The Paris Olympics, set to commence next week, will be a milestone.
It’ll be the first time in the Olympics’ 128-year history that track and field winners will receive prize money, in addition to having their names etched in the sport’s history.
The move, announced in April, will see the International Olympic Committee (IOC) earmarking $2.4 million of its revenue share towards the $50,000 reward for gold medalists at each of the 48 athletic events.
It’s been a contentious step—some critics have said that monetary resources must be directed to promoting athletics at the grassroots level and that the reward takes away from the spirit of the championship while potentially creating a divide between other sporting events.
Yet, World Athletics (WA) president Sebastian Coe, who has worked on introducing the change since taking on the top role in 2015, thinks it’s a fair move to acknowledge the athletes’ contribution to the iconic tournament.
“They [athletes] are largely responsible for the sums, the revenue streams, the sponsorship that comes into the sport,” Coe told CNBC in an interview. “I’ve always felt that it was really important to recognize that.”
Coe, a four-time Olympian in track and field himself, explained that one way to do that was to ensure the financial security of athletes, who often devote their entire careers to the sport, is taken care of.
“It’s just inconsistent for me, as president of World Athletics, to talk about new fresh income streams and sponsors, like Sony, that we brought to the table just in the last few months, and not also recognize that the reason for that financial vibrancy is the performance of the athletes,” the WA president said.
Coe explained that the reward could help ease the financial burden on families that support athletes in their foundational years to reach an international-scale event like the Olympics.
“I think they deserve some skin in the game. That is, in simple terms, why we’ve done it.”
The WA said it’s working on introducing prize money for silver and bronze medalists starting with the next iteration of the Olympics, which will be held in Los Angeles in 2028.
WA didn’t immediately return Coins2Day’s request for comment.
How the Olympic finances work
Olympic athletes don’t get paid directly.
The IOC gives 90% of its income, which totaled $7.6 billion from 2017 to 2021, to National Olympic Committees (NOCs) and international sports federations (IFs).
“This means every day the equivalent of $4.2 million goes to help athletes and sports organizations at all levels around the world. It is up to each IF and NOC to determine how to best serve their athletes and the global development of their sport,” the IOC told CNN in a statement.
These bodies have rewarded athletes in the past, the IOC said in a report last month, although there isn’t a clear framework around it and can differ by country.
The world’s A-list athletes make money through lucrative sponsorships—but they’re the outliers.
Monetary rewards aside, this year’s Olympic winners will receive an original piece of iron from the Eiffel Tower as part of their medals to mark their success.
