IOC opens bidding process for the Olympic's TV rights

net1

The International Olympic Committee (IOC) is to open a tendering process in early March for the sale of European Olympic broadcast rights for the future Olympic Games for winter 2010, in Vancouver, and summer 2012.

The launch of the European bidding process by the IOC follows the successful sale last year of the US rights to the two events in a deal with NBC worth $2.2 billion. As with the US deal, European pay-TV operators will be invited to submit bids for some of the coverage. Winning bids will be announced at the end of April.

In its tender process for Europe, the IOC will be considering all options - that is, pan-European, multi-territory or country-by-country - and it will follow the same procedures as for the US market. The bids will be examined on 23 April in Lausanne by a working group chaired by the IOC President Jacques Rogge.

Commenting on the decision, Rogge said, "Given the momentum achieved last year with the negotiations in the US, and the ensuing high level of interest that was generated, particularly in Europe, the IOC has decided to approach the market and open a tender process in this region".

Rogge, added that the committee was determined to ensure that coverage of the two events reaches the widest possible audience. However, he said, certain "niche" Olympic events could be shown on pay-TV channels. "We have not yet gone into these details," he said. "It will very much depend on the intentions of the various broadcasters."

While the IOC has indicated it will sell the rights for two games, it is prepared to listen to offers from broadcasters keen to bundle the rights for additional future games. "What we are not going to accept, which the IOC did in the past, is a bid from a broadcaster that insists on there being no tender or competition," said Rogge.

While values of other sports rights have declined, there is still considerable interest in acquiring the rights to Olympic Games. The $2.2 billion to be paid by NBC for the 2010 and 2012 games represents a substantial increase on the $2.3 billion it paid to cover the 2004, 2006 and 2008 Olympics. One of the factors behind the increase in the US was the IOC's determination to offer the rights to new technologies, such as broadband, which are expected to be in much wider use by 2010.