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Cultural Olympiad Presentation

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Laura Davy

on 17 January 2013

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Transcript of Cultural Olympiad Presentation

Used 50% ‘special financing means’ - OCOG revenue sources requiring government approval - sale of Olympic Coins/ Olympic Lottery).
OCOG generated funds such ticket sales (19%) and 31% from federal government. 1920 Antwerp
Corporate advertising used.

1928 Amsterdam Coca cola began

1964 Tokyo (250 companies) ‘Olympia’ Cigarette brand made US$1 million.

1984 LA Sponsorship programme defined; 3 categories.

1988 Top Programme, OCOG’s have to become
part of a joint marketing programme.

1996 Atlanta sponsorship
agreements signed for
12 years.
& repositioning of
destination Olympic Games No. of Partners Revenue (million)

1996 Atlanta 111 US$426

2000 Sydney 93 US$492

2004 Athens 38 US$302

2008 Beijing 51 US$1,218 By Laura Davy 09320318 The Olympic Movement Overview Historical Development
Changing role of the Games
Economics and the Modern Games
Economic impacts of the Olympic Games Movement
The Economic Legacies Phase I 1896-1968 Role of the
Ancient Games Honour - Being the best. Education – Athletics & Academics.
Religion – worship of gods & heroes.
Greek Calendar – four year cycle of the Olympiad,
Peace – sacred truce.
Culture, tradition & unity – bond between Greeks. Role of the Modern Games Changing Role of Modern Games Timeline of Development Preuss. H (2004) Games held encountered many financial problems as there was not a set stable source of finance.
Athens 1896, Greek state was declared bankrupt & Games was financed by wealthy Greeks from overseas.
First 5 games had finance problems - De Cobertin set out to find a stable source of finance for the games. Phase II
1969-1980 Public financed games
Growth mean secure sources finance needed.
Sale of broadcasting rights and sponsorship = source of income. Munich 1972 Phase III
1981-1996 Increasing importance of private financing.
Opening the games to professionals.
Development of global markets and corporations.
Increasing audience size. Mixed financing
Long-term relationships between TV networks and IOC
Avoid over-commercialism.
Sponsors use the Olympic Ideals for commercial purposes without distorting them. Phase IV
1997-2012 Sponsorship Billions of people in over 200 countries.
Accounts for more than 40% of Olympic revenues.
Various sources of unstable private finance to public funding to secure private finance
1984-1988 for an established sponsorship programme to be enforced by the IOC,
IOC control negotiations with TOP sponsors and TV networks, 40% of funding is already in place for the next host city.
Services and products for athletes to technical support and products.
Used as models for other large sporting events. (IOC, 2012) Marketing 1980s – Games used to access markets through a single channel,
Before 1984 - National Olympic Committees did not receive much revenue from marketing.
1985 – IOC began the The Olympic Partner (TOP) Programme, Promoting the ‘Olympic Brand’. Reducing the number of sponsors but increasing total amount.
'Has turned into a media spectacle instead of a prestigious event (30 years ago countries were actually interested'. (Berman, 2012) Technology & Broadcasting Development leading to the creation of broadcasting rights.
1948 London – first broadcast rights fee, London & surrounding area
1964 Tokyo – satellites for instant
1968 (Winter) France - live on colour television.
1970s – Audience for the games growing, more TV networks competition and price of rights grew.
1990s – Generated 68% of total revenues for the Olympic Movement,
2001 – Olympics Broadcast Service permanent host broadcaster for the Olympic Games.
2008 - 220 Countries
Broadcasting 1960 Rome $1.2
1964 Tokyo $1.6
1968 Mexico City $9.8
1972 Munich $17.8
1976 Montreal $34.9
1980 Moscow $88
1984 Los Angeles $286.9
1988 Seoul $402.6
1992 Barcelona $636.1
1996 Atlanta $898.3
2000 Sydney $1,331.6
2004 Athens $1,494
2008 Beijing $1,739 (IOC, 2012) (IOC, 2012) (IOC, 2012) (IOC, 2012) 1956 Melbourne growth in air travel.
1952 Helsinki Olympic coin tradition beginning of merchandising.
2000 Sydney first online retailing of merchandise. Other Developments LEGACY - The lasting impact a games can leave on a host nation,
- Positive or negative, direct or indirect. Job Creation &
Wealth Distribution Economic
Growth Positive
Economic Impacts (Dwyer et al 2006) Barcelona 1992
Development of facilities and infrastructure provided est. 20,000 people with jobs. Arising from Olympic investments (a legacy of 956,000 million pesetas in company
capital). (Brunet. F, 2005) (Sands. L 2009) Beijing 2008The Beijing Statistical Bureau estimates that spending on the Olympics has added 2.5 percent annually to Beijing's overall economic growth since 2002. Sydney 2000
$203 million spending on business events since the end of the games (Price Waterhouse
Coopers, 2001) (Harvey, 1989) Exposure on a business level LA 1984
Games was said to have ‘transformed the economic calculus associated with the Olympic Games, making being a host city once again an attractive – indeed, much sought-after proposition’ (Whitson, 2005) Leveraging
for tourism
International recognition.
Promoting the city as a future tourist destination.
Expansions of visitor economy. Barcelona 1992 (Law 1996) 1986-2000, the number of visitors from abroad to the city doubled, reaching a total of 3.5 million visitors per year. (Brunet. F, 2005) Sydney 2000 Inbound tourism spending 2001 AUD $6 billion+. (Price Waterhouse Coopers, 2001) Promote
trade & closer business connections between destinations Potential to transport some London 2012 Venues to Rio 2016. (Dwyer et al 2010) Post-event Investment Sydney 2000
$600 million business investment (Price Waterhouse Coopers. 2001) GDP, Income and wellbeing increase 0.245% Increase in GDP 6 years prior to the games. Lillehammer 1994 0.102% Increase in GDP 6 years prior to the games. Sydney 2000 (International Monetary fund, 2000) Public/Private Partnership –
co-operation to reach mutual development goals. 36.8% of the Olympic building work was promoted by the private sector working along side the govenment, (Brunet. F, 2005) Barcelona 2002 Inappropriate development become a drain on resources & capital. Negative Economic Impacts (Dwyer , 2010) 9/11 - Cost of security increased 2004 Athens Olympic games, security measures cost US$1.5 Billion (Matheson 2006) (Baade & Matheson,
Maintaining the sites costs up to 100million euros a year. Athens 2004 (The Economist, 2010) Other areas of
industry affected Beijing 2008
Pressures to make a sustainable games meant they had to improve air quality lead to a loss in revenue in the manufacturing industry from 776 BC from 1896 Foster the ideal -
“sound mind in a sound body”

Pierre De Coubertin
"Education of Peace"
Help build a better world - peace, understanding & excellence.
Friendship & respect.
Competition – celebrate the athletic abilities.
Sport - link back to culture and education.
Practice of sport - joy found in effort. International cooperation
Growth - more sports, more athletes, Winter Games.
Inclusion - participation of women.
Competition of hosts
Political motives
Promote development
Economic reasons (Greek philosopher Thales) The greater the public investment, the greater the private investment which will follow, and the greater the legacy, the additional activity and employment generated. Public return will also rise in line with increased investment and activity. (Brunet. F, 2004) “The transformation of the IOC from the instrument of peace and good will envisioned by its founder, Baron Pierre de Coubertin, to a transnational non-governmental commercial giant of imposing power and influence in global sporting matters” (Barney, et al, 2002) Many jobs are low paid & temporary (Hiller, 2000) Barcelona 2002
21,000 became unemployed post games (Miguelez & Carrasquer,
1995) 'Short-
termism' (Kang and Perdue, 1994) (Hall and Hodges, 1998) Inflation . London 2012‘
Locallised injection of cash to London have short term benefits while rest of UK predicted to have a reduced economic income. (Blake, 2005) Prices of land, housing and overall living
Sydney 2000
1998 house prices rose 7%, compared to the
usual 2% (Horin, 1998) Tarnished
brand and reduced destination pride due to problems at the event (Jago et al 2003, Coates & Matheson) Bombings in centennial park and transport difficulties negatively showcased by the media, change potential tourist perspectives. Atlanta 1996 Terrorism
having costs
for future games (Locate in Kent, 2009) In Conclusion... Ancient Games - mainly social, political
Modern Games - Socio-economic
Continuing economic developments since 1896.
IOC have taken control of major financing sources.
Growth in broadcasting, commercialism & sponsorship revenue
Decrease in number of sponsors
Increasingly attractive to host cities
Accelerate & initiate change.
Promote investment & development.
Gigantism seen as a problem
No. of athletes & events, limited
Ticket sales & media attendance have not. (IOC, 2001) Impacts
Positive & negative legacies
From different perspectives
On different groups of population
On different geographic locations
Predictions can be over optimistic
Unknown impacts without the Games
Data can be manipulated References
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The Economist. (2010) Britain: Show’s Over; Olympic Legacies. Business and Economics – Economic Systems and Theories, Vol. 396 (10), P 57. THE END Thanks for listening - any questions? from an Economic perspective Reflected on the past & categorised the events into 4 phases & milestones in the economic history of the Olympic Games (Georgiadis, 2000) (Scherer, 2011) AKA MULTIPLIER
EFFECT (Houlihan. B, 2008, P412)
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