Continuing the story of the 1983-84 Los Angeles Olympic coins...When we last left the Hearing, William Simon, former US Secretary of the Treasury and then-current President of the United States ("US") Olympic Committee ("USOC"), had concluded his prepared remarks and was about to be questioned by the Hearing Committee.
Simon was first asked by Committee Chairman Garn if he believed that the issues raised by the Treasury were "insurmountable" or if they could be "worked out"?
Simon replied, "Absolutely, they can be worked out ."
He also voiced his support for the use of a private marketing firm to handle the promotion, sales and distribution of the LA Olympic coins, questioning if the Treasury/Mint was equipped to successfully handle the program's domestic and international marketing requirements.
Simon strongly declared that if the coin program did not get approved, the Olympic Committee would find a way to generate funds - without asking for a Federal appropriation - but that it would likely be very difficult to raise enough money to support all of the Olympic Committee's planned programs, including those planned beyond the 1984 Olympics.
Before Peter Ueberroth testified, the Committee entered into the record written statements from two of the bill's co-sponsors: Theodore Fulton Stevens (R-AK) and Samuel Ichiye Hayakawa (R-CA).
From Senator Stevens' statement:
"I agree the three questions this committee must address are: Should the Government commemorate the 1984 Olympics by minting special coins? Should they be marketed by a private group? And does [the Senate bill] authorize the proper number, denomination, issues, and designs of coins?"Senator Stevens believed "Yes" the 1984 Olympics were worthy of US commemorative coins. "Yes" a private marketer was better suited to promote and distribute the proposed coin program. And "Yes" the bill proposes the correct mix of coins and sets reasonable limits on the coin program.
I'd expect nothing less from a bill co-sponsor!
Senator Hayakawa's statement followed. He argued in favor of the coin proposal from a financial impact perspective. His comments included:
"I do not believe the American taxpayer should be burdened with the responsibility for lack of sufficient funding or possible debt any more than the Los Angeles taxpayer, but the LAOOC and USOC need our help to insure that they will be able to present the best possible Olympics to the world. The Olympic Coin Act will enable us to aid this endeavor without any cost to the taxpayer."And...
"The assets obtained from the coin sales would be a significant source of revenue for the LAOOC, USOC, and US amateur athletics. The revenues will be shared by the two committees to prepare both Los Angeles and our athletes for the Games. All revenues in surplus of those needed for the Games will be divided among our amateur sports organizations; 40 percent will go to the USOC, 40 percent to the sports organizations in California, and 20 percent to the US national governing bodies [of amateur athletics]."Peter Ueberroth, President, Los Angeles Olympic Organizing Committee then came forward to testify.
He first provided the Committee with the background on how the 1984 Los Angeles Olympics came to be the responsibility of a private organization (i.e., LAOOC) vs. a State or City government - essentially, the passage of Proposition 13 in California at roughly the same time the Games were awarded to Los Angeles prohibited the use of taxpayer funds to pay for the Olympic Games.
He then went on to discuss potential funding mechanisms that had been used for past Games. He noted that Government funding was out and that a fund-raising lottery was not possible due to California law. Thus, the sale of commemorative coins was viewed as an important viable option.
Note: In addition to the above, Ueberroth referenced the efforts by the LAOOC and USOC to raise funds through TV/Radio broadcast rights, ticket sales, corporate sponsorships and licensing deals.Ueberroth used the coin programs of the 1976 Montreal, Canada Olympics and 1980 Moscow, Russia Olympics as recent examples of numismatic fundraising; he stated each of these program was "very successful". (This success is a matter of perspective and can be debated.)
Each of these programs was a large, multi-coin program, and served as a framework for the proposed Los Angeles Olympic coin program. The Montreal and Moscow coin programs provided funds to the USOC to support US athletes and, thus, a similar model - with larger revenue potential due to the fact the coins would be issued for a US-based Olympics - was sought.
Harry Usher, Executive Vice President, Los Angeles Olympic Organizing Committee followed Ueberroth. Usher's focus was on the search and selection process for the coin program's marketing partner - a controversial aspect of the proposed coin program.
Usher outlined the five criteria used by the LAOOC:
1. The partner needed to be a World marketer
2. The partner needed the financial resources to manage the scope of the proposed program
3. The partner needed to be contractually obligated to assume all costs and financial risks for the coin program
4. The partner had to guarantee the LAOOC a return if the coin program was approved
5. The partner agreement would need to provide "protection for ourselves and for the optimum return to the LAOOC"
He noted that from the six proposals submitted to the LAOOC, the joint venture proposal of Lazard Freres and Occidental Petroleum was accepted. The combined groups met the established criteria for a marketing/distribution partner and had the added benefit of team members that had worked on the previous Montreal Games and Moscow Games coin programs.
Importantly, Lazard Freres/Occidental Petroleum guaranteed the LAOOC $50 million regardless of the program's sales success. The pair also offered the LAOOC a favorable payout schedule that optimized the possible overall return to the LAOOC. (Such financial guarantees are not made lighly in business, Lazard Freres/Occidental Petroleum was likely planning a very aggressive pricing model for the coins in order to secure the funds promised.)
See "
1983-84 Los Angeles Olympics - The Hearing / Part 3 to continue the story of other witnesses at the Hearing.
For other of my posts about commemorative coins and medals, including more modern commemorative coin stories, see:
Commems Collection 
Posted 04/29/2026 12:42 pm
