International Olympic Committee Reports $588 Million in Financial Reserves
LONDON (AP) - The IOC's financial situation remains solid despite the global economic crisis, with reserves of $558 million and continuing increases in television and sponsorship revenues.
International Olympic Committee President Jacques Rogge presented details of the finances in his report Tuesday at the opening of the body's three-day general assembly ahead of the London Games.
"Our financial situation is strong and safe," Rogge said.
The financial reserves are actually down from the $592 million reported at the previous IOC session in Durban, South Africa, a year ago. The decline is likely due to fluctuations in currency exchange rates.
The reserve fund, which has grown from $105 million in 2001, is designed to allow the IOC to continue operating for four years in the event of an Olympics being canceled.
Television and sponsorship deals continue to bolster the IOC's coffers.
The committee has already secured $3.6 billion in TV rights fees for the 2014 Winter Games in Sochi and 2016 Summer Olympics in Rio de Janeiro. Rogge said the target is to surpass $4 billion - more than the $3.9 billion reached for the 2010 Winter Games in Vancouver and the London Olympics.
"We are not suffering from a drop in TV revenues predicted by many," Rogge said.
The IOC's biggest TV partner is NBC, which last year bought the U.S. rights to four Olympics through 2020 for a record $4.38 billion.
For the games of 2018 and 2020, the IOC has raised $2.6 billion so far from broadcasters. The 2018 Winter Games will be held in Pyeongchang, South Korea, while the host city for the 2020 Olympics will be selected next year.
The IOC's global sponsorship program, meanwhile, has raised $1 billion from 10 sponsors for Sochi and Rio. Rogge said the search for more sponsors is continuing.
For Vancouver and London, 11 sponsors paid a total of $957 million for the right to associate their brands with the games.
For 2018 and 2020, the IOC has so far signed seven sponsors for $722 million.