Don't Blame Olympics Loss on Rio; Blame It on Cable - Simon Applebaum - MediaBizBloggers

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Why did the U.S. not only lose its campaign to stage the 2016 Summer Olympics in Chicago, but get eliminated first among the four cities of the world contending for that right?

The more you explore, the more you conclude the result had nothing whatsoever to do with the merits or demerits of Chicago's bid, or President Obama's efforts for support of that bid. Ditto anything to do with the merits or demerits of Rio de Janeiro's bid – and don't hold back congratulations to all involved in that winning effort, which will bring the Olympic Games to South America for the first time.

So what did Chicago's quest in? The International Olympic Committee's reaction to – of all things – a proposed cable network. Let that sink in – not on what should determine who gets the games, namely what cities propose and how well those options can play out – but on launching a cable network.

We're talking about the U.S. Olympic Network announced this summer by the U.S. Olympic Committee and Comcast, the nation's largest cable operator. A network that would showcase the U.S. Olympic movement through live event coverage, news, documentaries, athlete profiles and more. Launching after the 2010 Winter Olympics next February in Vancouver, B.C., the channel also would take over U.S. Olympic Trials programming after NBC's current Trials deal winds up after the Vancouver games.

You would think the IOC would be happy with this. A new way to promote this country's Olympics movement, and in turn, what the world is up to. What could be bad about that? Instead, the IOC went ballistic. As in, how dare you pull this venture together without consulting us first? Then after questioning the premise, committee officials made this threat in both public and private forums: go ahead with your channel, and we'll see to it that Chicago won't win the 2016 Summer games, plain as that. Your hanging sword strategy.

That forced the USOC into backpedaling mode. Weeks after announcing the network in a conference call with reporters at the famed Herb Allen Sun Valley media summit, USOC board chairman Larry Probst met with IOC president Jacques Rogge in Berlin. After that meeting, Probst and acting USOC CEO Stephanie Streeter announced the channel would be delayed indefinitely, and would not go forward without the IOC's blessing. There's been no word since on when the channel will debut.

In a CNBC "Power Lunch" interview just after Rio won the 2016 games, NBC Sports chairman Dick Ebersol acknowledged that while Chicago had "an exceptional bid" and did everything by the book to win fair and square, they lost in the first round because "the IOC is very disappointed in the relationship with the USOC...that's at the root of what happened today." He stopped short of saying the proposed channel was the key factor, noting that the IOC has a long-running tiff with the USOC over revenue-sharing for the games. Earlier in various newspaper reports, Ebersol criticized the committee's cable net plans, suggesting they would lead to trouble.

But Alan Abrahamson, a well-regarded blogger with Universal Sports, the diginet running coverage of Olympic sports (co-owned by NBC), believes the proposed USOC net "re-ignited" the IOC rift, and did lead to the quick Chicago knockout last month. "It's that sort of enmity that gets you but 18 votes in the first round," he writes. That network deal "produced the 2016 vote's stunning surprise."

Here's my first question: why isn't anyone taking the IOC to task for its bullheaded, backward attitude? The USOC had every right to organize a cable network focusing on Olympic action in this country first, world second. It had every right to get this channel launched without permission from the IOC. Even if you believe the USOC should have notified the IOC of what they were up to, this is still a USOC venture. It should exist or not by what the USOC does, not the IOC.

I understand Ebersol's stand. His company has the Olympics TV rights, awarded by the IOC, and he has to toe the IOC line to be in contention for the next TV rights package, which is anticipated to have ESPN and other players in the hunt. Plus Universal Sports, still pushing for widespread cable/satellite distribution, would be squarely in the crossfire of a USOC channel.

That's not the case with the IOC's argument. Why would you not welcome another opportunity to promote your cause? Why would you be so petty about an effort that can only do your organization good? And ultimately, why would your membership let this be THE straw that breaks the U.S., much less any country's back, in awarding your competition?

One final question: where's Comcast in all this? Why is Brian Roberts and company so silent about the situation? From the start, Comcast has made little public comment on its USOC channel partnership (Comcast executives were absent from the announcement call), and nothing in reaction to the USOC's launch backtrack. Even if you're trying to put an NBC Universal alliance together, how about showing some guts here and taking a stand?

We may not get answers to those questions from anyone, but we're seeing the fallout of all this. Chicago organizers disappointed and questioning what went wrong to no end. President Obama taking hits from all sides over his quest to put Chicago's bid over the top. The USOC is in executive turmoil, with Streeter set to leave, Probst's job in jeopardy and lots of people on a head-rolling binge. "The only certainty for the near future for the USOC," Abrahamson blogs, "is profound uncertainty." Meanwhile, every indication is that another U.S.-held Summer Olympics is a great while off.

All this because of a cable network. A cable network. How shameful is that?

Simon Applebaum is producer/host of Tomorrow Will Be Televised, the Internet radio program covering the TV scene. The program runs Monday and selected Friday afternoons from 3-4 p.m. Eastern time/noon-1 p.m. Pacific time over www.blogtalkradio.com. Replays are available 24/7 at www.blogtalkradio.com/simonapple04, and on podcast over various Web sites arranged by www.sonibyte.com.

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