The resignation of NBC Sports Group chairman Dick Ebersol last week instantly led to speculation that this was the beginning of the end for NBC and the Olympics.
On June 6, the International Olympic Committee will welcome representatives from NBC, ESPN/ABC and Fox to Lausanne, Switzerland, to auction off the U.S. broadcast rights to the 2014 Winter Games at Sochi, Russia, and the 2016 Summer Games in Rio de Janeiro, Brazil.
The IOC has a great deal of respect for what Ebersol has done for the games, but Ebersol’s absence in Lausanne won’t mean a thing.
The IOC expects the 2014 and 2016 Games to bring them in excess of $2 billion from a U.S. network. But will someone bid more than $2 billion after NBC lost $200 million at the 2010 Games in Vancouver?
Brian Roberts — chairman and CEO of Comcast, the parent company of NBC Universal — is a huge fan of the Olympics and has said NBC Universal will make a strong bid. There have been rumblings that it does not want to lose money, so it is not likely to overbid to keep the games.
Enter ESPN/ABC and Fox, two active groups that have been buying college football and basketball rights like kids buy baseball cards. ESPN/ABC has made it clear it intends to be aggressive in Lausanne. It also has stated it plans to run all events live no matter what time they air in the United States and likely would package a prime-time block on ABC.
Fox is happy to be quiet for the moment. Never underestimate it, however. It is always a player and has recently shelled out money to put college sports on FX.
Here is where the bid may be won or lost. Besides spending $2 billion for the broadcast rights, the parent company of the winner also must pay $200 million to the IOC to become an international corporate sponsor. A rumor is that Disney, the parent company of ESPN/ABC, is willing to work out a marketing deal with the IOC that could put Olympic products in its theme parks and would allow the use of Disney characters for Olympic-related events. That, along with a strong bid, might be the game changer for ESPN.
Examiner columnist Jim Williams is a seven-time Emmy Award-winning TV producer, director and writer. Check out his blog, Watch this!
