Sports Business : FIBA knocks on IOC doors for financial support

As expected, the International Basketball Federation (FIBA) has confirmed it will be seeking financial support offered by the International Olympic Committee (IOC) to help governing bodies navigate the financial crisis sparked by the coronavirus pandemic. Though the organization has repeatedly insisted it is financially stable, according to a report by insidethegames has revealed that the governing body for the sport of basketball has reached out to IOC for ‘aid package’.

A spokesperson for FIBA told insidethegames the organisation is in talks with the IOC about how it can access part of the $150 million “aid package” set aside by the IOC for the international sports federations during these Covid19 times. FIBA is yet to ascertain the nature of support they are looking from the IOC.

It is worth noting that most of the International Federations are struggling for funds currently primarily because of one reason i.e because Tokyo 2020 being postponed to the next year, the IOC Revenue Shares to everyone also stands postponed. This has caused huge cash-flow issues for various federations. FIBA, based in the Swiss municipality of Mies, is in the second tier of Federations, along with football, cycling, volleyball and tennis, and would have received the bulk of its $25.95 million payout from its share of the Olympic Games revenue in September. The absence of the same and drying up of other revenue sources due to Covid19 has put FIBA in difficult financial position.

IOC declares – Support to be given but after assessment of needs for everyone
IOC had declared $150 Mn aid package for the struggling associations but has said the funds will only be released after assessment of needs.
The IOC has said support will “come in different forms and will be decided after an assessment of needs and on a case-by-case basis”. “FIBA is in constant communication with the IOC in this respect and the matter is currently in progress,” the spokesperson for FIBA told the website.

“Considering this is a process affecting also other IFs, we will await further announcements by the IOC.”

The FIBA spokesperson said it had not yet applied for a loan covered by the initiative.

“Once we receive further information we will be in a position to evaluate whether FIBA is eligible for such scheme and, if yes, whether we will apply,” the spokesperson added.

The International Weightlifting Federation, the International Handball Federation and the International Shooting Sport Federation are among those to have turned down financial support from the IOC.

Meanwhile FIBA has begun planning for the World Cup 2023

The board of the FIBA Basketball World Cup 2023 has begun plans for the event. At a video conference meeting last week the board members discussed the governance and management structure for the tournament in Indonesia, Japan and the Philippines. Subjects included financial strategies and finalization of the master plan for the World Cup, which will be the first to be held in multiple countries.

FIBA is eager to build on the perceived success of the 2019 event in China, which involved a record 32 teams and was won by Spain. The board is chaired by FIBA central board member and senior International Olympic Committee figure Richard Carrion and also comprises FIBA president Hamane Niang, FIBA secretary general Andreas Zagklis and other central board members Manuel V. Pangilinan, Erick Thohir and Yuko Mitsuya.

Carrion said: “We were all witness to an incredible event last year in China. The next FIBA Basketball World Cup will be brought to another level in 2023, taking place in Asia across three countries, and we are looking forward to the continued collaboration with these host nations.”

The next World Cup, which will again involve 32 teams, will tip off with a group phase in all three host countries, with the final phase to be played in Manila, the capital of the Philippines. The tournament is scheduled for 25 August to 10 September.