Going for Gold: The Business Side of the Olympic Games

With the 2024 Olympic Games in Paris, France just around the corner, thousands of athletes will soon be competing in 32 different sports that will be broadcast to people around the world through television, radio, and digital platforms. The Olympic Broadcasting Services is expected to produce more than 11,000 hours of content that will be provided to over thirty media organizations worldwide under media rights agreements negotiated with the International Olympic Committee (IOC), the governing body of the Olympics. Coverage of the Olympic games will reach billions of people, with some estimates projecting that up to half the world’s population will have the chance to experience the Olympics. Julie Aylsworth, associate professor in the Sport Management and Sport and Recreation Studies programs at George Mason University’s School of Sport, Recreation, and Tourism Management (SRTM), recently provided an overview of the commercial relationships through which companies can partner with the IOC and Olympic committees in gaining market exposure while supporting the games.

Olympic Partners are the top tier sponsors of the games.

The highest, most elite, and most expensive tier of Olympic sponsorship is “The Olympic Partner” (TOP) program. The Olympic Partner program consists of a small number of companies, anywhere from ten to fifteen, that agree to make a long-term financial investment of $200 to $300 million to support the Olympics. These companies partner with the IOC to provide services, technology, expertise, and financial support in facilitating the staging and marketing of the Olympic games. The revenue generated from these partnerships also supports the training and development of present and future Olympic athletes, the deployment of worldwide promotional activities, and the implementation of initiatives aimed at improving the Olympic fan experience. In return, Olympic Partners are provided with exclusive global marketing rights and opportunities within a designated product or service category. An Olympic Partner may use the Olympic symbol of interlocking rings and the Worldwide Partner designation in their marketing materials. A company that is a competitor of an Olympic Partner is prohibited from marketing or selling their product at the Olympics. For example, as one of the Worldwide Partners selected for the 2024 Olympics in Paris, the Coca Cola Company has been granted exclusive marketing rights in the category of “non-alcoholic beverages.” This recognition prohibits PepsiCola from selling its soda products at the summer games.

Sponsorship opportunities are available at the National Olympic Committee level.

Companies can also sponsor at a lower level through programs offered by the National Olympic Committee (NOC). The role of the NOC is to organize participation in the Olympics of the athletes in the country or international territory represented by that NOC. Sponsorship programs through NOCs are in categories not competing with the Olympic Partner program’s exclusive categories. The Olympic marketing rights granted by the NOC are effective within the NOC country or territory only. Presently, the IOC recognizes 206 NOCs. Among these is the NOC for the United States. Sponsors of U.S. athletes participating in the Olympics (“Team USA”) are allowed to use the Olympic symbol of interlocking rings in their advertising content along with the American flag and a statement saying, “Proud Supporter of Team USA.”

Local companies in the host city can work with the Olympics organizing committee.

Various sponsorship and partnership opportunities are also available through the Olympic Games Organizing Committee established once the host city is selected. Whereas sponsors in the Olympic Partner program are large multinational corporations, companies providing support of the games at the organizing committee level are smaller with products and services that are more closely aligned with the characteristics and culture of the host city and country.

The IOC has strict rules requiring a “clean” venue.

While there are many ways in which companies can be involved in the staging of the Olympics by providing their products and services in the hopes of gaining marketing exposure, it is important to remember that the IOC has strict rules in place which require a “clean” venue for the games. For example, IOC regulations stipulate that logos appearing on the uniforms and equipment of Olympians must conform to exact size specifications so that they are not too large. This contrasts with other sporting events where logos of corporate sponsors are prominently displayed throughout the venue.

The introduction of novel sports at the Olympics can generate interest in the host city long after the games have ended.

The introduction of a sport that has never been part of the Olympics generates heightened excitement and interest from people who love novel sports. Four new sports—skateboarding, sport climbing, karate, and surfing —made their first appearance at the Olympics during the 2020 Tokyo games. The 2024 Olympics in Paris will see the debut of break dancing as a medal event and the 2028 Olympics in Los Angeles will include the premiere of flag football in the program. The new lineup of Olympic events is sure to draw more attention from viewers who will want to see what all the excitement is about. The host city can leverage this excitement by marketing itself as a fun and exciting travel destination, long after the Olympic torch has been extinguished and the games have ended. This could provide the host city and country with the economic benefits from increased tourism which will help the citizens living there.

To learn more about degree offerings in the Sport Management and Sport and Recreation Studies programs within the School of Sport, Recreation, and Tourism Management (SRTM) at George Mason University, please visit the program websites.