tourney with a World Cup of Hockey, and just cut the IOC out of the potential profits.

You also have to look past just 2014. Sure, the Russians care because they were embarassed in 2010. But, the 2018 Olympics are going to be in France, Germany or South Korea.... in that situation, the will of the players to fight the NHL on this issue may be much less.

 

[kdb209]

The NHL can demand... kick and scream... tell mommy as much as they like. The IOC plays the role of the poor pauper but they are an 800 lbs Gorilla. I am sure they want to have a cordial relationship with the NHL, but the NHL knows that if the Gorilla wants to start flinging dung, they can only leave the room.

Actually, the 800lb gorilla is NBC (or ABC or Fox or ...) and their $2B in revenue.

They have the pull to dictate event start times.

If the Olympics rights holders also hold the NHL rights they will have incentive and significant leverage to get access.

 

[dafoomie]

After Sochi, I'd like to see the major pro leagues pull out of the Olympics for good and make the World Cup their major international tournament. They can keep the money for themselves and not be dictated to by the IOC.

 

[Jeffrey93]

Why doesn't the IOC just hand over the TV rights to the Hockey events to the NHL for them to sell. NHL takes 80% and IOC takes 20%, or something like that.

Would that tarnish the whole TV package? If you have to flip to one channel for Olympic hockey and another channel for everything else. Would that cut too much into the 'everything else' TV rights value?

 

[Killion]

They have the pull to dictate event start times.

"Extortion is a messy business Gentlemen. Go away & think it over. Im busy right now"...
Ernst Stavro Blofeld

 

[seanlinden]

Why doesn't the IOC just hand over the TV rights to the Hockey events to the NHL for them to sell. NHL takes 80% and IOC takes 20%, or something like that.

Would that tarnish the whole TV package? If you have to flip to one channel for Olympic hockey and another channel for everything else. Would that cut too much into the 'everything else' TV rights value?

Why don't I hand out $1000 to my barber? Because I don't have to. I want to keep my money.

The thing with the IOC -- they are extremely greedy ********, who are out of touch with today's media market. In the words of Gordon Gekko, "greed is good". However, they fail to realize that the short term greed of wanting to benefit from NHL participation without paying for it, will only lead the NHL to pursue other avenues to making money off a best-on-best tournament. They need to realize that the NHL is just as greedy.

After Sochi, I'd like to see the major pro leagues pull out of the Olympics for good and make the World Cup their major international tournament. They can keep the money for themselves and not be dictated to by the IOC.

Exactly. Do it once every 4 years in September rather than starting the season in europe. It'll conflict with training camps / preseason games, but those aren't a money-maker anyways. Great way to start an NHL season.

 

[Jeffrey93]

Why don't I hand out $1000 to my barber? Because I don't have to. I want to keep my money.

The thing with the IOC -- they are extremely greedy ********, who are out of touch with today's media market. In the words of Gordon Gekko, "greed is good". However, they fail to realize that the short term greed of wanting to benefit from NHL participation without paying for it, will only lead the NHL to pursue other avenues to making money off a best-on-best tournament. They need to realize that the NHL is just as greedy.

I give both sides a tad more credit than that.

If the IOC wants to charge big bucks for a pile of hockey games and still get 20% of what would likely be a very big TV deal....as opposed to losing the NHL completely....this would be in their best interest and would also satisfy their greed. The NHL would also, I'd think, find it appealing.

I look at it this way. You can have product A for $10...or one person can buy product B for $8 and another can buy product C for $5. Product B + Product C = Product A.

The only issue I see is if this would start a domino effect that the IOC doesn't want to get involved in.

 

[seanlinden]

I give both sides a tad more credit than that.

If the IOC wants to charge big bucks for a pile of hockey games and still get 20% of what would likely be a very big TV deal....as opposed to losing the NHL completely....this would be in their best interest and would also satisfy their greed. The NHL would also, I'd think, find it appealing.

I look at it this way. You can have product A for $10...or one person can buy product B for $8 and another can buy product C for $5. Product B + Product C = Product A.

The only issue I see is if this would start a domino effect that the IOC doesn't want to get involved in.

You really shouldn't give the IOC more credit than that -- they don't deserve it. I see that you are Canadian, do you notice that whenever a network like TSN tries to show highlights from the Salt Lake City Olympics, all they can show is pictures? That's because of the IOC, rather than making their content available to everyone (and get people thinking olympics more than once every 2 years), they engage in highly restrictive broadcast deals to squeeze as much money as possible out of the networks. They are consistently operating on antiquated business models.

We also know, that they are unwilling to pay the NHL for using NHL players, so while the business case you have made is correct, the fact is, they're not prepared to do it.

 

[IU Hawks fan]

Just say screw them already and hold a World Cup every 4 years in the summer.