Chapter 3

Introduction

  • Overview of key developments in Olympic television rights.

Rule 49 Expansion

  • In 1958, Avery Brundage expanded Rule 49 into the IOC's first television-rights policy.

Challenges to Rule 49

  • Rule 49 proved weak, as it was retroactive and only applied to live broadcasts.

Frustrations with Brundage

  • Reason #1: Restrictive policies limited financial gains for International Federations (IFs).

  • Reason #2: Control over funding linked to support for Marquess of Exeter.

Ahearne's Demands

  • A share of Olympic television revenue for IFs.

  • Request for recognition as partners from IOC.

  • Threat to cancel Olympic ice hockey tournament without financial support.

IOC's Solution

  • In San Francisco 1959, IOC decided to grant IFs half of the funds from Tokyo and Innsbruck.

NOC Presidents' Outrage

  • NOC leaders, including Armand Massard, criticized the neglect of NOCs and dependency on government support.

Arguments from Guru Dutt Sondhi

  • NOCs deserved a share of television revenue due to their financial burdens.

Impact of Satellite Technology

  • 1957 saw the Sputnik launch, increasing demand for live broadcasts.

  • IFs pushed for greater television revenue shares.

Motivation Behind the Rome Formula

  • Giulio Onesti aimed to unite NOCs and secure financial support.

  • Meetings in 1965 advocated for 25% of television revenue for needy NOCs.

  • IFs demanded around 33% share.

Creation of the Rome Formula

  • Established in 1966 by Giulio Onesti and Exeter.

Revenue Distribution in the Rome Formula

  • NOCs, IFs, and IOC to receive one-third of the first million; two-ninths of the second million; one-ninth of extras.

  • OCOGs receive remaining revenue.

Creation of Finance Commission

  • Established in 1967 by Brundage and Lord Luke to oversee financial affairs and rights negotiations.

  • Lacked control over IOC spending in Lausanne.

Desired Solutions by IFs and IOC

  • IAAF wanted GAIF to manage television revenue distribution.

  • IOC preferred to manage distribution with equal payments for summer IFs based on gate receipts.

Distribution Solutions for IFs

  • Winter IFs would share their revenue equally among six.

  • Summer IFs would split initial revenue and base the rest on gate receipts.

Munich Massacre (1972)

  • 11 Israeli athletes/officials killed by Black September terrorists.

Challenges to Brundage's Presidency

  • Brundage faced challenges from Exeter (1952, 1964) and Jean De Beaumont (1968).