Layoffs Part of USOC Budget Cuts

The USOC Board of Directors, led by Larry Probst, will cut 10-15 percent of its workforce in an effort to trim costs. (USOC)As many as 50 jobs are on the line at the U.S. Olympic Committee after budget cuts in response to economic conditions.

The USOC Board of Directors voted Tuesday to trim its 2009 operating expenses by $7.1 million, a decrease of about 5 percent from the $142.6 million budget approved in December.

Cuts will include layoffs of 10-15 percent of the USOC's 425 full-time employees; reductions in administrative costs such as meetings, staff training and travel; and reductions in programming that is not specific to athlete and NGB performance.

USOC spokesman Darryl Seibel tells Around the Rings that the USOC has not delineated specific items or job positions to be eliminated.

"We will take the next four weeks to identify specifically what will be reduced in each of those three areas," he says.

The USOC had previously sought to reduce its workforce through attrition.

There will be no reductions in funding committed for 2009 to NGBs and athletes in summer or winter sports, support for the Chicago 2016 bid or support provided to corporate partners through the USOC marketing division.

The 10-member board, which is led by Larry Probst, met in Washington, D.C.

Seibel says that at its December meeting, the board gave itself the flexibility to revise the 2009 budget if economic conditions warranted. He added that these reductions are necessary "to make certain the organization is properly positioned to weather the economic downturn. No one knows how long this will last or how deep this will go. We have a responsibility to make sure we're managing our resources in a way that allows us to fulfill our mission and preserveThe USOC says that they will not be making cuts to 2009 funding for athletes. (Getty Images)the fiscal health of the organization."

He says the new budget figure of $135.5 million is in line with the USOC's "comfort level with attaining revenue that supports an expense number at that level."

Seibel says the board also discussed the revenue-sharing deal that is still being negotiated between the IOC and USOC, but he declined to give specifics. He also gave no details about the proposed Olympic television network, other than "good progress is being made."

Mike Plant, the board member who was recently appointed Chef de Mission for the 2010 U.S. Olympic team, delivered an update on Vancouver. "It was very optimistic," Seibel says.

First Presentation by New Marketing Chief

Lisa Baird, who became the USOC's chief marketing officer on Jan. 20, made her first presentation to the board.

"There was significant interest in getting her point of view," Seibel says.

The USOC has agreements in place with 17 corporate sponsors for at least the next four years.

Open categories in which the USOC has previously had sponsors are home improvement, automotive, and cereal. The USOC is still seeking to close deals with AT&T and Bank of America.

The organization is also working to fill new categories, although Seibel would not divulge what they are. He says sponsor announcements will come in 60-90 days.

Seibel says the economic downturn may put at risk revenue from foundation grants and private donors.

Written by Karen Rosen

For general comments or questions, click here