By Michael Pavitt |
The United States Olympic and Paralympic Committee (USOPC) is set to make budget cuts of up to 20 percent through to the Paris 2024 Olympic Games due to coronavirus, while the organization’s chief marketing and communications officer Luella Chavez D’Angelo has stepped down from her role.
USOPC chief executive Sarah Hirshland told the Wall Street Journal that she had taken a 20 percent pay cut until the end of 2020, due to the coronavirus pandemic.
Other USOPC executives have taken 10 percent pay cuts as the organization aims to manage the impact of the crisis.
Hirshland said no layoffs or furloughs were expected currently, but admitted it could be possible in the future.
“There is no scenario in which we will not see significant revenue loss over the next five years,” she told the Wall Street Journal.
“The question for us is both one of, ‘how much over that time frame will we lose?’.
“The second question is ‘what’s the timing of when we’ll see payment to ensure we can manage cash flow effectively?’
“And that’s the planning we’re doing now.”
USOPC’s four-year budget is around $1 billion, meaning a 20 percent cut overall would see the budget cut by $200 million.
Hirshland has said the organization will not use part of its $200 million reserves, which the USOPC will preserve in the event of a cancelled Olympic Games.
Payments to national governing bodies and athletes will also remain intact.
The USOPC’s chief marketing and communications officer Chavez D’Angelo has also left the organization after less than seven months, a spokesperson told Sport Business Journal.
Chavez D’Angelo joined the USOPC in October from Centura Health, where she served as vice-president of marketing and communications.
She took over many of the responsibilities formerly carried out by Patrick Sandusky, who was chief external affairs officer at the USOPC.
This included internal and external communications, public affairs, media relations, Government relations, brand management, digital and social strategy and content, and stakeholder communications.
Republished with permission from insidethegames.biz.