The International Olympic Committee (IOC), which has said it will consider a collective bid for the 2014, 2016, 2018 and 2020 Olympics as well as the standard two-Games package, would expect to receive at least US$4 billion for a contract through to 2020 – the most lucrative TV rights agreement in the history of the IOC. Incumbent rights-holder NBC, which recently lost Olympic programming figurehead Dick Ebersol, and ESPN/ABC will pitch their bids to the IOC later today.
Fox Sports chairman David Hill led a six-man delegation that made a two-hour presentation on Monday to IOC officials. Sochi will hold the 2014 Winter Olympics and Rio de Janeiro will stage the 2016 Summer Games, but the host cities for the 2018 and 2020 Games have not been awarded yet.
“We're going to go for four,” Hill told The Associated Press. “If you look at amortisation, you have to make a major investment in technical hardware. Anyone will tell you if you advertise that over four years rather than two years, you're financially in a much better place.” The three companies will submit sealed bids on Tuesday afternoon at the IOC’s headquarters in Lausanne, Switzerland. The IOC could announce the winner by the end of the day or ask for a second round of bids.
Hill added that Fox would put in separate bids for two and four-Games packages, but admitted that the latter would be his preference. IOC chief broadcast rights negotiator Richard Carrion said the variations in the tender would make the decision “a little more complex”, but added: “We may have to make a judgement whether we want to go long term”.
NBC splashed out $2.2 billion to acquire the rights to the 2010 and 2012 Olympics nine years ago, and IOC marketing director Timo Lumme has said the governing body is “expecting an increase” in the fee covering the world’s most lucrative sports broadcast market. NBC's delegation in Lausanne includes CEO Steve Burke and Comcast chief executive Brian Roberts, while ESPN has sent chief executive George Bodenheimer and Disney CEO Robert Iger to Switzerland.
