The United States Olympic and Paralympic Committee (USOPC) is facing financial cuts of up to 20% as a result of the coronavirus pandemic and its ripple effects, per The Associated Press.
With the greatest source of USOPC funds being reaped during the year of a Summer Olympics via advertising revenue and other sources, the delay of the Games to July 2021 means this monetary windfall’s delay is affecting business operations now.
CEO Sarah Hirshland reportedly sent a letter to the U.S. Olympic leader community yesterday, which specified that ‘cuts of 10 to 20% are necessary to balance both the current delay in revenue and anticipated decline’ expected in the next few years.
Hirshland stated via the letter, “We have to fully understand what that possibility would mean for our organization, so we certainly have considered it and evaluated it.”
Weighing the possibility of an outright cancellation of Tokyo 2020 should the pandemic not subside by next year, Hirshland said, “The impact of cancellation would be devastating to our athletes, first and foremost, but also to our financial health and stability. We would survive such a scenario, but the impact would be severe.
“Though job cuts or pay reductions appear likely among the 500-person staff, many based at the headquarters in Colorado Springs, we will look at broader program, services and personnel-related costs before we consider cuts or furloughs.” (AP)
Hirshland said decisions will be made by the end of May, although she has already taken a 20% pay cut, while the rest of the executive team has taken 10% pay cuts through at least the end of 2020.
This follows suit with several Australian Olympic Committee members who also selectively took pay cuts in light of the coronavirus impact. Per our latest Beyond the Lane Lines edition, Chief Executive Matt Carroll, along with 7 additional members of the senior management team, has taken a 20% salary cut. AOC President John Coates had already reduced his consultancy fees about 2 weeks ago.