Olympic billions: how should Russia’s preparations for the Rio

On Tuesday, June 21, in Lausanne at the special meeting of the international Olympic Committee (IOC) will decide whether to go to the Olympic games in Rio after high-profile doping scandals Russian athletes. Theoretically, the IOC can deny to go to the Olympics and all Russian athletes. RBC tried to calculate how much public and how much private money into the Russian Olympic funding.

The costs of OCD

The main departments are in charge of training Olympic athletes, the Ministry of sports, through which pass the Federal budget, and the Russian Olympic Committee (ROC) is a non — profit public organization, which is responsible for forming and training teams for the Olympic games. Through OCD are funds to prepare for the Games from non-budget sources.

The head of the Russian Olympic Committee Alexander Zhukov on Thursday, June 16, told RBC that the costs of OCD to prepare athletes for the Olympic games in Rio de Janeiro is already made up “about 1 billion rubles”. The main costs for the preparation of athletes for the Olympic games passing through the ROC, come from extra-budgetary sources, said the Director of the office for participation in Olympic sporting events of the ROC Igor Kazikov. The total budget of the Russian Olympic Committee has never been revealed. Representatives of the ROC emphasized that it is formed mainly from sponsorship and implementation of marketing programs.

OCD pays the final pre-Olympic gathering of members of the Russian national team, many of them abroad. “One of our teams will travel to prepare in Portugal, because there is a time zone climatic conditions are suitable. Someone is in Germany, but most, of course, on our bases, say, Sochi or Kislovodsk. In General, everyone chooses for themselves” — said at the St. Petersburg economic forum in 2016 the head of the ROC. Another item of expenditure — purchase of modern equipment. “Many of the Federation and the team approached us to buy the most modern equipment. For example, boats for rowers. Horses there for pyatibortsev and jumping. Some of the equipment for rhythmic gymnastics, wrestlers and so on,” — said Zhukov.

OCD pays for a flight to Rio de Janeiro and accommodation of the Russian delegation and athletes living outside the Olympic village, additional transport to Games, kit. The total number of the official Russian delegation in Rio de Janeiro will be more than 800 people, including 430-440 athletes. The final list of delegates will be approved in mid-July. Specific costs in OCD have not been disclosed. “We pay for the flights of athletes, accommodation of those who will live outside the Olympic village”, — told RBC Igor Kazikov, noting that “expenditures for these items swim.” Four years ago, for these purposes, the Olympic Committee spent 361 million rubles, reported the Agency “RIA Novosti” four years ago, citing Alexander Zhukov. “Now the crisis, have become more modest, try to save some money,” says Kazikov.

Special expenditure OKR — payments for highly qualified foreign coaches and specialists involved in the training of Russian athletes. “Federation apply to the Olympic Committee, justifying the need to attract foreign professionals who need to improve the results of Russian athletes. These requests can be accommodated, but the Committee monitor whether the invitation of foreigners gave the result”, — told RBC source in the Olympic Committee.

According to the calculations of the site Sports.ru a year ago, with the national teams of Russia in Olympic sports were 113 foreign experts. Most of them collaborated with teams in winter sports, 36 specialists will be involved in the preparation of athletes for the summer Olympic games in Rio. The largest number of foreign experts involved in the preparation of the national team of Russia in rhythmic gymnastics where Russia is traditionally considered to be a major contender for medals. In the staff of head coach Irina Viner includes six massage therapists from Thailand to replenish athletes after exertion, and the Bulgarian choreographer Lyudmila Dimitrova. Russian judo to the Olympics in Rio will prepare Italian coach Ezio Gamba, who heads the national team since 2008.

The President of the Russian judo Federation, the owner of developer company Coalco billionaire Vasily Anisimov told RBC that it is extremely satisfied with the cooperation with the Italian specialist, “And as a wonderful man, and the result, and the salary is no comparison with the contract Fabio Capello”. Salary Ezio Gamba Anisimov did not disclose. In January, the President of Russia Vladimir Putin personally handed over to the Italian specialist Russian passport, so at the Olympic games in Rio Gamba will formally cease to be a foreign specialist.

In addition, foreigners are in the coaching and medical staffs of the Olympic team of Russia in volleyball, fencing, kayak slalom, mountain bike, beach volleyball, rowing, road Cycling, tennis. Almost all these sports, the Russians can count on medals.

The latest doping scandal in the Russian sport

Suspension of athletes

At the end of 2014 on the German TV channel ARD released a film about the mass use of doping Russian athletes. In 2015, the World anti-doping Agency (WADA) has set up a special Commission which was engaged in investigation of violations of anti-doping rules in Russian athletics. In November, the Commission presented its first report, which mentioned the existence in Russia of the system that allows athletes to systematically used banned drugs and to evade responsibility. According to investigators, the all-Russian athletics Federation (vfla), doctors and trainers of athletes, the Russian anti-doping services act together. In the result, WADA has suspended the accreditation of the Moscow anti-doping laboratory, is a member of the Russian anti-doping Agency RUSADA and the international athletics Federation (IAAF) has suspended Russian athletes from participation in all competitions. 15 June, the Commission of athletes at the Russian Olympic Committee (ROC) has appealed to the President of the International Olympic Committee (IOC) Thomas Bach requesting permission to participate in the 2016 Olympic games the Russian athletes who have been convicted of doping.

Meldonium

From 1 January 2016 in the list of drugs that are prohibited to use athletes, added Meldonium. This drug supports energy metabolism of the heart and is used by athletes, in particular, to better recover from exercise. March 7 the best Russian tennis player Maria Sharapova announced at a press conference that in her doping sample discovered Meldonium. The athlete has taken responsibility, noting that he did not notice the letter from WADA stating on making Meldonium in the list of banned drugs. In June, the tennis player received a two-year disqualification, which is going to appeal. In addition to Sharapova on the use of Meldonium caught a number of Russian athletes. In April, WADA said that in urine samples taken before March 1, 2016, the content of Meldonium from 1 to 15 mg per 1 ml of blood is acceptable. The same applies to cases where the sample taken after March 1, and the content of the drug does not exceed 1 mg per 1 ml.

The dope from the past

On the eve of the Olympic games in Rio de Janeiro, the IOC decided to retest with modern methods frozen doping samples of the last two summer Games (2008 in Beijing and 2012 in London). According to the results of repeated analysis of samples “A” 54 participants of these contests was accused of doping, 24 of them — the Russians. 7 June edition of “Sport-Express” reported that the anti-doping laboratory in Lausanne was opened ten samples “B1” of Russian athletes, eight of them were positive. The athlete may need to open the sample “B2”. If it is positive, then the presence in the body doping is considered to be finally confirmed.

Accusations of Champions Sochi 2014

In may, the American edition of the New York Times published an article, whose main character was a former head of the Moscow anti-doping laboratory, Grigory Rodchenkov. After the lab was deprived of accreditation, he went to the United States. Rodchenkov said about the massive use of doping Russian athletes participating in the winter Olympics in Sochi. According to Rodchenkova, during the 2014 Games with the help of the FSB, he and his colleagues were regularly engaged in the substitution of doping tests Russian athletes who had used illegal drugs. In particular, the former head of the Moscow lab was accused of using banned drugs with multiple Champions of the Olympics — bobsledders Alexander Zubkov and Alexei Voyevoda, Alexander Tretyakov, and skeleton of the skier Alexander passenger cars.

Sponsors Olympians

Who forms the budget of the ROC, allowing him to hire expensive coaches and athletes to carry on foreign fees?

Major donor OCD — “Gazprom”. In October 2014 Gazprom signed a contract with the Olympic Committee for four years, becoming its General sponsor. The amount of the agreement amounted to $130 million — the money will be used to provide teams of qualified training personnel, including foreigners, and to Finance the training of athletes to the Games at the request of the federations. According to marketing Director OCD Dmitry Manevich, revenues from “Gazprom” exceeds the half of profitable part of budget development.

Among the other General partners and sponsors of the ROC on the official website of the Committee named company Aeroflot, Bosco, MegaFon, Rosneft, Russian Railways, Rostelecom, Sberbank, the pension Fund “Future” and “Norilsk Nickel”. Most of the partners moved to the current Olympic cycle from the past — they signed contracts with the Sochi 2014 organizing Committee even before the Sochi Olympics. The total income of the organising Committee from sponsorship revenue before the Olympics in Sochi were estimated at $1.2 billion After the Olympic games in Sochi contracts partners moved the ROC. These contracts end in 2016, told RBC Manevich. “All of them will offer to extend cooperation,” he adds.

Among the new General partner of the ROC signed under the funding of the Olympic team of Russia in Rio de Janeiro and Pyeongchang, NPF “the Future” (member of O1 group Boris mints) and Norilsk Nickel, which has signed a partnership agreement with the ROC and he will allocate 1.25 billion RUB over five years. The latter has signed a partnership agreement with the ROC in may 2016.

Bosco Mikhail Kusnirovich, which traditionally sew form for Russian Olympians, has said it was willing to consider the possibility of signing a new contract with the ROC after the Games in Rio de Janeiro. Kusnirovich, claimed that during the cooperation with OCD its sponsorship contribution was at least $100 million According to Dmitry Manevich, in the near future will be signed another major partnership agreement. With whom, Manevich did not disclose. But he says that compared to Sochi cost of sponsorship packages has significantly decreased. For example, the status of the official supplier of certain product groups in Sochi started from $7-8 million, now the same package costs 30 million rubles per year.

Marketing Director at ROC admits that the search for new partners of the Olympic Committee has had to step up including because a significant part of the budget of the ROC hovered in the accounts of the bankrupt in December 2015 only. Earlier, a source of RBC in the OCD said that in the accounts of Vneshprombank has frozen $30 million received from the Olympic Committee of “Gazprom” (head of press-service OKR Konstantin Vybornov this amount denied). According to three sources in the ROC, the money was never received back: “not particularly I hope.” According to him, the disappearance of large sums of sponsorship money had forced the ROC to adjust spending plans.

The house of fan

“The enclave of Russia in Rio”

Another consumable part of the organization of the trip of the Russian delegation to the Olympics in Rio de Janeiro will be the creation of Home fans. “This is a beautiful three-storey building in a respectable part of the city on the border of Copacabana and Ipanema in the building of the yacht club”, — told RBC Director of marketing for OCD Dmitry Manevich. According to him, on the ground floor is opened space for the fans from Russia. “It will be an enclave of Russia in Rio — describes Manevich. — There will be put on presentation of a Russian passport all. Fans will be able to rest there, to eat, to use good Internet to learn the results of the competition, it is possible to see the Russian athletes. Will open the exhibition about the Olympic movement in Russia. However, for foreign fans will be held the days of open doors”.

The means of the partners

On the upper floors of the building will house areas for partners and ROC officials. There will be in the Russian press center for journalists and a room for press conferences. Here will come the athletes who have completed the performances at the games.

The costs of renting a building and its equipment by the beginning of the games took on a non-profit organization “Directorate of assistance programs OCD”. According to SPARK, it is a subsidiary of Olympic Committee. Dmitry Manevich says that the funds for the equipment of the House fan in Rio de Janeiro will provide marketing partners of OCD, but specific amounts are not mentioned. According to him, these costs are not included in the scope of sponsorship and partnership contracts OCD.

Budget money

The total budget of the Ministry of sports under “sports” includes the consumption of 50 billion to 60 billion roubles a year. More than half (to 30 billion rubles per year) should be spent to prepare Russia for world Cup 2018. The second largest expense is the subsidies to subordinate organizations — regional sports ministries and the Federal training centres (there is also included the financing of local schools of the Olympic reserve).

Budget expenditures directly related to preparing for the Olympics, are divided into three parts.

The first is the funding of competitions and camps. It is based on the Single calendar plan of sport events (ETUC), which is annually prepared under the Ministry of the Federal state unitary enterprise “Centre of athletic training teams of Russia” (TSSP). ETUC approved by the Ministry of sports for 2016 — a huge list of Russian and international competitions on 522 pages. It includes 132 sport — from aeromodelling to checkers and such unusual disciplines as cheerleading and Darts. Those Olympic sports that will be represented at the Games in Rio, the PAC only 35. Separately the costs of Olympic and non-Olympic sports are not separated.

To Finance the implementation of the ETUC in the budget of the Ministry of sport 2014-2016 allocated 1.06 billion RUB At the same time, however, the source of RBC in the Olympic Committee says that it is only a small part of the funds that are spent on the organization of the competition and charges: the rest is to attract extra-budgetary funds. “After the Games in Vancouver 2010 we have come to understand that there are many questions on the financing needs of the teams within the Olympic team, at the expense of budgetary funds, — says the interlocutor of RBC. — For example, payment for training abroad, hiring highly-qualified foreign coach to improve the results, purchase some unique equipment for training. So now we also provide financing at the request of the federations of extrabudgetary funds”.

Questions about the Olympic spending of budget funds arose after the Games in Vancouver: then the bad performance of team Russia (a total of 15 medals and 11th place in the team competition) had a negative resonance in the country’s leadership. The accounting chamber conducted an audit of efficiency of use of Federal budget funds on preparations for the Olympics. Prepared the audit report in particular, it is noted that the system of implementation of ETUC, in which trained athletes, “inefficient, imperfect, carries with it corruption and, in General, requires fundamental changes,” So, during all Olympic cycle direct financing of works (services) related to the preparation of athletes, engaged in commercial organizations, in fact, performing the functions of the settlement-cash centre and numbering in staff some persons. However, each year at the disposal of these organizations reported 2-3,5 billion rubles”.

Everything, by estimates of audit chamber, the preparation of the Games in Vancouver at the expense of means of budgets of different levels and extra-budgetary sources were spent about 6.2 billion rubles, including 5.8 billion rubles for Olympic sports and 378 million roubles — at the Paralympic. Thus, the price of one Olympic medal was not less than RUB 388 million, the report said. After the Olympic games in Vancouver as head of the ROC left its head Leonid Tyagachev, and in its place came the Vice-Premier Alexander Zhukov.

The second part of the budget Olympic expenses presidential scholarship for current and former members of the Olympic teams. Annually compiled a list of 3 thousand scholars (including 700 athletes and coaches of Paralympic athletes) who receive monthly 32 thousand rbl., follows from the text of the relevant presidential decree. The payments of these scholarships (annually 1,152 bn) in the budget of the MST.

The third part — award for the future winners of the Olympiad. So, in the case of the Games in Rio for the gold medal the athlete will receive 4 million rubles, silver — 2.5 million rubles, bronze — 1.7 million rubles. the same premiums are provided for Paralympic athletes. Before the end of the competition the exact amount of expenditure is impossible to calculate. At the previous Olympics in London in 2012, the Russian athletes have won 191 of the award (60 gold) and got a little over 500 million RUB Additional award to allocate the regional authorities. For example, in 2012, Moscow mayor Sergei Sobyanin has also doubled the prize to the winners of the London Olympics from Moscow at the expense of the government of Moscow.

The oligarchs added

Besides the state prizes the winners and prize-winners of Olympic games receive awards from the Russian Olympians Foundation, formed the largest businessmen of Russia. The amount of remuneration for the results of the contest was not yet called, but the Fund in March, has already allocated 1 billion rubles for the preparations for the Olympics in Rio after the sponsorship part of the money allocated for OCD, stuck in Vneshprombank. Chairman of the Board of Trustees supports the Prime Minister Dmitry Medvedev. Among the other Trustees are big businessmen like Roman Abramovich, Oleg Deripaska, Vladimir Yevtushenkov, Vladimir Lisin, Mikhail Prokhorov, Alisher Usmanov. The Fund was established in 2005 and awards grants on the development of sports programs and individual athletes and coaches. The Fund traditionally awards are given to winners and prize-winners of the Olympic games. As a rule, expensive cars. For example, the winners of the Olympics in Sochi from the Russian Olympians Foundation got the Mercedes. Olympic Champions got the SUV Mercedes GL-class, the value of which is 5.3 mln. Holders of the silver award — Mercedes class ML (3,06 mln.), and bronze medalists received a Mercedes LK-class value of 2 million 150 thousand rubles.