WASHINGTON — Despite reports to the contrary, the U.S. Olympic Committee says it faces no dire financial trouble supposedly fueled by the Salt Lake City bribery scandal.
In fact, it says it will end its current four-year budget cycle this month with about a $25 million cash surplus. And at the end of the next cycle in 2004, it expects to break even on a cash basis, with no cash left in the bank, but no debt.
USOC officials released those figures Thursday after the Orange County Register of California reported this week that internal USOC documents projected a deficit of up to $107 million by 2004. The California newspaper blamed that on skyrocketing administrative costs and decreased fund-raising caused by the Salt Lake City scandal.
USOC Chairman Bill Hybl told a press briefing Thursday that such figures are wildly inaccurate. Acting Chief Executive Officer Scott Blackmun described the USOC's finances as "sound."
But while the USOC is ending its current four-year budget cycle with $25 million in the bank, Chief Financial Officer Early Reese said it still technically has a $33 million deficit.
Most of that comes from scheduled depreciation of equipment, which he said did not require any cash outlay now to fund eventual replacement.
And for the four-year period from 2001 through 2004, the USOC is projecting revenue of $495 million and expenses of $516 million — or a deficit of $21 million. Reese said most of that deficit is also from equipment depreciation that requires no cash outlay.
"Essentially at the end of the 2004 quad, we'll be sitting there with no debt and no cash in the bank," Blackmun said.
Blackmun also said, "I don't think Salt Lake City has affected our revenue targets for the 2004 quadrennium."
He said that of the $495 million in projected revenue for 2001-04, all but $50 million or so is already committed by contracts. He added that 10 of the top 11 available international corporate sponsorships have been renewed — all except for United Parcel Service.
"The Salt Lake City scandal has not affected our marketing efforts," Blackmun said.
The Orange County Register had reported that amid fallout from the Salt Lake City scandal, USOC fund-raising revenue fell from $1.89 million in 1998 to $1.5 million in 1997 to $356,230 this year as of Aug. 31.
It also said USOC administrative costs were skyrocketing.
It noted the USOC this year hired Norm Blake — a corporate turnaround specialist it hoped could help with reform — as its chief executive officer at annual salary of $500,000 plus use of two cars.
Soon after Blake was hired, he spent $27,000 on new leather furniture for his office. It said he brought in other executives with salaries of more than $300,000 a year.
Blake resigned under pressure after only nine months on the job — and charged that the USOC is unwilling to reform, while USOC officials said member sports groups disliked his harsh management style.
Hybl is promoting Blackmun to be Blake's permanent replacement.
E-MAIL: lee@desnews.com