Representatives of the three networks, Fox, NBC and CBS, declined to comment on this week’s bid process for the rights to broadcast the 2010 and 2012 Olympic Games. Dick Glover, who runs the Walt Disney Internet Group and is heading the ABC-ESPN negotiations, agreed to speak to Television Week, but only in general terms.
Glover called the bid process a very complex and sophisticated model. The equation, as he described it, is part history, part current climate, part projection, part valuation of assorted assets that could be leveraged, and part value from a consumer product perspective. “There are so many moving parts”, he said.
There have been reports that the bids are likely to range around $2 billion, but no one would comment except to say there is no minimum threshold as far as the IOC is concerned.
Television Week reports that what is known about the process is that each network has received a form telling it what fundamentals it must address. The networks have agreed to submit the outlines of their packages – what they can deliver over the air, via cable and electronic outlets including the Internet, wireless and other platforms – on a standard form.
Upon arriving in Lausanne each network will have two hours to make its pitch (one pitch per morning and afternoon on Thursday and Friday).
Sealed bids will be submitted simultaneously mid-Friday afternoon by the networks.
Following a cocktail reception Olympic officials, including a contingent from the U.S. Olympic Committee, will deliberate on the bids. According to Television Week its unknown how long it will take.
Television Week reports that some close observers feel it is conceivable that the bidding might be delayed enough that the host city for the 2010 Winter Games is announced on July 2. But the IOC prefers to award the TV rights’ first because it represents the most revenue to support the Games. It’s also crucial information for competing cities and the IOC in its host city selection.
