海角大神

Watching the made-for-TV Olympics the other night, I could not help but wonder: Why does the federal government subsidize the United States Olympic Committee by granting it ? The question is especially interesting听because The Washington Post听听the USOC may soon ask for direct government support.听

The law provides a specific tax exemption for organizations that 鈥渇oster national or international amateur sports competition,鈥� according to the IRS.听 But much of the competition the USOC fosters is not amateur at all. True, amateurs still participate in some听minor sports. But marquee U.S. team sports like hockey and basketball, and the glamour听individual sports such as skiing and ice dancing (is this really a sport?) are dominated by professionals. Ski racer Lindsey Vonn, for instance, made an estimated $3 million last year from race winnings and endorsements. We've come a long way from the days when the Olympics stripped a track-and-field gold medal from听Jim Thorpe because he made a few bucks playing semi-pro baseball.听

Then there is the matter of the way the USOC itself makes and spends money. To learn more, I pulled the committee鈥檚 IRS Form 990 for 听and听 .

On the income side, the USOC is听a massive marketing operation that makes money by charging听 for sponsorship and broadcast rights. In 2007, a year in which there were no games, USOC had revenue听of听 $147 million. More than half鈥攐ver $78 million鈥攃ame from corporate royalties. The story was roughly the same in 2008, although, because听 summer games were played that year, the numbers were far bigger (including $123 million in broadcast rights).听USOC is听in a titanic battle with the International Olympic Committee over how to divvy up that听TV听money.听In 2003, NBC paid the IOC a staggering $2 billion for the rights to broadcast the games through 2012.

In contrast to its carefully crafted public image, the olympic committee听gets relatively little from individual charitable donations. According to The Washington Post, the group听expected to raise only about $10 million in such contributions in 2009.

The way USOC spends听its money is even more troubling. For context, the American Institute of Philanthropy recommends that charities spend at least at least 60 percent, and preferably 75 percent, of income on programs. Yet听in 2007, the USOC spent about two-thirds of its revenue听on administrative expenses, including almost $35 million on salaries,听benefits, and other compensation. In 2008, at least 20听of its top executives earned听$200,000 or more.

In听 '07, the committee distributed about $57 million--or less than 40 percent of its income--听to its member athletic organizations, various foundations, and individual athletes. For instance, the speedskating association got $2.8 million, Hockey USA got $1.3 million, the curling association got $635,000, and the badminton association got $237,000 (I guess those birdies are cheap).听听

Much of the money pays for coaches and training costs. What do the athletes听get directly? In 2007, the USOC distributed a total of about $14 million in 鈥済rants鈥� and spent another another $3 million on health insurance for elite athletes. And, no doubt, some who play less commerical听sports could use the help.听听

But let鈥檚 not kid ourselves,听it has been a long time since the Olympic movement was about the love of sport.听Today, the Olympics is about听big bucks entertainment provided mostly by highly-paid athletes. It would be an outrage if, in an era of $1 trillion-plus deficits, Congress听provided direct funding for the USOC.听It is bad enough听the Olympic committee enjoys听tax-exempt status. I can鈥檛 image why Washington听subsidizes听a private organization to create commercial听 entertainment. The producers of American Idol--the winter games' prime-time competition-- seem to do a听fine job of running made-for-TV competitions without government subsidies. Why can鈥檛 the Olympic movement?听听听听听

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