USOC decides to pull the plug on 2020 Summer Olympic bid
The US Olympic Committee (USOC) has decided not to bid for the 2020 Summer Olympics. While there has been no formal announcement regarding this decision, the spokesman for USOC, Patrick Sandusky confirmed this news via his Twitter update on Monday.
The decision taken by USOC is based partially on its ongoing revenue-sharing dispute with the International Olympic Committee (IOC) and partially on the current economic conditions of the country.
The revenue-sharing dispute between the two bodies involve the revenue share of Olympic income that is taken by the USOC, which includes 12.75 percent of US broadcast right deals and 20 percent of global sponsorship revenue.
While the USOC finds its share justified, IOC and various national Olympic committees are not happy with the arrangement and are demanding from the USOC to reduce its share. However, United States have shown no intention to loosen its stance so far. IOC
has been unable to put too much pressure on USOC as it needs the American body more than other national bodies due to the success of the American teams in Olympics and the revenue generated in the country.
The other reason for USOC to pull the plug on 2020 Summer Olympics is due to the current economic condition of the country. With so less time left, the Committee felt that they would not be able to put together a good enough deal without taking debts, a
least favourable option for the country under the current circumstances.
USOC has already informed the cities interested in bidding for Olympics about its decision. These cities include Chicago, New York, Los Angeles, Tulsa, Minneapolis, Dallas and Las Vegas.
Talking to a leading sports network, Sandusky said, “We haven't had any discussions with any particular (prospective) bid cities, so I don't know how they feel, but it just hasn't been on our radar screen. We've been focused on the revenue [sharing] discussions
and putting together the best team possible for 2012.”
The IOC does not seem to disappointed with the decision taken by the USOC. According to the IOC spokesperson Emmanuelle Moreau, “The United States and its athletes have made, and continue to make, a huge contribution to the Olympic Movement. We always welcome
a bid from such a key partner and look forward to a bid in the near future.”
United States last hosted Olympics in 1996. New York and Chicago bided for the 2012 and 2016 Olympics respectively, but both the cities lost miserably.
The deadline for placing a bid for 2020 Summer Olympics is September 1. The cities which have announced their intention to place a bid include Tokyo, Istanbul, Rome and Madrid. The decision regarding the new host city will be taken by the IOC in September,
2013.
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