BRO TIME

First- begin reading “Olympics 2012: Brand Bolt has unique appeal for sponsors”

Article Questions: Write on the back-

1. Why is Bolt attractive for sports marketers?

2. Do you think that Puma teaming up with Bolt will pay off for Puma? Why or why not?

3. Do you believe that Bolt’s line can become popular or tap the US market? Why or Why not?

Bolt Line Meet the Artist Behind the Line

The Olympic Money

Machine

Economics in the Sports and

Entertainment Industry

Cost of the Games over the Years

$1.9 BillionTokyo ‘64

$175 MillionMexico City ‘68

$611 Million

Munich ‘72

$1.4 BillionMontreal ‘76

$2 BillionMoscow ‘80

$4 BillionSeoul ‘88

$546 MillionLos Angeles ‘84

$15 BillionAthens ‘04

$40 BillionBeijing ‘08

$14.4 BillionLondon ‘12

$9.4 BillionBarcelona ‘ 92

$1.8 BillionAtlanta ‘96

$3.8 BillionSydney ‘00

Putting on the Games

Overall cost - $14.4 Billion

Nearly DOUBLE the estimate given in 2005

Who foots the bill? $9.6 Billion

Central Government

$3.4 BillionNational Lottery

$1.4 BillionCity of London

Cost and Impact of London Olympic Games

Expected Revenue

Sponsorship - $1.1 Billion

Ticketing – About $1 Billion

Merchandising - $140 Million

International Olympic Committee – About $1.5 Billion

Olympic Broadcast Services - $300+ Million

TOTAL Expected Revenue = $4 Billion

Cost Breakdown for London ‘12

Olympic Related Construction = $11.3 Billion

Olympic Village/Media Center = $1.86 Billion

Olympic Venues = $1.86 Billion

Transportation = $1.34 Billion

Games’ Program Delivery = $1.12 Billion

Security and Policing = $1.28 Billion

Aquatics Center: $434 Million

Olympic rings on London Bridge:

$487,500

Interesting Facts about Olympic Budgeting in the Past

After terrorist attack in Munich in ‘72, security became an enormous part of the budget

Montreal in ’76 spent $1.4 billion and took over 30 years to pay off its debt

Los Angeles in ’84 spent $546 million and made the first hugely profitable recent Olympics ($222.5 million)

More Fun Facts: The People

61 counties participated in the London Olympics

The most EVER!

160,000 jobs created to sustain the games

23,900 athletes

20,600 press and broadcasters

4,800 family members of athletes

Broadcasting Rights

NBC paid $1.2 Billion for exclusive U.S. rights to the London Games

Will the multiple spoilers hurt the network?

Sponsorship

Form of Sales Promotion

Most often used in the sports and entertainment industries

Business relationship between a provider of funds or resources and an individual, event or organization that offers promotional exposure

World Wide Olympic Partners

Using the Olympic name

Grants companies exclusive global marketing rights within a certain product category

Generally sign on for 3-4 years

Commericals

VISA - Go World

Coca Cola - Support Our Athletes

P&G - Proud Sponsor of Moms

McDonald's - The Simple Joy Winning

Omega - The offical time keeper of the Olympics

Domestic Olympic Sponsors

Grants companies marketing rights in the host country only

Commercials

United – for the USA

UPS

Cisco

Endorsements

Approval or support of a product or brand, usually by a celebrity

Major source of income for famous athletes and celebrities

Top American Male Endorser

Expected to make more than Phelps in sponsorship deals

Endorsements: Nissan, AT&T, Gillette, Gatorade and Omega

Expected to bring in more than 6 million this year

Top American Female EndorserExpected to bring in 8-10 Million over the next 4 years

Attractive to marketers due to age and success for next Olympics in Rio

Landed large endorsement from Proctor and Gamble

Olympic Endorsement Video

Top Paid Athletes of the 2012 London Olympics

1. Roger Federer - $54.3 mil

2. LeBron James - $53 mil

3. Kobe Bryant - $52.3 mil

4. Maria Sharaporva - $27.1 mil

5. Kevin Durant - $25.5 mil

6. Carmelo Anthony - $22.9 mil

7. Usain Bolt - $20.3 mil

8. Novak Djokovic - $19.8 mil

9. Chris Paul - $19.2 mil

Top Non-Olympic Athlete Endorsers1. Tiger Woods - $60 million

2. Phil Mickelson - $57 million

3. Peyton Manning - $15 million

4. Dwight Howard - $12 million

5. Tom Brady and Kobe Bryant - $10 million

Olympics 2016: Marketing Rio

Branding the 2016 Olympic logo

The logo was opened up to designers throughout the country

Creating the Iconic Rio Logo for 2016

Exit Ticket

Choose your favorite athlete or celebrity

Create a list of 10 products or brands that you think that individual could endorse

Think outside the box – it doesn’t have to be limited to brands within their specific industry or sport

Article Links

http://www.dnaindia.com/sport/report_olympics-2012-brand-bolt-has-unique-appeal-for-sponsors_1724773

http://www.bizjournals.com/nashville/blog/2012/07/the-risky-gamble-of-olympic-athlete.html

http://www.huffingtonpost.com/2012/07/31/female-athletes-endorsements-sexualization-lack-of-visibility-research_n_1725786.html?utm_hp_ref=women&ir=Women

http://adage.com/article/news/sponsored-olympics-creative/236416/