NBC Gets the Olympics, But Is It Fool’s Gold?
BigLeadSports : Business, Olympics June 8th. 2011, 10:21amNBC lost about $200 million on the 2010 Winter Games in Vancouver and anticipates losing about $250 million on the 2012 Summer Games in London.
But that did not stop the new conglomerate of Comcast-NBC Universal from putting in a winning bid of $4.4 billion for the 2014
Winter Games in Sochi, Russia; the 2016 Summer Games in Rio de Janeiro; and the 2018 Winter and 2020 Summer Games, for which the host cities have not yet been determined.
Now it remains to be seen whether the network that has had U.S. rights to every Olympics since 1998 has acquired a gold medal or Fool’s Gold.
“We are excited to get started and continue the great legacy and work that has been the relationship between NBC and the Olympics,” Brian Roberts, CEO and Chairman for Comcast, parent company of NBC Universal, said during a press conference on June 7 following the decision by the IOC. “We couldn’t be more proud.”
For the U.S. TV rights, NBC outbid Fox, whose bid was put at $3.4 billion by analysts, and ESPN, which bid $1.4 billion for the 2014 and 2016 Games.
The Olympics would have been the first for Fox. ESPN sibling ABC held the U.S. TV rights to the Olympics from 1964 through 1988, with the last Summer Games broadcast in 1984 and the last Winter Games broadcast in 1988.
CBS paid $50,000 for the U.S. TV rights to the 1960 Winter Olympics in Squaw Valley, Calif., the first time the Games were broadcast in the U.S. CBS did not participate in this bidding process. CBS CEO Les Moonves, who has been there and done that, said the Olympics were not “cost effective.”
In 2003, NBC paid $2.2 billion for the U.S. TV rights to both the 2010 Winter Olympics in Vancouver and the 2012 Games.
According to Roberts, “We’ve been clear from the beginning that we want to be disciplined and responsible,” Roberts said. “We think this will be a profitable relationship for NBC Universal. Having eight more years, we will have an opportunity to build up a lot of the assets at NBC Universal . . . It was unanimous among our team that having [the Games] for the longer term will help us achieve that goal.”
Although early in the process, it is expected that the cost of a 30-second spot will be higher than the most recent Olympics. NBC charged between $360,000-$490,000 for the 2010 Winter Games in Vancouver and and average of $750,000 for the 2008 Summer Games in Beijing.
This is the second multi-billion dollar TV sports deal for Comcast-NBC Universal this year. In April, the broadcast company signed a $2 billion, 10-year deal with the National Hockey League.
According to Roberts, “The vision for our new Comcast-NBC Universal was to create new platforms and technologies to distribute the very best content. Every two years the Olympic Games provides iconic content for us to deliver on all platforms. We are proud to continue the rich heritage and long association that NBC has had with the IOC.”
NBC Sports Group chairman Mark Lazarus said the rights deal encompasses ” . . . TV, tablets, mobile broadband . . . [all platforms] now known, to be known and those still to be conceived. It’s all encompassing. That’s part of the value of our new company… one of the great joys of this deal.”
“We had an obligation to pick the best bid on behalf of the entire Olympic Movement,” said IOC Executive Board member Richard Carrión, who, along with IOC President Jacques Rogge, led the negotiations. “We assessed each bid against a thorough set of criteria and believe that the long-term nature of this agreement will not only ensure fantastic Olympic broadcast coverage in the US, but also support the long-term financial stability of the Olympic Movement as a whole. NBCU has proven its worth time and again over the years and we’re very excited to continue working with them.”
The three candidate cities for the 2018 Winter Olympics are Munich, Germany; Anney, France; and PyeongChang, South Korea. The bidding process for the 2020 Summer Games began in May.
The 2018 Olympic Winter Games host city vote will take place at the 123rd IOC Session in Durban, South Africa, in July 2011. The 2020 Olympic Games host city vote will take place at the 125th IOC Session in Buenos Aires, Argentina, in September 2013.

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35 Responses to “NBC Gets the Olympics, But Is It Fool’s Gold?”
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June 8th, 2011 at 10:37 AM
Provide me with an estimate of the number of commercial spots that will be shown over the two week period and I’ll tell you if it’s fool’s gold or not.
With the content being broadcast on several different channels in the NBC/Comcast family, I can’t imagine it’s a flat rate for NBC and for something like CSN, MSNBC or whatever else will be broadcasting some of the smaller events.
They probably overpaid, but NBC doesn’t have a whole lot of sports outside of hockey and golf right now. Other than Sunday Night Football, they’re struggling to maintain with the other networks for primetime sports programming. They did what they had to, in a short sighted manner of course.
June 8th, 2011 at 10:41 AM
Is BigLeadSports an AP mouthpiece? Because outside of the “fools gold” line, this read like an AP bulletin.
June 8th, 2011 at 10:44 AM
Had to get out of that ballin post. I’m pretty sure a lot of people in their caught Lebron sleeping with their sisters. The unabashed hate for someone who isn’t what THEY want him to be is annoying.
/pulling for the Mavs
//respects Lebron’s game
June 8th, 2011 at 10:45 AM
in their
in there. dammit.
June 8th, 2011 at 10:45 AM
Don’t start that. Please. I stayed out of Ballin’ for a reason.
June 8th, 2011 at 10:47 AM
Then lets talk about how odd this post is.
June 8th, 2011 at 10:47 AM
Come on Yardwork… I got a bone to pick with the Red Sox and dirty Lester.
June 8th, 2011 at 10:47 AM
Don’t start that. Please. I stayed out of Ballin’ for a reason.
Sorry, didn’t see you hanging out up there SC.
June 8th, 2011 at 10:48 AM
Then lets talk about how odd this post is.
The author is listed as “bigleadsports.” Is that a machine?
June 8th, 2011 at 10:49 AM
I’m going to use the comments section in the BigLeadSports Business post photos to work on my strike thru ability
June 8th, 2011 at 10:49 AM
It is. But it’s not the first from BLS. They’re sports business related which are kinda interesting, but yes, it totally does not read like a blog post. But until dirt showed me how to AdBlock the vanity panel on the front page, that didn’t look like a blog either.
I enjoyed the beer deal one for the NHL a little bit. Didn’t read the soccer one.
June 8th, 2011 at 10:51 AM
You don’t get it. Whatever.
June 8th, 2011 at 10:51 AM
Are the Olympic rings burning anyone else’s retinas out a little? Those things are fluorescent.
June 8th, 2011 at 10:51 AM
Magic happens when you travel through the Looking Glass.
June 8th, 2011 at 10:52 AM
This may shock you TBL…but most sports-television contracts are losing matters. The goal is to get 10-20 million people per night to see that there is a new comedy starring Paul Riser and Seth Green, or a poorly put together drama produced by JJ Abrams (or his studio with his name thrown on it recklessly).
Both of which you immediately start to drool over like a 13 year old at a Bieber concerts.
June 8th, 2011 at 10:52 AM
Yeah, its so dirty that a cutter that cuts in might hit a right handed batter, and that they dont get out of the way because they dont even realize its cutting.
June 8th, 2011 at 10:53 AM
Are the Olympic rings burning anyone else’s retinas out a little? Those things are fluorescent.
I was unaware that neon green was an olympic color.
June 8th, 2011 at 10:54 AM
I don’t know why, but I can’t stop laughing at the Olympic rings picture; looks like its from Microsoft Paint. Terrible story time…
My buddy had give a presentation on Lewis and Clark back in high school and one of the requirements was to have a visual aid. He shows up five minutes before class not realizing this and goes to a computer to print out a picture to use. The internet wasn’t working, so he went into Microsoft Word and printed out a picture from Clip Art of a mountain.
He said, “Here is a picture of the terrain Lewis and Clark saw while on their adventure”.
I just about died in my seat from laughter.
June 8th, 2011 at 10:54 AM
Well, when AJ gets “wild” tonight and Adrian gets one in the earhole, I don’t want any bitching from you neither.
Let’s save the rest for Yardwork. I have a turd to drop on the Cu8s for the losing streak of eight.
June 8th, 2011 at 10:55 AM
Right, that’s the same thing.
June 8th, 2011 at 10:56 AM
I have a turd to drop on the Cu8s for the losing streak of eight.
They added a Gretzky to the organization, sky’s the limit.
June 8th, 2011 at 10:56 AM
Thats awesome.
June 8th, 2011 at 10:57 AM
the olympics is one of those things that is pretty cool while it goes on, but the time before and after I could really care less about.
June 8th, 2011 at 10:57 AM
Hey, don’t blame me. I don’t write the rules, I just make them up as I go along.
June 8th, 2011 at 10:58 AM
That’s funny stuff, Badger.
did anyone actually believe it?
June 8th, 2011 at 10:59 AM
Sigh.
June 8th, 2011 at 10:59 AM
Wouldn’t the “rule” be a fastball in the back?
June 8th, 2011 at 11:00 AM
I thought the same thing.
June 8th, 2011 at 11:00 AM
Constipated?
June 8th, 2011 at 11:02 AM
Nah. Even the teacher thought it was pretty funny though.
June 8th, 2011 at 11:07 AM
Why would you bid on a contract that makes you lose money? Just because you don’t want someone else to have it? Isn’t NBC in big financial trouble?
June 8th, 2011 at 11:10 AM
You’re thinking in a micro sense as opposed to the macro of the entire network…it was covered earlier that you want stuff like the Super Bowl because you can slap ads for your shows on there and get the maximum exposure out there so don’t think of it as losing money so much as it is an investment in future earnings
June 8th, 2011 at 11:56 AM
You mean like a bowl game?
June 8th, 2011 at 11:59 AM
For the school getting its name out there to recruits and prospective students? Absolutely
June 8th, 2011 at 1:08 PM
The Olympics are so OVER. They are like the big over-stuffed Sunday newspapers of old, filled with something for everyone. They are over-hyped, maudlingly presented and manipulated. Quick, who hold the world record in the 800 fly? No one knows or cares. The Olympics are a real estate scam.