{"id":202977,"date":"2022-06-20T08:33:15","date_gmt":"2022-06-20T12:33:15","guid":{"rendered":"https:\/\/fasterskier.com\/?p=202977"},"modified":"2022-06-20T16:06:24","modified_gmt":"2022-06-20T20:06:24","slug":"usss-dexter-paine-and-fis-president-eliasch-weigh-in-on-controversial-ski-congress","status":"publish","type":"post","link":"https:\/\/fasterskier.com\/2022\/06\/usss-dexter-paine-and-fis-president-eliasch-weigh-in-on-controversial-ski-congress\/","title":{"rendered":"U.S. Ski & Snowboard’s Dexter Paine and FIS President Eliasch Weigh In on Controversial Ski Congress"},"content":{"rendered":"

Elections at FIS Congresses are normally not the scene of political intrigues, particularly when there is only one candidate for President. Yet, in a surprise twist, a bloc of powerful ski nations walked out on FIS President Johan Eliasch\u2019s uncontested election and voted out Dexter Paine, the U.S. Ski & Snowboard representative, as well as a FIS Vice President and Councilor.<\/span><\/p>\n

Prior to the vote for President on May 26th in Milan, Italy, Croatia\u2019s representative <\/span>Vedran Pavlek<\/span> insisted that the procedure be changed to allow a yes, no, or abstaining vote. Denied by FIS Legal Counsel, the delegates of <\/span>Switzerland, Austria, Germany, Croatia and Scandinavia walked out. In all, only 70 of the 117 available votes were cast\u2014just over the 63 minimum needed to reelect Eliasch.\u00a0<\/span><\/p>\n

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U.S. Ski & Snowboard representative Dexter Paine was ousted from the FIS Council after a vote during late May Congress sessions. (Photo: U.S. Ski & Snowboard)<\/figcaption><\/figure>\n

The vote for FIS council followed, and Dexter Paine, who has served on the council since 2014, found himself in third lowest position\u2014an abrupt turn of events for US skiing\u2019s representative.<\/span><\/p>\n

\u201cIt was a real surprise,\u201d Dexter Paine said on a call with FasterSkier. \u201cA year ago, I was elected with the second largest number of votes. I think it was more of a protest vote against Johan [Eliasch], because, ultimately, he was the only name on the President’s ballot.\u201d\u00a0<\/span><\/p>\n

\u201cOne of the things that I find disappointing,\u201d Paine said, \u201cis that I wish people were more direct and more open on the council and within that community, rather than being political.\u201d<\/span><\/p>\n

Austria\u2019s representative, Christian Scherer, seemed to sum up the underhanded attitude in an interview with <\/span>Kleine Zeitung<\/span><\/i>, <\/span>saying<\/span><\/a>, \u201c<\/span>We don’t want to say whether we voted for [Paine] or not. What I can say is that we always had excellent connections with the United States.”<\/span><\/p>\n

Paine explained that he received close to the same number of votes (74) as Eliasch and said, \u201cI assume all the countries that walked out voted against me.\u201d\u00a0<\/span><\/p>\n

President Johan Eliasch said that Paine\u2019s presence on the council \u201cwill be missed,\u201d adding, \u201cHe’s really been one of the people before I came in that was very strongly driving change for the better. His contribution has been invaluable over the years.\u201d<\/span><\/p>\n

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The lead men kick and glide as a large group early in the 2022 50 k classic at Holmenkollen in Oslo, Norway. (Photo: NordicFocus)<\/figcaption><\/figure>\n

Paine had long advocated for modernization efforts within FIS\u2014a position that led him to wholeheartedly endorse Eliasch\u2019s <\/span>progressive platform<\/span><\/a>. Together, they rode a victorious crest during last year’s FIS elections.\u00a0<\/span><\/p>\n

Their decisive electoral wins in 2021 were interpreted as a mandate for change, and the two men pushed for Eliasch’s positions, key among them, the <\/span>centralization<\/span><\/a> of media rights that would help fund an overhaul of how FIS presents its sports and funds its athletes.\u00a0<\/span><\/p>\n

Just one year in, the representatives of large ski nations have seemed to sour on their enthusiasm for disrupting the status quo, with those that walked out of the Congress and voted out Paine decrying the election as undemocratic.\u00a0<\/span><\/p>\n

\u201cAn election is called that because one has a choice,\u201d <\/span>said<\/span><\/a> Urs Lehmann, the head of Swiss Ski. \u201cBut that didn’t exist, that goes against our understanding of the law.” The Swiss, according to Lehmann, are considering legal action to invalidate the election.<\/span><\/p>\n

FIS statutes stipulated that candidates who wished to run for President needed to register by March 31st. When none did, Eliasch, who was voted in last year in a competitive election, was left as the lone candidate.<\/span><\/p>\n

\u201cAnyone could have run against [Eliasch] 60 days ago,\u201d said Paine. \u201cSo, if the folks who objected to the ballot were so focused on a democratic process, they should have run someone 60 days ago. Clearly, they didn’t think that they could run someone and have them win.\u201d<\/span><\/p>\n

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Johan Eliash was elected president of FIS Council in June 2021. (Photo: FIS-Ski.com)<\/figcaption><\/figure>\n

Lehmann insisted that the discord with Eliasch only began to occur after March 31, when, according to <\/span>Tages Anzeiger<\/span><\/i>, Eliasch presented \u201chis <\/span>sometimes <\/span>hair-raising<\/span><\/a> plans<\/span>\u201d<\/span> to National Ski Associations. <\/span>\u201cThe whole thing has only escalated in the last few weeks,\u201d said Lehmann, adding, \u201cthe time for a serious candidacy was simply too short.”\u00a0<\/span><\/p>\n

Paine sees Lehmann\u2019s motivations differently. \u201cI think Urs Lehmann, who’s the head of Swiss Ski, desperately would like to be the President of this organization,\u201d said Paine. \u201cHe lost last year and he could have filed his name and run this year, if he chose to.\u201d Better that, Paine thought, than to \u201ccreate a disruptive event at the Congress.\u201d<\/span><\/p>\n

The discontent directed at Eliasch and Paine over the electoral process seems disingenuous. The former FIS President, the late <\/span>Gian Franco Kasper<\/span><\/a>, ran unopposed throughout the course of his 23 year Presidency\u2014and had much more to do with a plan to centralize media rights under FIS.<\/span><\/p>\n

\u201cI\u2019ve been a pretty vocal advocate for centralization of media rights,\u201d Paine said. \u201cEvery successful sports organization out there, Formula One [F1], NFL, Premier League, all have centralized rights.\u201d\u00a0<\/span><\/p>\n

Paine\u2019s position has been backed by U.S. Ski & Snowboard President and CEO Sophie Goldschmidt, who wrote that she is \u201c<\/span>pro-centralization.\u201d <\/span>The rights, she said \u201care valuable, and centralization can offer a significant revenue increase for countries across the board. This is a proven strategy across many successful sports globally, and by building the right structure, all of the national governing bodies under FIS can benefit.\u201d<\/span><\/p>\n

Under the current long-standing structure, National Ski Associations (NSAs) presumed ownership of the media rights to FIS events hosted in their countries. Nearly all nations sold the totality of these rights to Infront Sports and Media who in turn brokered deals with broadcasters around the world to air these events.<\/span><\/p>\n

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Sophia Laukli (right) skis in the pack during a mass start skate race in Val di Fiemme, ITA, the final stop in the 2021-22 FIS Tour de Ski. (Photo: NordicFocus)<\/figcaption><\/figure>\n

Eliasch and Paine advocated a different approach\u2014a proposal called the <\/span>FIS Concorde Agreement<\/span><\/a>, in which FIS would own or distribute the rights previously controlled by the NSAs and sell them, much as Infront has done.\u00a0<\/span><\/p>\n

The potential windfall of income to FIS by retaking control of the media rights would be substantial. \u201cThe estimate is that Infront makes somewhere between 40 and 50 million euros on their ski contracts,\u201d said Paine. \u201cIf you could instead allocate that increased income to increase prize money for athletes, increase distributions for our members, I think those would all be really good things. We can also do things like give digital rights to athletes.\u201d\u00a0<\/span><\/p>\n

Currently, an athlete is unable to post videos of themselves racing due to copyright infringement. Paine suggested that if FIS owned the distribution rights, an athlete such as Jessie Diggins would have been able to post footage of her Tour de Ski win.\u00a0<\/span><\/p>\n

\u201cToday, athletes don’t have that opportunity,\u201d Paine said, \u201cbut if we were to control those rights, we could do that to really help our athletes, not just to generate more revenue, but increase our appeal globally.\u201d<\/span><\/p>\n

According to Hannah Kearney, an athlete representative on the FIS council, \u201c<\/span>This is something that would benefit athletes, so I believe they support the centralization.\u201d However, Kearney wrote that \u201cathletes from different countries definitely have unique perspectives on the issue which makes it hard to make a broad claim about how all athletes feel.\u201d\u00a0<\/span><\/p>\n

The proceeds would also fund the improvement of viewers’ experience. \u201cI think cross country is a great product,\u201d said Eliasch, \u201cbut we can make the television production more attractive, so what you see on television is more exciting. That applies across the board. I mean, we’re talking about using drone technology, telemetrics packages, more cameras, stuff like Formula One does. We need a series like \u2018Drive to Survive\u2019 like F1.\u201d<\/span><\/p>\n

Netflix’s <\/span>Drive to Survive<\/span><\/a> takes viewers inside the inner workings of F1 and has helped boost interest in the motorsport. The show has been touted by Eliasch as an example of what would be possible if FIS had centralized rights. Asked if he could envision a similar series on cross country skiing, he said, \u201cYeah, definitely.\u201d<\/span><\/p>\n

While Eliasch has promoted the model of F1, Paine has looked to biathlon, which he said was \u201ca perfect example\u2014they’ve been wildly successful. The new biathlon leadership has done a great job with their television contracts, with sponsorship, and really grown revenues and distributions very nicely for athlete prize money.\u201d<\/span><\/p>\n

\u201cIt is <\/span>the<\/span><\/i> model we should be looking at,\u201d Paine said chuckling. \u201cI\u2019ll be really direct about that.\u201d<\/span><\/p>\n

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The course in Val di Fiemme, ITA is prepped and ready for the men’s mass start during the 2021-22 FIS Tour de Ski. (Photo: NordicFocus)<\/figcaption><\/figure>\n

The basic concept is that FIS, by reinvesting the profits from the rights, would be able to improve both the media product and the competitive field by supporting coaches and athletes from underfunded nations. The more attractive media product and broader competition would draw in more viewers, and in turn, more profits.\u00a0<\/span><\/p>\n

In theory, the Concorde Agreement would raise all National Ski Associations, through a profit sharing initiative between FIS and the event hosts, and by distributing proceeds to all NSAs.<\/span><\/p>\n

Clearly, that is not the view of the big players in the ski world, who have viewed the rapid moves by Eliasch to remove Infront as a threat to their bottom line. <\/span>\u00a0<\/span><\/p>\n

Paine explained that the largest TV revenue contracts go to Austria and Switzerland, with Germany and Norway likely close behind. \u201cSo I think their very simple calculus is,\u201d Paine said, \u201cthey have the most downside\u2014not what is best for the athletes and the sport.\u201d\u00a0<\/span><\/p>\n

\u201cIf you’re Austria, you make \u20ac25 or \u20ac30 million a year from your TV contract,\u201d said Paine. \u201cThat’s how you fund your athletes, and you don’t want to end up with \u20ac15 million. Now, Johan [Eliasch] would say that \u20ac25 [million] will, in fact, be \u20ac30, or \u20ac35 [million]\u2014under a new contract [with] centralized rights. But he needs to make sure that people get comfortable with that and understand the math which seems compelling.\u201d<\/span><\/p>\n

The FIS President recognized the hesitancy of large ski nations, saying, \u201cFor the dominant alpine nations, this is a big change. But it is essential if we want to move forward, because today we don’t have a digital media platform. We don’t have any content. The app and the website are [both] done by the same company\u2014which control FIS\u2019s media and broadcast rights.”\u00a0<\/span><\/p>\n

For FIS, the problem of Infront as a middleman goes beyond recapturing profits and platforms\u2014the Swiss based media company has made deals that run counter to the interests of both FIS and the NSAs.<\/span><\/p>\n

\u201cThey\u2019ve been very clever,\u201d Eliasch said of Infront. \u201cThey have done <\/span>the centralization of FIS\u2019s media and broadcast rights\u2014what FIS should have done twenty years ago.\u201d<\/span><\/p><\/blockquote>\n

\u201cHistorically,\u201d said Eliasch of the existing business model, \u201cthe FIS World Cup rights have been sold outright, mostly at below fair market value with very onerous terms contributing to a loss of viewership.\u201d\u00a0<\/span><\/p>\n

\u201cA good example is Scandinavia,\u201d continued Eliasch. \u201cFIS World Cup rights were sold to a marketing agency who in turn sold them to a web based streaming platform for more than double what they paid.\u201d<\/span><\/p>\n

Eliasch noted that while \u201cthis model proves exceptionally profitable for the marketing agency, the strategy behind the sale is problematic to our future. The streaming channel is a specialty channel with small viewership compared to mainstream broadcasters. Consequently, less people are able to access the product and viewership is down a staggering 40% in Norway and Sweden which is disastrous for our sport.\u201d\u00a0<\/span><\/p>\n

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Norway’s Therese Johaug stands atop her final podium at Holmenkollen, her home course in Oslo, in March 2022. (Photo: NordicFocus)<\/figcaption><\/figure>\n

The streaming service that Eliasch was referring to is NENT, now rebranded as Viaplay, whose purchase of the rights has taken skiing events off public TV, to various degrees, in Norway, Sweden, and Finland, and put them behind a paywall\u2014an unpopular move that has suppressed viewership in a key market for cross country skiing.\u00a0<\/span><\/p>\n

In all, the sport has <\/span>lost 27%<\/span><\/a> of its total audience this season, with Norway losing close to half in just two years. With Scandinavia hemorrhaging viewers, the Viaplay deal could have hardly come at a worse time: the sport is poised to lose a further third of its audience in Russia should it remain banned. All things being equal, this possibility would see cross country skiing\u2019s viewership crater to just a third of what it was a decade ago.\u00a0<\/span><\/p>\n

While the windfall to Infront from brokering the rights to Viaplay is purportedly worth more than \u20ac10 million a year and extends until the 2024\/25 season, the sponsorship value lost in the past year\u2014more than<\/span> \u20ac22 million<\/span><\/a>\u2014suggests that the deal only made sense to the third party selling the rights.<\/span><\/p>\n

\u201cFuture deals will be based on previous audience metrics,\u201d said Eliasch. \u201cAny decline in viewership is a decline in value.\u201d<\/span><\/p>\n

For Ski Associations there was little recourse to prevent the Viaplay deal, explained Eliasch. \u201cThe current agency rights agreements are so restrictive they prevent an NSA the ability to approve or reject distribution channels, which today is a \u2018standard\u2019 right of the IP rights holder.\u201d\u00a0<\/span><\/p>\n

The FIS President felt that the Viaplay deal demonstrated what happens \u201cif you do an agreement with a complete buyout.\u201d<\/span><\/p>\n

By buyout, Eliasch was referring to the policy of selling the totality of the media rights, rather than, say, granting a \u201clicense for a live showing and then you [get] the rights back.\u201d<\/span><\/p>\n

Eliasch felt a more typical approach would be a commission based contract that grants a \u201clicense for a live showing and then you [get] the rights back.\u201d<\/span><\/p>\n

\u201cThat’s how it [normally] works,\u201d said Eliasch, adding, \u201cIf you have a middleman involved, he gets a 15% commission. You get a minimum guarantee, you have controls over the distribution channels. That’s kind of how the business works today. An outright sale to an agent is not how the business is done.\u201d<\/span><\/p>\n

When asked how Infront had gained so much influence over FIS, Eliasch replied: <\/span><\/p>\n

\u201cI can\u2019t\u2026I can\u2019t begin to explain that. I can only say these agreements make the Versailles Treaty look like a good treaty. But again,\u201d added Eliasch, \u201cwe can only blame ourselves. And that is what we have to change.\u201d<\/span><\/p><\/blockquote>\n

\u201cWe must evolve,\u201d he said. \u201cIt is essential if we want to move forward. We\u2019re not in control of our own destiny.\u201d<\/span><\/p>\n

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Norway with the lead during a 15 k mass start classic in Val di Fiemme, ITA in January 2022. From left to right, Even Northug, tour leader Johannes H\u00f8sflot Kl\u00e6bo, and Erik Valnes. (Photo: NordicFocus)<\/figcaption><\/figure>\n

Eliasch has been clear in his vision for the future of FIS, saying, \u201c<\/span>We are an FIS for all members, not just for the chosen few\u2014we are for all disciplines, all over the world. I want to strengthen our commercial activities. I want to make sure we\u2019re fit for purpose. I want us to expand our reach, and make us more attractive to young people.\u201d<\/span><\/p>\n

Paine remained steadfast in his views despite running afoul of entrenched interests at FIS, saying, \u201cI wouldn’t do anything differently in terms of the positions we advocate for, or what we think is best for the athletes in the sport. I’m very much a person that does what I say I’m going to do.\u201d\u00a0<\/span><\/p>\n

The election loss was bittersweet for Paine, as he felt that much of his agenda set out in the last couple of years had been accomplished: \u201cWe were very focused on electing women to the council,\u201d said Paine, \u201cSo we had put through the statute change that required three women [to be elected] and actually four women were elected, which I think is great for the organization.\u201d<\/span><\/p>\n

He listed other goals attained at this spring’s Congress such as the culmination of a ten year effort to officially change the name of FIS to include Snowboard, as well as the (likely) integration of Para sports under the FIS umbrella at the end of June.\u00a0<\/span><\/p>\n

\u201cOn the alpine side, we doubled the number of World Cup races we have in the US, including a block in March, which is terrific. We were able to get through many of the things we’ve worked really hard on, that I think will have a really positive impact on athletes,\u201d said Paine, adding, \u201cSo that’s exciting.\u201d<\/span><\/p>\n

Paine\u2019s presence on the council will be missed by many. \u201cI sincerely appreciate Dexter’s sense of humor and his willingness to stand up for what he believes is right,\u201d Kearney wrote. \u201cDexter was an energetic, outspoken, and thoughtful Council member. He advocated for the athletes and was a wonderful mentor to me.\u201d\u00a0<\/span><\/p>\n

U.S. Ski & Snowboard President and CEO Sophie Goldschmidt wrote that \u201c<\/span>Dexter has been an incredible advocate for modernization and making the FIS more democratic throughout his time on the FIS council.\u201d She added that his work to get smaller nations and women represented on the council \u201cwill help bring a global and more inclusive perspective to the FIS.\u201d<\/span><\/p>\n

While the US continues to have a vote on the council through athlete representative Hannah Kearney, her role is somewhat different from that of Paine\u2019s. Selected by the fourteen athlete representatives, she wrote that her role is to \u201c<\/span>represent the interest of the athletes, whereas elected council members balance the interests of all stakeholders across the FIS family.\u201d\u00a0<\/span><\/p>\n

\u201cI am really sad that we (the US) don’t have an elected voice,\u201d Paine said. \u201cForget whether it’s me or someone else, I just think it is important to have a voice.\u201d\u00a0<\/span><\/p>\n

\u201cThe good news is,\u201d said Paine, \u201cJohan continues to call a lot. So, I think we continue to have the ear of the presidency.\u201d<\/span><\/p>\n

Goldschmidt noted that the US is still well represented in FIS committees and that the \u201c[U.S. Ski & Snowboard] has some great relationships with other countries and members of FIS,\u201d including, \u201cnew elects Deidra Dionne from Canada, Magdalena Kast of Argentina, and Fiona Stevens of New Zealand.\u201d<\/span><\/p>\n

\u201cWhile we\u2019re disappointed that Dexter was not reelected,\u201d wrote Goldschmidt, she pointed out that Paine still retains influence at FIS. After his electoral loss, he was voted in as an Ex Officio Honorary Member, a title that lacks voting rights but will, according Goldschmidt, allow Paine to \u201cparticipate in council meetings and encourage U.S. Ski & Snowboard-backed changes.\u201d<\/span><\/p>\n

\u201cHopefully,\u201d Paine reflected on his eight year career on the FIS council, \u201cit ultimately has been a real benefit to the athletes at FIS.\u201d<\/span><\/p>\n

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Germany’s Sofie Krehl in course during a 10 k mass start classic in Val di Fiemme, ITA in January 2022. (Photo: NordicFocus)<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Elections at FIS Congresses are normally not the scene of political intrigues, particularly when there is only one candidate for President. Yet, in a surprise twist, a bloc of powerful ski nations walked out on FIS President Johan Eliasch\u2019s uncontested election and voted out Dexter Paine, the U.S. Ski & Snowboard representative, as well as a FIS Vice President and Councilor. Prior to the vote for President on May 26th in Milan, Italy, Croatia\u2019s representative…<\/p>\n","protected":false},"author":102632,"featured_media":202980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10806,19538,47,10809],"tags":[3213,20617,173,20619,19652,2214,20618,20620,1398,19998,20124,15333],"_links":{"self":[{"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/posts\/202977"}],"collection":[{"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/users\/102632"}],"replies":[{"embeddable":true,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/comments?post=202977"}],"version-history":[{"count":1,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/posts\/202977\/revisions"}],"predecessor-version":[{"id":202986,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/posts\/202977\/revisions\/202986"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/media\/202980"}],"wp:attachment":[{"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/media?parent=202977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/categories?post=202977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fasterskier.com\/wp-json\/wp\/v2\/tags?post=202977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}