LONDON/NEW YORK, Nov 3 (Reuters) - The US Olympic and Paralympic Committee(USOPC) is in the advanced stages of setting up a commercial entity to sell a stake in return for capital, two people with knowledge of the matter told Reuters.
Any deal would mark a significant shift for the USOPC, a non-profit organization that, unlike many national Olympic committees, relies heavily on sponsorships, licensing and other commercial revenue streams rather than government funding.
The plan has been in the works for months, according to minutes of USOPC board meetings which showed the proposed commercial entity would be named United States Olympic and Paralympic Ventures (USOPV).
"(USOPC CEO Sarah) Hirshland reported encouraging feedback from preliminary discussions with potential investment and strategic partners," the minutes said.
"Prospective partners generally validated the vision for the USOPV and strategic rationale underlying the initiative."
The USOPC is being advised by investment bank Raine Group, according to Sky News, which said the venture could be valued in the billions of dollars.
Raine did not immediately respond to a request for comment.
The potential deal comes as the United States prepares to host the 2028 Summer Olympics in Los Angeles and seeks to capitalize on growing investor interest in sports assets and intellectual property.
USOPC CEO Sarah Hirshland told Reuters that her organization was preparing to transition away from its commercial partnership with LA28, known as United States Olympic and Paralympic Properties, which comes to an end after the Games.
USOPV COMMERCIAL MODEL IN PROGRESS
Hirshland said what the commercial model for the USOPV will be - and the details behind it - were "very much in progress" and declined to offer specific details on the commercial entity.
"This is a natural transition point and is one we've been talking about and preparing for for more than a couple of years," Hirshland said.
Following Los Angeles, the US will immediately turn attention to the 2034 Winter Games in Salt Lake City.
"We're obviously very focused on how do we create a sort of sustainable and consistent commercial strength that will both incorporate potential host cities, in this case obviously Utah 34, but also a structure that would allow for future host organizations," Hirshland said.
The move underscores how sports leagues and governing bodies are increasingly turning to private capital in a bid to unlock the value of their commercial rights and secure access to resources to fund future growth.
The USOPC said in a statement it was evaluating a range of commercial options to generate additional resources for athletes and national governing bodies while preserving its mission, governance and leadership.
It added that it had consulted athlete and federation representatives throughout the process.
The USOPC move comes afterFIFA scrapped plans to create a $20 billion subsidiary to run the soccer World Cup and its other events, offering stakes of up to 20% to external investors.
The proposal prompted a revolt across global soccer and the backlash threatened FIFA PresidentGianni Infantino's future with the sport's world governing body.
(Reporting by Amy-Jo Crowley in London and Amy Tennery in New York, additional reporting and writing by Elvira Pollina in Milan, editing by Ed Osmond)
