Teamwork saved the Olympic TV coverage for the Philippines. Without the combined resources of government and the private sector, the Philippines would’ve been the only country in the world to be blacked out of the Olympic coverage.
Fortunately, President Arroyo was determined to bail the country out of an embarrassing situation in the Olympic community. She ordered Budget Secretary Emilia Boncodin to find a way to assuage the International Olympic Committee (IOC).
The problem stemmed from the government TV station’s failure to pay its debt to the IOC for the Sydney Olympic rights. The rights fee was $1.6 Million and the National Broadcasting Network (NBN) paid only $400,000, leaving a balance of $1.2 Million unpaid for four years.
IOC marketing director Michael Payne personally came to Manila a few months ago to negotiate an arrangement where the Philippines would be reinstated as a bidder for the Athens rights. But Payne said before negotiating for Athens, the Sydney arrears had to be settled.
Payne entertained bids from two other Philippine groups for Athens but made it clear from the start, settling the Sydney debt was the priority. That encouraged NBN to actively seek the rights for Athens and with backing from the Asia Pacific Broadcasting Union (APBU), began the spadework to clinch the deal.
Aside from the $1.2 Million debt, NBN also had to raise $600,000 for the Athens rights and $227,000 for the technical tie-up to receive satellite feeds from the APBU. The total bill was nothing to scoff at–the equivalent of about P115 Million.
NBN chair Mia Concio got the ball rolling by inviting the marketing group Jemah to join the crusade. Marc Roces, whose father Marquitos is a prominent businessman and sportsman (he joined the Philippine delegation at the 1936 Berlin Olympics), knew it wouldn’t be an easy sell but hopped aboard anyway to save the Olympic coverage. Both Concio and Roces were committed to a common cause–the national interest.
Concio inherited the NBN arrears from the previous dispensation.
IOC representative to the Philippines Frank Elizalde said it was Roces who reopened the door for the salvaging operation. Roces immediately coughed up $300,000 as his share to pay part of the $1.2 Million debt. The delivery of fresh cash prompted the IOC to rethink the Philippine position.
The IOC, incidentally, enticed the Philippines to make current its Olympic account by reducing the Athens rights fee from $1.8 Million to $600,000. The hefty drop proved the IOC’s sincerity in bending backwards for cash-trapped member countries to assure the universality of the Games coverage.
Concio, meanwhile, got support from Rep. Monico Puentevella, chair of the House Committee on Youth and Sports Development, to reach out to Secretary Boncodin.
Marching on President Arroyo’s orders, Secretary Boncodin requested the heads of 11 government financial institutions to pool their resources for another $300,000 to complete the $600,000 installment as the first step to settle the $1.2 Million debt by Aug. 8. Land Bank was designated as the conduit for the $300,000 remittance. Rep. Puentevella closely monitored the progress of the discussion. Secretary Boncodin fondly acknowledged Rep. Puentevella’s persistence by calling him "makulit." Persistence eventually saved the day for the Olympic coverage.
Upon receiving the $600,000 installment, the IOC agreed to be paid the balance of $600,000 within 24 months on condition the amount is guaranteed by a government bank. Secretary Boncodin again came to the rescue by complying with the IOC requirement.
Regarding the $600,000 rights fee for Athens, NBN general manager Joey Isabelo said the government station has up to December to pay it. Isabelo added he’s confident of settling the account with the income to be generated by the coverage through advertising. He estimated a gross take of P40 to 70 Million from the telecast. The rights fee is guaranteed by the APBU.
Secretary Boncodin arranged for the payment of $227,000 to the APBU for the technical tie-up, too. The amount was taken from the government’s equity in NBN.
Elizalde marveled at the way the P115 Million problem was solved. "It was a totally collective effort," he exclaimed.
Rep. Puentevella said it took no less than "a small miracle" to save the Olympic coverage. Press Secretary Milton Alingod also played a key role in the operation, pulling in Secretary Boncodin and arranging the meeting with President Arroyo to brief her on the gravity of the situation.
The Philippines and Indonesia were the only countries in danger of being blacked out of the Athens Olympic coverage. But they were both jettisoned out of a black hole. Indonesia worked out a last-minute arrangement with a cable network to salvage the coverage.
The concerted effort led by Concio to bring the Athens Olympics to the Philippines via satellite on TV is an inspiring story of how Filipinos can surmount daunting odds by working together and leaving politics behind for a common cause.