LONDON – CBC/Radio-Canada has been awarded the Canadian broadcast rights for the Sochi 2014 Olympic Winter Games and the Rio 2016 Olympic Summer Games, the International Olympic Committee (IOC) announced Wednesday.
While financial terms of the bid were not officially disclosed, a source with direct knowledge of the talks who asked to remain anonymous told Cartt.ca late Wednesday that the amount CBC committed to for the rights to both future Games is “less than half” of the $153 million which then-CTVglobemedia paid in 2005 for the Vancouver Winter Olympics and the London Summer Olympics. (Ed note: CTVglobemedia later brought in Rogers as a 20% partner in Canada’s Olympic Broadcast Media Consortium, which is currently broadcasting the Summer Games.)
Neither the CBC nor the IOC wants the actual figure paid made public yet. The IOC has likely never agreed to a lesser dollar amount from a broadcaster for the rights to future games – and this big of a drop-off from contract to contract has to be somewhat embarrassing to the IOC.
While the final, winning bid is less than half of what was paid last time, it is an increase over what CTV and CBC offered together earlier this year when the IOC flatly told the pair no, causing the two broadcasters to bring their short partnership to a close, said the source. The final figure may yet be revealed when CBC publishes its next annual report, however.
The best-guesses by various media outlets (us included) pegged those first bids in the $70-$80 million range, but the final CBC-CTV co-bid made in the spring was just $45 million (a number so low, negotiators thought the IOC might “throw us out the door,” said the source). While the previous CTV regime made the last deal, Bell Media was left holding the bag – and about $50 million in losses from Vancouver, according to CRTC documents and company sources.
The rights fee is just the entry cost, remember, and Bell Media knew it the last contract was far too rich. “Once you add in all of CTV’s costs and how much its prime time programming costs – which they have to put aside when they air the Olympics,” losing the significant simultaneous substitution revenue from its American programming, the big private broadcaster just couldn’t afford to go any higher than a split $45 million offer. “When you throw all that in, then the costs really start to skyrocket and the license fee has to go down,” added the source.
Plus, production costs from Vancouver came in at about $200 million, according to analysis of CTV aggregated financial data submitted to the CRTC and company sources. Revenue in the 2010 Olympic year for CTV also increased, by 18%, but not enough to make those Games (a raging success by Canadian sporting measures) turn a profit for the broadcaster.
CBC, on the other hand, can shift its shows at will since doesn’t have to worry about synching it with any U.S. broadcasters and won’t face anything like the revenue hit CTV would. In fact, with the Olympics, the CBC’s revenue will likely spike and the broadcaster is certain it can at least break even, if not make a profit during the two Games.
The new broadcast deal with the IOC also has no caveats in it based on whether or not players from the National Hockey League take part in Sochi 2014, said the source. The deal is done no matter what and besides, Canadians will watch just about any team wearing the Maple Leaf play in an international hockey tournament judging by the millions who tune into the World Junior Hockey Championships to watch kids most have never heard of play some shinny.
CBC and IOC said in the official press release that they have formed a new partnership “unique to Canadian Olympic broadcasts” where Canadians will have full access to the Games’ coverage on the platform of their choosing.
“This is excellent news for Canadians across the country who will once again experience the Olympic tradition with their public broadcaster”, said CBC/Radio-Canada president Hubert Lacroix, in the statement. “We've promised Canadians signature events on all our platforms that create opportunities to connect with each other and the country. I can't think of a greater opportunity to create those connections and generate pride than showcasing the Olympic Games and the performances of our own Canadian athletes.”
“Canada is a sports loving nation and Canadians are big fans of the Olympic Games,” added IOC president Jacques Rogge. “CBC/Radio-Canada has a wealth of experience in broadcasting sports and the Olympic Games and we are pleased that we will once again be joining forces with them in the future.”
Bell Media was quick to offer its congratulations to the CBC on its successful bid. (Ed note: CBC does not have the same number of media outlets as the current consortium and one would bet it will use its sublicensing rights to bring in a partner like Bell Media and its sports networks for those future Games.)
“We look forward to CBC/Radio-Canada building upon the high standards and expectations that we have established in Vancouver and London”, said president Kevin Crull. “We wish them the very best and offer them our complete support in presenting the next two Games."
CBC/Radio-Canada has broadcast the Olympic Games 19 times, most recently with the Beijing 2008 Olympic Summer Games.
– with files from Lesley Hunter
