United States Olympic & Paralympic Committee

History

Upon the founding of the International Olympic Committee in 1894, the two American IOC members – James Edward Sullivan and William Milligan Sloane – formed a committee to organize the participation of American athletes in the 1896 Summer Olympics, in Athens, Greece. In 1921, the committee adopted a constitution and bylaws to formally organize the American Olympic Association.

From 1928 to 1953, its president was Avery Brundage, who later went on to become the president of the IOC, the only American to do so.

In 1940, the AOA changed its name to the United States of America Sports Federation and, in 1945, changed it again to the United States Olympic Association. In 1950, federal mandate allowed the USOA to solicit tax-deductible contributions as a private, non-profit corporation. After several constitutional revisions were made to the federal charter in 1961, the name was changed to the United States Olympic Committee.

The Amateur Sports Act of 1978 (later renamed in the Ted Stevens Olympic and Amateur Sports Act) established the USOPC, then referred to as the USOC (United States Olympic Committee), as the coordinating body for all Olympic-related athletic activity in the United States, specifically relating to international competition. The USOPC was also given the responsibility of promoting and supporting physical fitness and public participation in athletic activities by encouraging developmental programs in its member organizations. The provisions protect individual athletes, and provide the USOPC's counsel and authority to oversee Olympic and Paralympic business in the United States.

The public law not only protects the trademarks of the IOC and USOPC, but also gives the USOPC exclusive rights to the words "Olympic", "Olympiad" and "Citius, Altius, Fortius", as well as commercial use of Olympic and Paralympic marks and terminology in the United States, excluding Northern Mariana Islands, American Samoa, Guam, Puerto Rico and the U.S. Virgin Islands, which fall under the authority of separate NOCs and NPCs.

One of the many revolutionary elements contained within the legislation was the Paralympic Amendment – an initiative that fully integrated the Paralympic Movement into the USOPC by Congressional mandate in 1998.

Governance

The USOPC is governed by a 16-member board of directors, led by a chairman, and has a professional staff, headed by a CEO. The USOPC also has three constituent councils to serve as sources of opinion and advice to the board and USOPC staff, including the Athletes' Advisory Council (AAC), National Governing Bodies Council (NGBC), and Multi-Sport Organizations Council. The AAC and NGBC each have three representatives on the board, while six members of the board are independent. The USOPC CEO and all US members of the IOC and IPC (Anita DeFrantz, James Easton, and Angela Ruggiero) are ex officio members of the board.

The USOPC named Scott Blackmun CEO on January 6, 2010. Blackmun previously served as acting chief executive officer (2001), senior managing director of sport (2000), and general counsel (1999). He also serves on the IOC's Marketing Commission and on the board of the National Foundation for Fitness, Sports, and Nutrition. He retired in 2018 and was replaced by Sarah Hirshland.

On October 2, 2008, Lawrence F. Probst III was elected chairman of the USOPC board of directors. Probst also serves on the IOC's International Relations Commission, a post he assumed by IOC appointment on March 10, 2011. Probst retired in 2019 and was replaced by Susanne Lyons.

National Governing Body members

National Governing Bodies are organizations that look after all aspects of their individual sports. The NGBs are responsible for the training, competition and development of athletes for their sports, as well as nominating athletes to the U.S. Olympic, Paralympic, Youth Olympic, Pan American, and Para-Pan American Teams. There are currently 39 Olympic summer sport NGBs in the United States and eight Olympic winter sport NGBs. Sport climbing, skateboarding, and surfing were added to the Olympic roster of sports for the 2020 Olympics in Tokyo, Japan. Some Olympic sports are not featured in the Paralympics, that is why there are more solely Olympic NGBs rather than those that manage both Olympic and Paralympic divisions. Additionally, some Paralympic sports, like wheelchair basketball, boccia, goalball, powerlifting, and wheelchair rugby, are governed by U.S. members of International Paralympic Federations.

Fundraising efforts

The United States Olympic & Paralympic Committee is a 501(c)(3) not-for-profit corporation supported by American individuals and corporate sponsors. Unlike most other nations, the USOPC does not receive direct government funding for Olympic programs (except for select Paralympic military programs).

The USOPC's main sources of revenue are television broadcast rights, sponsorships and philanthropy in the form of major gifts and direct mail income. Additional funding comes from the government for Paralympic programming, as well as other sources such as the city of Colorado Springs and the U.S. Olympic and Paralympic Foundation.

The USOPC asks for contributions from time to time using public service announcements and other direct solicitations. Also, some proceeds from sales in its online store benefit the committee.

The USOPC currently does not hold telethons or other fundraising events, but has in the past.

Criticism

There has been some financial conflict between the USOPC and International Olympic Committee (IOC), with some pointing out the frequent leadership changes of USOPC, and USOPC trying to broadcast the Olympics using its own television network, which the IOC discouraged. USOPC president Peter Ueberroth allegedly stonewalled a negotiation between IOC and USOPC to discuss the revenue sharing of the US broadcasts with IOC. Under a long-standing contract, the USOPC has received a 20 percent share of global sponsorship revenue and a 12.75 percent cut of U.S. broadcast rights deals (not that much given the fact that the USOPC is the only NOC in the world not to receive government funding, other countries fund their Olympic Committees, plus more than a half of the Olympic global sponsors are American companies, but the USOPC received only 20% (not 50%) of sponsorship revenue). The IOC believed the USOPC share, set out in an open-ended contract dating to 1996, was excessive and should be renegotiated. The USOPC argued that it saved the Olympic movement by hosting the most financially successful Games in the history of the Olympics in 1984. In the 1980s, after the disastrous and unprofitable 1976 and 1980 Olympics, many believed the Olympic movement was in decline. However, the U.S. hosted the most financially successful games without government funding (unlike Montreal 1976 and Moscow 1980) and revitalized the Olympic movement. The failure of the 2012 and 2016 US Olympic bids was partly blamed by some on USOPC. For instance, NBC television executive Dick Ebersol said after the failed 2016 bid, "This was the IOC membership saying to the USOPC there will be no more domestic Olympics until you give more to the IOC". A new revenue-sharing agreement was signed in 2012.

USOPC has also been criticized for not providing equal funding to Paralympic athletes, compared to Olympic athletes. In 2003, a lawsuit was filed by American Paralympic athletes Tony Iniguez, Scot Hollonbeck and Jacob Heilveil. They alleged that the USOPC was underfunding American Paralympic athletes. Iniguez cited the fact that the USOPC made health care benefits available to a smaller percentage of Paralympians, provided smaller quarterly training stipends and paid smaller financial awards for medals won at the Paralympics. American Paralympians saw this as a disadvantage for Paralympic athletes, as nations such as Canada and the United Kingdom support Paralympians and Olympians virtually equally. The USOPC did not deny the discrepancy in funding, but contended that this was due to the fact that it did not receive any government financial support. As a result, it had to rely on revenue generated by the media exposure of its athletes. Olympic athletic success resulted in greater exposure for the USOPC than Paralympic athletic achievements. The case was heard by lower courts, who ruled that the USOPC has the right to allocate its finances to athletes at different rates. The case was appealed to the Supreme Court, who on September 6, 2008, announced that it would not hear the appeal. However, during the time the lawsuit had lasted (from 2003 to 2008), the funding of Paralympic athletes more than tripled. In 2008, $11.4 million was earmarked for Paralympic athletes, up from $3 million in 2004. In 2018, the USOPC announced it would increase its Operation Gold Awards for U.S. Paralympic athletes to be equal to payments earned by U.S. Olympic athletes.

Training facilities

The USOPC operates Olympic Training Centers at which aspiring Olympians prepare for international competition:

The main facility in Colorado Springs, Colorado, offers both summer and winter sports training in a variety of sports. It houses the USOPC headquarters and many permanent athletic venues.

The U.S. Olympic Center in Lake Placid, New York, is a facility for winter sports athletes. Permanent facilities include an ice hockey/figure skating arena, a bobsled run, and a luge run.

Although catered toward elite athlete training, these complexes are also open to the public (the only Olympic training facilities in the world to be open to the public) and offer a variety of services, including tours and regular camps and competitions for various domestic and international sport programs.

Additionally, the USOPC partners with 16 elite training sites across the country, to provide U.S. athletes with Olympic-caliber facilities that positively impact performance. Facilities with U.S. Olympic training site designation have invested millions of dollars in operating, staffing, equipment and training costs. These sites are often selected to host U.S. Olympic Team Trials and support Team USA athletes prepare for the Olympic Games.

Awards

The USOPC administers a number of awards and honors for individuals and teams who have significant achievements in Olympic and Paralympic sports, or who have made contributions to the Olympic and Paralympic movement in the U.S.

USOPC Athlete of the Year – Awards are given annually to the top overall male athlete, female athlete, Paralympic athlete, and team, from among the USOPC's member organizations.

USOPC Coach of the Year – Awards are given annually to the top national, developmental, Paralympic, and volunteer coaches, and for achievement in sports science.

U.S. Olympic Hall of Fame – The Hall of Fame honors Olympic and Paralympic athletes, teams, coaches, and others who have demonstrated extraordinary service to the U.S. Olympic movement.

U.S. Olympic Spirit Award – This award is given biennially to athletes demonstrating spirit, courage, and achievement at the Olympic and Paralympic Games.

Jack Kelly Fair Play Award – presented annually to an athlete, coach or official in recognition of an outstanding act of fair play and sportsmanship displayed during the past year.

Rings of Gold Award – Awards are presented annually in honor of an individual and a program dedicated to helping children develop their Olympic or Paralympic dreams and reach their highest athletic and personal potential.

Olympic Torch Award – presented annually to an individual who has positively impacted the Olympic Movement and has contributed to promoting the Olympic Ideals throughout the U.S.

When a US athlete wins an Olympic medal, as of 2016, the USOPC paid the winner $25,000 for gold, $15,000 for silver, and $10,000 for bronze. The USOPC increased the payouts by 25% to $37,000 for gold, $22,500 for silver, and $15,000 for bronze beginning in 2017. These numbers are significantly lower than in other countries, where Olympic gold medalists receive up to $1 million from their governments for a gold medal. Since 2018, payouts to Paralympic athletes have been the same as to the Olympians. The International Paralympic Committee noted that "'Operation Gold Awards' for [American] Paralympic athletes [would] be increased by as much as 400 percent."

ANOC Awards

Association of National Olympic Committees Gala Awards 2014: Most Successful NOC of London 2012

Partnerships

The USOPC generates support from two principal types of Olympic sponsorship: worldwide and domestic. Each level of sponsorship grants companies different marketing rights and offers exclusive use of designated Olympic and Team USA images and marks. Under the domestic sponsorship program, the USOPC also has special partnerships with various licensees, suppliers and outfitters that provide vital services and products to support Team USA. Across all levels of sponsorship, the USOPC is committed to preserving the values of the Olympic properties and protecting the exclusive rights of Olympic sponsors.

Worldwide

Created by the International Olympic Committee in 1985, the Olympic Partners TOP program is the highest level of Olympic sponsorship, granting exclusive worldwide marketing rights to the Olympic Games and Winter Olympic Games. Managed by the IOC, the TOP program supports the OCOGs, NOCs and the IOC.

Operating on a four-year term in line with each Olympic quadrennium, the TOP program features approximately 10 worldwide Olympic Partners, with each receiving exclusive global marketing rights within a designated product or service category.

US Domestic

The Olympic Games domestic sponsorship program grants marketing rights within the host country or territory only. Under the direction of the IOC, the USOPC manages the domestic program within the United States. Like the worldwide TOP program, the domestic sponsorship program operates on the principle of product-category exclusivity. Approximately 20 corporations currently participate in the U.S. domestic sponsorship program, which enables the USOPC to deliver increased funding and equitable distribution to National Governing Bodies. The establishment of these long-term domestic partnerships helps generate independent financial stability for American athletes while ensuring the viability of the Team USA on the international stage.

Licensees

The USOPC has granted licensing rights to nearly three dozen companies to manufacture and distribute official licensed products, which convey the rich history of American culture and commemorates the Olympic Movement. These companies are referred to as licensees and pay a royalty for each item sold bearing any related Olympic, USOPC or Team USA marks.

Media coverage

NBCUniversal has held the American broadcasting rights of the Summer Olympics since 1988, and the broadcasting rights of the Winter Olympics since 2002. In 2011, NBC agreed to a $4.38 billion contract with the International Olympic Committee to broadcast the 2014, 2016, 2018, and 2020 Games. On May 7, 2014, NBC agreed to a $7.75 billion contract with the IOC to broadcast the 2022, 2024, 2026, 2028, 2030, and 2032 Games. As such, NBC Olympics is the IOC's, and by extension the Olympic movement's, highest revenue stream. The IOC distributes Olympic broadcast revenue through Olympic Solidarity – the body responsible for managing and administering the share of the television rights of the Olympic Games. Under the current format, the revenue is allocated to the NOCs – including the USOPC – the local organizing committee and International Federations.

In 2009, the USOPC and Comcast announced plans for The U.S. Olympic Network, which would have aired Olympic-sports events, news, and classic footage. However, the USOPC met opposition from the International Olympic Committee, which preferred to deal with NBCU (and its then-new Universal Sports joint venture). Later, Comcast purchased NBCUniversal, and eventually Universal Sports was discontinued, with interim programming agreements to air events on NBCSN and Universal HD made. On July 1, 2017, NBCUniversal launched the Olympic Channel on the former channel space of Universal HD; the USOPC is a partial operating partner in the network with the NBC Sports Group and it contains archived content from the USOPC.

Relationship between IOC and USOPC

In May 2012, USOPC's leaders negotiated a resolution with the IOC, addressing a decades-long revenue sharing debate and paving the way for a peaceful future between the two bodies. The new agreement elevates the USOPC's global perception and restructures how worldwide Olympic sponsorship and U.S. TV revenues are shared, while providing for USOPC contributions to Olympic Games costs.

The agreement, revising 27-year-old terms governing the USOPC's shares of worldwide Olympic sponsorship and U.S. broadcast rights revenue, preserves the USOPC's future revenue at current levels and includes an escalator for inflation. Under the terms of the new agreement, the USOPC is guaranteed seven percent of the U.S. broadcast revenue and 10 percent of the IOC's global sponsorship revenue. The agreement guarantees the USOPC approximately $410 million per quadrennium, plus inflation and a percentage of revenue from new growth areas, beginning in 2020.