12.3 International Olympic Committee Flashcards
What is the primary role of the International Olympic Committee (IOC)?
It governs the Olympic Games and associated national organizations, setting policies and overseeing all aspects of the event’s organization.
How does the IOC generate the majority of its revenue?
Over 70% of IOC revenue comes from broadcast rights; the IOC also earns from sponsorships, licensing, and other intellectual property.
Does the IOC pay athletes to participate in the Olympic Games?
No. The IOC does not pay athletes directly; any compensation typically comes from national federations, sponsors, or other employers.
Who bears most of the cost of hosting the Olympic Games?
The host city/country shoulders the vast majority of the expenses—construction, infrastructure, security, etc.—while the IOC pays very little of these costs.
What is the IOC’s legal structure and why is it notable?
The IOC is a non-profit sports ‘club’ headquartered in Switzerland. It is tax-exempt and is not required to disclose much of its financial information.
What are ‘economic rents’ in the context of the IOC?
They are excess revenues (beyond normal costs) accrued by controlling the Olympic brand, broadcast rights, and sponsorship deals—effectively the IOC’s large surplus.
How is IOC revenue theoretically supposed to be spent?
In principle, it should fund and promote the ‘Olympic movement,’ including support for national Olympic committees and sports development worldwide.
What criticism do people make about the IOC’s ‘vague goals’?
Critics argue it allows IOC members, officials, and executives to enjoy numerous perks and benefits, leading some to view the IOC as operating like a profit-maximizing firm rather than a pure non-profit.
If the IOC paid 50% of its revenue to competing athletes, about how much would each athlete receive?
Based on the IOC’s reported revenues, each athlete could theoretically get just over $250,000 per Olympic Games.
Why do some analysts compare the IOC to leagues like MLB, NFL, NBA, and NHL?
They note that professional leagues share a significant portion of revenues with players, suggesting the IOC could similarly allocate more to Olympic athletes.
What argument do advocates of paying Olympians make regarding the ‘Olympic movement’?
They claim that direct financial support for athletes would do more to support grassroots sports and the true spirit of the Games than indirect or purely symbolic programs.
Why might paying athletes be seen as beneficial beyond just fairness?
It could incentivize higher performance, reduce financial strain on athletes, potentially grow overall interest in the Games, and align Olympic compensation with other elite sports models.
