Sponsorship and TV Rights of the Olympic GamesProf. Dr. Emilio Fernández Peña

emilio.fernandez@uab.esWebsite:ceo.uab.cat

Olympic Studies Centre, CEO-UAB. Universitat Autónoma de Barcelona

http://ceo.uab.cat

Main income sources and commercialisation programs of the Olympics

IOC HOST CITIES

• TOP Sponsorship Programs (Since 1985) (Global)

• National Sponsorship Programs (USOC and OCOG) (Local)

•TV Rights Selling (Global)

•Ticketing (Local, OCOG)

•Merchandising (Local, OCOG)

Broadcasters

Olympic Games Media Environment System

IOCInternational Federation

NOC’s

Construction of reality

Top sponsors Audiences

4,700 million people

NBC 214 million people

GlobalSpectacle

Radio

Newspaper

Social Media

TV News

Importance of Communication and marketing

IOC HOST CITIES

• Nearly 90% of the total income comes from Communication

• A bit more than 51% comes from the selling of TV Rights

• 51% of the global TV Rights comes from the American Television NBC

TV Rights selling philosophy

IOC HOST CITIES

• Exclusivity: only one operator, one country

• Generally, Television and Internet, to the same operator

•The operator with the best economic offer and able to reach the great majority of the audience of the country

Juan Antonio Samaranch Period: (1980-2001)

IOC HOST CITIES

• Public Service Model in Europe and Private in North America

• Control of the Negociations by the IOC and selling meanwhile auction

• Long term agreements for guaranteing finantial stability

•Negociations before the organizing city were known

TÍTULO

IOC HOST CITIES

1948-1968 1%-4% 99%-96%

1972-1980 10% 90%

1984-1992 33% 66%

1996-2004 40% 60%

2006-2014 51% 49%

Revenue distribution: television broadcast rights

Source: Own elaboration based on data from Preuss (2000, 107-112), IOC

(2008A, 2008B and 2000) and Payne (2006: 48).

Jacques Rogge (2001-2013)

IOC HOST CITIES

• Continues the Samaranch’s Model with some slighly changes

• Direct negociation with Big European Broadcasters•Germany•UK•France•Italy•Spain

• Selling the rights for 40 little countries to Sport Five

• Only the last years he come back to the long term agreements

•The least with NBC for the 4 Next Games

TÍTULO

Total $ (millions)

Barcelona 1992 631.1 401/NBC 63.5% 94.5 14.9%

Atlanta 1996 898.3 456/NBC 50.7% 247.5 27.55%

Sidney 2000 1,331.6 705/NBC 53% 350 26.2%

Athens 2004 1,494 793/NBC 53% 394 26.3%

Beijing 2008 1,737 894/NBC 51.4% 443 25.5%

London and

Vancouver 2012

____ 2,200/NBC ____ 746 _____

Revenue from television broadcast rights in the USA and Europe

Source: Own elaboration based on data from the IOC (2008A, 2012B and 2000) and The New York

Times.

USA $ (mill/channel)

USA % Total

Europe $ (millions)

Europe % Total

Revenue Sharing

IOC HOST CITIES

• 10% IOC

•49 % of TV Rights for the OCOG

•12 % of the TV rights for the USOC (20% of the Sponsorship)

• The Rest: •Internation Olympic Sport Federations•National Olympic Commitees•Olympic Solidarity

Why the Olympics are attractive as an investment for the Sponsors

IOC HOST CITIES

• You have the chance to associate your brand to the olympic rings

•The Olympics only offer a possitive image which is delivered to your company

•Self - improvement•Effort•Friendship

What do you offer to the Olympic Games as a TOP Sponsor Company

IOC HOST CITIES

• Money

•Services or contributions in kind

TÍTULO

1993-1996

Television 47% 48% 53.2% 50%

TOP Sponsors 15.8% 15.3% 10.6% 16%

Domestic Sponsors 19% 17.3% 20.3% 24%

Total Sponsors 34.8 32.6% 30.9% 40%

Total IOC revenue per 4-year period from television and sponsorship

Source: Own elaboration based on data from the IOC (2008A and 2010B) (*estimate).

1997-2000 2001-2004 2005-2008

TÍTULO

Games

1985-1988 Calgary/Seoul 9 159 US$96

1989-1992 Albertville/Barcelona 12 169 US$172

1993-1996 Lillehammer/Atlanta 10 197 US$279

1997-2000 Nagano/Sydney 11 199 US$579

2001-2004 Salt Lake/Athens 11 202 US$663

2005-2008 Torino/Beijing 12 205 US$866

2009-2012 Vancouver/London 11 205 US$950

TOP Sponsors Programme

Source: Own elaboration based on data from the IOC.

PartnersNumber of

participating NOCsRevenue(million)

Revenues Sharing

IOC HOST CITIES

• Sport are a guarantee for great audiences

• Olympic Sport is a complete spectacle: almost all the sports are

• The most famous athletes are in the Olympics

• Olympic sport guarantees emotion

• Olympic Sport is rich since the symbolic point of view

•The Olympic rings•The Olympic flame

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