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/