The United States Olympic Committee and the International Olympic Committee have ended a long and contentious financial dispute over revenue sharing. New agreement will govern the financial relationship between the two parties for two decades.
The new deal between the USOC and IOC, that will take effect in 2020, was reached six months before negotiations were even scheduled to begin.
Shortly after the agreement was signed Thursday in Quebec City (Canada), IOC President Jacques Rogge expressed his delight.
"This is a very happy moment for the International Olympic Committee but I believe also for the USOC, as this agreement will definitely strengthen both sides, and the IOC will be in a position to better function," said Rogge. "The USOC will enhance its possibilities in having a leading role in sports in the world."
The deal restructures how top sponsorships and U.S. television revenue from the Olympics are shared, and it provides for USOC contributions to the IOC's administrative costs associated with the Olympic Games. Under the current open-ended contract dating back to 1996, the USOC has received 20 percent of global sponsorship revenue and a 12.75 percent share of the money paid for U.S. broadcast rights of the Olympics.
The IOC has maintained that was excessive and should be renegotiated. It is believed the bitter feelings over the old contract played a part in undermining recent bids by the United States to host another Olympics.
At Thursday's brief news conference after the new agreement was signed, neither IOC nor USOC officials would reveal specific financial terms or percentages.
USOC Chairman Larry Probst said the stage has been set for a much more collaborative relationship.
"From our standpoint we went into these negotiations with the objective of addressing the fundamental issues that were important to the IOC, and at the same time ensuring the financial well-being of the USOC on a long-term basis, and I think we were able to accomplish both parts of that equation," said Probst.
Probst said he hopes the new deal with the IOC has removed any roadblock, and developing strategy for future U.S. Olympic bids will be discussed at a USOC board meeting next month.
The U.S. last hosted the Winter Games in Salt Lake City, Utah in 2002, and the Summer Games in Atlanta, Georgia in 1996.