Sponsorship and TV Rights of the Olympic Games. ESADE Business School 29th of January, 2014
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Sponsorship and TV Rights of the Olympic Games. ESADE Business School 29th of January, 2014

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This presentation explores de sources of income of the Olympic Family and deepen in the model of Commecialisation of the Olympic Games and the ways in which the resources are shared.

This presentation explores de sources of income of the Olympic Family and deepen in the model of Commecialisation of the Olympic Games and the ways in which the resources are shared.

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Sponsorship and TV Rights of the Olympic Games. ESADE Business School 29th of January, 2014 Sponsorship and TV Rights of the Olympic Games. ESADE Business School 29th of January, 2014 Presentation Transcript

  • Sponsorship and TV Rights of the Olympic Games Prof. Dr. Emilio Fernández Peña emilio.fernandez@uab.es Website: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 • TOP Sponsorship Programs (Since 1985) (Global) IOC • National Sponsorship Programs HOST CITIES (USOC and OCOG) (Local) •TV Rights Selling (Global) •Ticketing (Local, OCOG) •Merchandising (Local, OCOG)
  • Olympic Games Media Environment System Construction of reality International Federation IOC NOC’s Radio Broadcasters Newspaper Social Media Global Spectacle TV News 4,700 million people Top sponsors Audiences NBC 214 million people
  • Importance of Communication and marketing Nearly 90% of the total income comes from Communication • IOC HOST CITIES • 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 • Exclusivity: only one operator, one country • Generally, Television and Internet, to the same operator IOC HOST CITIES •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) • Public Service Model in Europe and Private in North America IOC HOST CITIES • 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 Revenue distribution: television broadcast rights 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% Source: Own elaboration based on data from Preuss (2000, 107-112), IOC (2008A, 2008B and 2000) and Payne (2006: 48).
  • Jacques Rogge (2001-2013) • Continues the changes Samaranch’s Model with some slighly IOC HOST CITIES • 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 Revenue from television broadcast rights in the USA and Europe Total $ USA $ USA % Europe $ Europe % (millions) (mill/channel) Total (millions) Total 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 _____ Source: Own elaboration based on data from the IOC (2008A, 2012B and 2000) and The New York Times.
  • Revenue Sharing • 10% IOC •49 % of TV Rights for the OCOG IOC HOST CITIES •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 You have the chance to associate your brand to the olympic rings • IOC HOST CITIES •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 • Money IOC HOST CITIES •Services or contributions in kind
  • TÍTULO Total IOC revenue per 4-year period from television and sponsorship Television TOP Sponsors 19931996 47% 19972000 48% 20012004 53.2% 20052008 50% 15.8% 15.3% 10.6% 16% Domestic Sponsors 19% 17.3% 20.3% 24% Total Sponsors 34.8 32.6% 30.9% 40% Source: Own elaboration based on data from the IOC (2008A and 2010B) (*estimate).
  • TÍTULO TOP Sponsors Programme Games Partners Number of participating NOCs Revenue (million) 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 Source: Own elaboration based on data from the IOC.
  • Revenues Sharing • Sport are a guarantee for great audiences • Olympic Sport is a complete spectacle: almost all the sports IOC HOST CITIES 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
  • http://ceo.uab.cat