On July 26, 2024, at the opening ceremony of the 2024 Paris Olympic Games in Paris, the U.S. delegation sailed on a boat along a ship on the Seine River.
Zhao Dingzhe | Afp | Getty Images
The U.S. Olympic and Paralympic Committee announced a $100 million grant on Wednesday to provide long-term financial support for future Olympic athletes.
The gift is the largest donation in the organization’s history, from Ross Stevens, founder and CEO of asset manager Stone Ridge Holdings Group. As awareness of the financial burden faced by many Olympic athletes grows: rigorous training schedules often come at the expense of traditional career paths and save money on finances.
As part of the gift, every Olympic and Paralympic athlete will receive $200,000 in financial benefits by participating in the 2026 Milan competition and future competitions in at least 2032. The six-figure awards are paid based on the Olympics the athletes participate in, and there is no largest award.
“We can create more financial safety nets thanks to Ross’ extraordinary generosity and philanthropic creativity – we can build a springboard that will enable these athletes to go beyond the Olympic and Paralympic careers,” USOPC President Gene Sykes said in a statement.
But there is a trap: the money won’t come out right away.
The first $100,000 will not start in the 20 years after the competition, or until the athlete turns 45 years old, before the future. USOPC recommends that it will be distributed within four years but can be used for any purpose of “doing business or supporting family members.”
The remaining $100,000 will be given after the death of an eligible athlete.
“It’s an incredible gift that will bring huge dividends to these athletes in life later,” said Sarah Hirshland, CEO of USOPC. “This does not replace the idea of trying to create charitable funds for athletes now and today, and we are doing the same.”
Hilshland said that while some Olympic athletes make a lot of money in endorsement deals, the vast majority of Olympic athletes don’t fall into this category.
“Not the salary these roles bring, there is certainly no retirement plan,” she told CNBC.
The United States is unique because 100% of the work done by USOPC is privately funded. Many countries have sports ministries that can operate and fund their Olympic teams.
Some other countries have also paid a lot of money for Olympic competitors they brought home. Medals can Earn up to $750,000 in gold in some jurisdictions.
Typically, the U.S. delegation has about 1,200 athletes, the largest of which, and is usually a big profit.
“We also have the most successful teams in the world, and historically, much larger than most competitive athletes in most countries,” Hilshland said. “So the scale and scope of the work we do here is very different from many of our peers around the world.”
Disclosure: CNBC parents NBCUniversal owns NBC Sports and NBC Olympics. The NBC Olympics are the American broadcast rights holders for the all-summer and winter Olympics by 2032.
