IOC awards Brazilian broadcast rights for US$210m
Published: Friday | August 28, 2009
The IOC awarded the broadcast rights in Brazil for the 2014 and 2016 Olympics to three media companies in a deal worth US$210 million, a major increase over previous contracts and a boost for Rio de Janeiro's bid for the 2016 Games.
TV Globo acquired the main rights across all platforms in partnership with Bandeirantes and Rede Record in what was described as a historic deal for Brazil, South America and the International Olympic Committee.
"This is an important announcement, not only for the IOC, but for the Olympic movement as a whole," IOC president Jacques Rogge said in a statement. "Brazilians will be able to enjoy unparalleled coverage of the Olympic Games in 2014 and 2016. The agreement also represents an important increase in revenue for the Olympic movement."
Big increase in fees
The 2014 Winter Olympics will be held in Sochi, Russia. The host city of the 2016 Summer Games will be chosen by the IOC on October 2, with Rio de Janeiro competing against Chicago, Madrid and Tokyo.
The Rio bid committee said the agreement covers $170 million in rights fees and at least US$40 million in media promotional packages.
The total fee marks a big increase over the US$60 million deal with Rede Record for the 2010 Winter Games in Vancouver and 2012 Summer Olympics in London. The South American rights, including for Brazil for the 2006 and 2008 Olympics went for US$29.75 million.
The Rio bid committee hailed yesterday's announcement as evidence of the strength of the Brazilian economy and advertising market.
"This was a very positive day for Rio indeed," bid chief executive Carlos Roberto Osorio told The Associated Press in a telephone interview. "During the economic downturn, Brazil was the only country that could put together a proposal this strong. It shows the economy is very stable."
The announcement came just over a month before the IOC vote in Copenhagen. Rio is considered a strong contender with its pitch to take the Olympics to South America for the first time.
The most lucrative broadcast rights are those awarded in the United States. The IOC has postponed those negotiations until sometime after the 2016 vote due to the economic crisis.