• World Athletics President Sebastian Coe defended his decision to pay prize money to track and field gold medalists for the first time at the Paris Olympics this summer.
• Coe told CNBC that it would be "inconsistent" for the sports governing body to benefit from lucrative broadcast and sponsorship deals without compensating its star players.
• The former British athlete and four-time Olympic medalist announced in April that gold medalists would receive $50,000.

World Athletics President Sebastian Coe defended his decision to pay prize money to track and field gold medalists for the first time at the Paris Olympics this summer, suggesting that the initiative could be extended to future games.

The former British athlete and four-time Olympic medalist told CNBC last week that it would be "inconsistent" for the sports governing body to benefit from lucrative broadcast and sponsorship deals without compensating its star players.

"Athletes are, in essence, the bearers of the revenues that we get," he told CNBC's Tania Bryer.

"Their performances at an Olympic Games, in our own World Championships, provide world athletics with broadcast revenue from the International Olympic Committee and at a world championship level," he continued.

"They are largely responsible for the sums, the revenue streams, the sponsorship that comes into the sport. I've always felt that it was really important to recognize that."

Coe surprised the sporting world in April when he announced that gold medalists in each of the 48 athletics events in Paris will for the first time receive $50,000 at this year's Olympic Games.

The move was welcomed by athletes but sparked backlash from the bosses of other sports, who claimed that putting a monetary value on performance took away from the spirit of the games.

Five-time British Olympic rowing champion Steve Redgrave told the BBC in May that it would create "an us and them situation" between sports.

The International Olympic Committee (IOC) doesn't pay direct prize money for medals. Last month the IOC said it is "common practice" for National Olympic Committees, as well as governments, sponsors and other private institutions, to provide financial rewards to athletes for their performances.

Coe said the move was part of his wider two-part strategy to better recognize competitors since assuming the presidency in 2015. The first phase focused on allocating funds to World Athletics' national governing bodies to support athletes and pay for projects.

He noted, however, that the direct payments to gold medalists would provide greater "financial viability" and a longer term track for individual athletes and their families.

"It's just inconsistent for me, as president of World Athletics to talk about new fresh income streams and sponsors, you know, 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," he said.

"I think they deserve some skin in the game. That's in simple terms why we've done it."

Coe, who is serving his third term as World Athletics president, deflected rumors that he may be in line to succeed Thomas Bach as IOC president. He said he was "focused on every minute" of his remaining three-year term.

The Olympics kicks off in Paris on July 26 and runs until Aug. 11, with the Paralympics commencing later that month.

Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.