April 20, 2024

Olympic Wheel of Fortune

Instead, on Sunday, Sept. 8, you’ll see the leaders of three sports federations — wrestling, squash and baseball-softball, which combined last year — presenting finely honed sales pitches to the 104 members of the International Olympic Committee. After each 20-minute spiel, there will be 10 minutes of questions and answers. At some point, the committee members will test their electronic voting equipment with an irrelevant warm-up question. (The group was once asked to choose a favorite of three oceans; the Atlantic won.) Then the members will decide a matter of genuine import: Which of these sports will join the Olympic Games in 2020?

It will be the culmination of a contest that began two years ago and has cost the finalists millions of dollars. But for the winner, the prize is so big that it’s hard to value. Actually, part of it can be valued. Every sport gets a cut of the money generated by the Games’ broadcast and revenue deals, with each share determined by the sport’s popularity, measured by the number of spectators, television viewers and other factors. The pot to be divvied up for sports in the London Games last year is $520 million.

More important, the sport gets the global exposure of billions of television and online viewers and a place in the sports pantheon in which countries worldwide invest, simply because the sport is part of the Olympics. Suddenly, there are youth leagues and commercial endorsements. Medals are at stake, and with them a chance to burnish national self-image.

“The U.S. is a special case because, unlike most countries, it doesn’t have a direct federal government program for sports,” says Michael Payne, the I.O.C.’s former marketing director. “But look at Turkey. It’s currently spending $500 million a year on sports development, and all of that money goes to Olympics-related sports. You’re either at the table or you’re not.”

In the United States, the imprimatur of the Games means universities pay attention. A few years ago, it was hard to find a college team in women’s beach volleyball. The sport is now an Olympics favorite, and there are about 34 college teams, says Doug Beal, the chief executive of USA Volleyball.

“It’s impossible to overstate how significant it is to be included in the Olympics,” Mr. Beal says. “Participation has increased by a factor of 100 or 200. We’ve got high-performance camps, a national junior tour. The Olympics drives kids’ interest. They see it on TV, they identify with the medal winners and they want to play that game.”

This is squash’s third attempt to enter the Olympics, which has capped the total number of sports at 28, and it is the only sport among the finalists that has never been in the Games.

For squash’s ardent fan base, this is more than a little confounding. Every four years, when synchronized swimming scissor-kicks its way onto the world stage, squash aficionados ask: If that sport is in the disco, how long will squash be stuck behind the velvet rope?

Not much longer, if Mike Lee has his way. He is chairman of Vero Communications, a sports lobbying consulting firm that is part of a small but growing industry for campaigns like this. Mr. Lee, a onetime political consultant who is based in London, was hired by the World Squash Federation to oversee its Olympic bid. Among Vero’s recent achievements is guiding rugby sevens into the 2016 Olympics in Rio de Janeiro. Squash was one of the sports that rugby sevens bested.

Working in politics and Olympic sports is not that different, Mr. Lee said. Both need compelling narratives and both need to cater to voters. The squash narrative, as framed by Vero, is all about the game’s global reach, its embrace of innovation and its easy integration into the Games — the event would involve just 64 players from around the world, 32 men and 32 women, in a glass court that could be built anywhere.

“In the final stage of this, we’re also giving a push to the very salient and important point that squash is the only truly new sport in terms of the Olympic program,” Mr. Lee said. “That will feature significantly in our final presentation in Buenos Aires.”

What exactly is the Olympics looking for? The I.O.C. has a dauntingly long list of 39 criteria. The sport should offer gender equity (medals to men and women in roughly equal numbers), excellence around the world (as opposed to a few countries) and popularity among fans and sponsors. Ease of broadcasting the sport is another factor, along with the cost of building a place for competition. There is also the vague but all-important “value added,” defined as “value added by the sport to the Olympic Games; value added by the Olympic Games to the sport.”

Article source: http://www.nytimes.com/2013/09/01/business/olympic-wheel-of-fortune.html?partner=rss&emc=rss

Drug Makers Increasingly Join Fight Against Doping

Now, a growing number of pharmaceutical companies are trying to prevent their drugs from the same fate by joining with antidoping officials to develop tests to detect the illegal use of their drugs among athletes.

Two major drug makers, Roche and GlaxoSmithKline, have begun evaluating every new drug candidate for its potential to be abused by athletes and have agreed to share information about those products with the World Anti-Doping Agency, known as WADA, which polices drug use in international sports. Several other smaller companies have provided proprietary information about specific drugs. A conference in Paris in November dedicated to the topic drew 250 participants.

The development reflects a significant shift from the days when drug makers paid little attention to how their products could be abused by athletes, said David Howman, the director general of the antidoping agency. In the past, drug makers “felt that any publicity in relation to antidoping control would be negative,” he said. “But what they discovered is the opposite happened.”

Instead of shying away from such stories, Roche and Glaxo have promoted their involvement as an example of good corporate citizenship. Last year, Glaxo went so far as to sponsor the testing laboratories for the London Games, the first time in Olympic history that an antidoping laboratory had a named corporate sponsor.

Pauline Williams, who leads the team at Glaxo that runs the antidoping initiative, said the cooperation with WADA grew out of that sponsorship. “What the London 2012 involvement led to was a real pride and willingness, and a positive attitude toward this continued engagement,” she said. Since the start of the program, the company said it has shared information about four of its projects, and development of a test for one drug is under way.

Antidoping officials have long sought information from drug companies. For instance, Amgen, which developed EPO, helped develop a test for Aranesp, another of its drugs that has been used in doping, in advance of the 2002 Salt Lake Olympics. But such arrangements were ad hoc and fairly simple, said Olivier Rabin, the antidoping agency’s science director. “It was almost more by chance when it was happening,” he said.

Relationships between antidoping officials and pharmaceutical companies have sometimes been tense. In 2006, Amgen was criticized for sponsoring the Tour of California at a time when EPO abuse was rampant among cyclists. Although the company said it had sponsored the race to raise awareness about doping, it was later revealed that the organizers had failed to test for EPO, short for erythropoietin, a synthetic hormone that, like Aranesp, stimulates the production of red blood cells.

“They were associated with some things in the past which we felt were probably inappropriate,” Mr. Howman said. “What we had to do was start the conversation from scratch, and say let’s see how we can work together.”

Steven Elliott, the Amgen scientist who invented Aranesp, said the misperceptions went both ways. He said some believed, wrongly, that biotechnology companies were developing drugs that could be misused by athletes as a way to increase sales. “There was this uneasiness about that,” said Mr. Elliott, who recently retired but continues to work as a liaison between biotechnology companies and the antidoping agency. “There had to be this realization that it was a win-win for both sides.”

Antidoping officials began to work more closely with drug makers after 2004, when Dr. Rabin heard that athletes were talking about a new version of EPO, called CERA, that was being developed by Roche, and asked the company for help.

“We were shocked when they first contacted us,” recalled Barbara Leishman, who oversees the antidoping program there. She said company scientists had not realized that athletes were following the drug’s development so closely. “This is not the sort of thing we like to hear about our compounds.”

Roche then worked with the antidoping agency to develop a blood test for the new drug, turning over proprietary compounds, called reagents, that would help officials test for their drug. Because of the complex nature of the drug, which mimics the body’s own hormones, and the development of the test, the project took years.

In 2009, blood samples from six athletes taken during the Beijing Olympics tested positive for CERA. Other drug makers took note of the media attention Roche received for the collaboration, Mr. Howman said. “Once there’s a foot in the water, then you can follow and walk right in,” he said.

Roche broadened its agreement with WADA, expanding the project to screen all of its drugs in development. Glaxo followed suit and around the same time, two major industry groups representing biotechnology and pharmaceutical companies adopted policies encouraging their members to cooperate.

Halting the abuse of new prescription drugs is only part of the antidoping picture. Athletes today are believed to use a variety of methods to gain an advantage, from transfusing their own blood to taking tiny quantities of tried-and-true doping agents. And some performance-enhancing drugs gain life in illicit laboratories, as was the case with “the clear,” the designer steroid developed in the Bay Area Laboratory Co-operative that toppled star athletes like Marion Jones.

Still, pharmaceutical companies have an important role to play given how complex new drugs have become, and how athletes are increasingly using substances that closely mimic the body’s natural processes, officials said.

“Developing detection methods to show that the substance taken in a synthetic form is different than your natural substance is more challenging,” said Matthew Fedoruk, the science director for the United States Anti-Doping Agency.

Many pharmaceutical companies already have the tools to create a doping test for their products because the Food and Drug Administration and other regulatory bodies require them to show how the drug passes through the body. During the development process, the companies design reagents to help identify the drug. Amgen and other companies, like the biotechnology company Affymax — which makes a competing anemia drug called Omontys — have given WADA some of these reagents for use in developing tests.

Still, Dr. Rabin and others said some companies needed persuading and did not return his calls. In those cases, he said, he uses peer pressure, reminding them that other companies are also participating.

“We know the progress of their drugs, and we know that at some point collaboration will naturally come,” he said. “We are a bit stubborn.”

Article source: http://www.nytimes.com/2013/02/19/business/drug-makers-increasingly-join-fight-against-doping.html?partner=rss&emc=rss

NBC Wins U.S. Television Rights to Four More Olympics

But Tuesday, Comcast responded with a knockout bid and a promise that it would show every event live, on television or online, a recognition of the immediacy of technology and a drastic reversal of NBC’s policy of taping sports to show them to the largest possible audience in prime time.

ESPN and Fox Sports also promised to carry everything live, but their bids were dwarfed by NBC’s during an auction held at the International Olympic Committee headquarters in Lausanne, Switzerland.

Comcast agreed to pay $4.38 billion for the United States media rights to four Olympics from 2014 to 2020, which eclipsed a $3.4 billion offer from Fox, a division of News Corporation. In an auction that allowed bids for two or four Olympic Games, or both, ESPN, a division of the Walt Disney Company, offered $1.4 billion for the 2014 Winter Games in Sochi, Russia, and the 2016 Summer Games in Rio de Janeiro.

Fox also bid $1.5 billion for the 2014 and the 2016 Olympics.

Brian L. Roberts, the chairman and chief executive of Comcast, said that spreading costs over four Olympics was critical to the bid, which was divided in two: $2 billion for the 2014 and 2016 Games, and $2.38 billion for the next two, whose locations have not been selected. NBC paid $2 billion for last year’s Winter Games in Vancouver (and lost $223 million) and next year’s Summer Games in London.

“We’ve said all along that we’d take a disciplined approach, where we could take a path to profitability,” Roberts said in a conference call. “It was responsible.”

Still, Comcast is paying considerably more than Fox to keep the Olympics in the NBC family than General Electric did for the Vancouver and the London Games. Neal Pilson, a former CBS Sports president, said, “I think Brian felt some pressure to validate the merger, and I think this also establishes that, as everyone felt, the Olympics were more important to NBC than they were to any other network.”

ESPN and Fox bid as if they did not feel they had to win the auction. In a statement, ESPN said: “We made a disciplined bid that would have brought tremendous value to the Olympics and would have been profitable for our company. To go any further would not have made good business sense for us.”

Craig Moffett, an analyst at Sanford C. Bernstein, said Comcast’s winning bid was out of character for a company that has been “relatively cautious.” But, he added: “I think it’s fair to say that at this price, the Olympics are going to be a loss leader for Comcast and they will have a negative effect on short-term earnings. Still, strategically, it’s possible they can pay for themselves.”

By combining NBC’s broadcast and cable networks with Comcast’s sports assets, which include the Versus sports channel, the Golf Channel and 11 regional sports networks, Roberts said he believed his Olympic investment could turn a profit. Mark Lazarus, the chairman of the NBC Sports Group, said that there were more ways to make an Olympic profit “than the old NBC was capable of doing.”

NBC’s Olympic cable coverage has in the past been on the USA, MSNBC, CNBC, Bravo and Oxygen channels. The old NBC was personalized by Dick Ebersol, who ran the network’s sports division for nearly 22 years until resigning last month in a salary dispute that was the climax of a power struggle with Comcast executives. Ebersol had been critical to every Olympic bid since the acquisition of the rights to the 1996 Atlanta Summer Games; he also engineered two pre-emptive bids within a few months in 1995 that brought NBC the rights to every Olympics from 2000 to 2008, at a cost of $3.5 billion to General Electric.

The timing of Ebersol’s departure puzzled Barry Frank, an executive vice president of I.M.G. and a former Olympic negotiator. “Why would you let Dick Ebersol go, and a month later, buy four Olympic Games, when what Dick did best, better than anyone else, is produce the Olympics?” he said Tuesday.

Clearly, Comcast felt it could could replace Ebersol in NBC’s executive suite with Lazarus, and replace Ebersol in the Olympic production control room with some of his disciples. Comcast is also ending Ebersol’s practice of tape-delaying many sports, especially the most popular ones, like figure skating and gymnastics, and more recently, snowboarding, to build a four- or five-hour prime-time program.

Even as NBC introduced online streaming, Ebersol nonetheless delayed showing some events during the 2008 Summer Games in Beijing and even more last year in Vancouver.

Article source: http://feeds.nytimes.com/click.phdo?i=460ed8a8e960b1f4a7421f33f6c9198e