● From our sister site, TheSportsExaminer.com ●
The annual “Impact Report” of the United States Olympic and Paralympic Committee explained the wide range of activities it is engaged in, but most of all revealed a heavy emphasis on athlete services, with generally good results.
But the USOPC also lost $30.46 million in 2022.
Spending, in an Olympic Winter Games year, was down from 2021: $327.22 million vs. $346.30 million, so the problem was in revenue.
True, monies from the International Olympic Committee for the USOPC’s share of U.S. television rights and TOP sponsorships was down from 2021 since payments for the Olympic Winter Games are less than those for the Olympic Games. In 2021, those payments, and USOPC domestic sponsorship sales totaled $396.48 million, vs. the 2022 total of $299.44 million. This was expected.
Contributions, a recent emphasis for the USOPC, were up. The 2021 total of $24.85 million was surpassed by 16% to $28.91 million in cash, plus another $3.79 million in value-in-kind (not called out in 2021) for a total of $32.70 million. Fundraising expenses were down slightly, from $10.45 million in 2021 to $10.35 million in 2022.
So what happened?
Investments. Where the 2021 statements showed a glossy $44.75 million in investment income, from the affiliated U.S. Olympic & Paralympic Endowment and U.S. Olympic & Paralympic Foundation, that turned into a loss of $41.62 million in 2022, a flip of $86.37 million. And there’s the difference.
Removing the investment loss showed operating income of $11.16 million, instead of the posted loss of $30.46 million, on net revenues of $296.76 million. So now you know.
During the year, the USOPC made payments to athletes and to National Governing Bodies, which also paid athletes from various programs:
● $40.00 million in direct athlete payments
● $20.45 million in direct-to-athlete services
● $67.15 million in National Governing Body grants
● $20.71 million in National Governing Body services
The total was $148.31 million. The biggest winners among the NGBs included several of the winter-sport federations in an Olympic Winter Games year:
● $16.58 million to the U.S. Ski & Snowboard Association
● $9.88 million to USA Track & Field
● $7.86 million to USA (Ice) Hockey
● $7.17 million to USA Swimming
● $5.89 million to USA Bobsled & Skeleton
● $5.71 million to USA Wrestling
● $4.76 million to USA Volleyball
● $4.51 million to USA Speedskating
● $4.42 million to USA Gymnastics
● $4.17 to U.S. Paralympic Track & Field
There were additional expenditures by the USOPC itself related to its “Athlete Excellence” programs which brought the total in this sector to $183.18 million or 61.85% of the total expenses for the year.
The USOPC also paid $20.00 million to the U.S. Center for SafeSport as mandated by the U.S. Congress, and $5.16 million to support the U.S. Anti-Doping Agency.
Even with the investment losses, the USOPC is hardly a hand-to-mouth organization. It ended 2022 with assets of $864.66 million, including $321.84 million in reserves, including those with donor restrictions.
There is also a fascinating disclosure in the notes to the statements, which explained that the U.S. Olympic & Paralympic Foundation entered into an agreement in 2022 with the Los Angeles 2028 organizing committee for “fundraising rights for the LA28 Games” for $40.00 million, discounted for early payment to $35.967 million through 2027. LA28 was apparently paid $6.90 million in 2022 as the first installment, with subsequent payments due of $4.0 million in 2023 and 2024 and $7.0 million in 2025-26-27. Taken as described, this means that you will not see a donations-request program from LA28 for the organization of the 2028 Games, and the U.S. Olympic & Paralympic Foundation will be the one asking for donations to support the American team in 2028. Logical, and a nice bonus for the LA28 budget.
The USOPC’s Form 990 tax return showed 561 people employed during 2022, along with 573 volunteers. The financial statements list the top 20 earners at the USOPC, who were paid – including salary, bonus, retirement and non-taxable benefits – $9.43 million, from $305,708 to $1,175,947.
¶
Beyond the financial elements, the USOPC reported on advances in athlete support and endorsements.
The Athlete Marketing Platform pilot program has had a positive, if limited impact:
● There were 1,045 athletes in the program in 2022, with 517 accepted deals that averaged $1,500 each. A total of $811,000 was paid to 277 separate athletes through the Platform.
● Some 67% of athletes at the Beijing Games 2022 had at least one personal endorsement deal, a major upswing vs. the 3% at the Pyeongchang Games in 2018.
The USOPC’s personal support programs also provided direct support to more than 600 athletes through Athlete Ombuds office, and the Athlete Legal Aid effort delivered nearly 300 pro bono hours of attorney time.
A continuing priority for the USOPC has been to support American candidates for positions on International Federations. Per the report:
“We also elected five individuals to new positions at the international level – Beau Welling, President, World Curling Federation; Max Cobb, Secretary General, International Biathlon Union; Kim Rhode, Vice President, International Shooting Sports Federation; Allyson Felix, IOC Athletes’ Commission and Clare Egan, World Anti-Doping Agency Athletes’ Commission – and re-elected Pat St. Peter, Council, International Skating Union.”
Those individuals are important representatives for the U.S. and more are needed. The selections of Welling and Cobb are especially impressive achievements.
~ Rich Perelman
Be the first to comment