Olympic Sales Strategy

The International Olympic Committee (IOC) revamped its sales strategy by “ending a decades-old practice of selling TV rights to broadcasting unions, which traditionally covered large regions of continents” (Mickle, 2012).  In the past the U.S. broadcast money had played a large part in filling the IOC’s “coffers” (Mickle, 2012).  For the first time Olympic T.V. rights revenue from the U.S. will fall below 50 percent of “the IOC television money during the next quadrennium” (Mickle, 2012).

The new sales strategy shift has secured over $3.7 billion for the 2014 and 2016 Games globally, $2 billion “of which came from NBC’s deal signed last summer” (Mickle, 2012).  Back in 2009, “Brazillian broadcasters reportedly paid $8 million to $9 million for Olympic TV rights as part of a Latin American broadcasting union called OTI” (Mickle, 2012).  Since the separation from the Broadcasting Unions the IOC began selling the media rights to three media companies.  The deal is worth over $170 million, which is an incredible increase since splitting from the Broadcasting Unions.

“With the 2016 Games in Rio being billed as the first Latin American Olympics, the IOC Managing Director of TV and Marketing Services, is particularly optimistic that the organization will be able to increase TV rights revenue in Latin America, where it still has rights to sell in Mexico” (Mickle, 2012).  In the past the IOC has sold to the area by using the Broadcasting Union OTI and ESPN.  The new strategy will have the IOC looking to selling individual rights to countries such as Peru, Chile and other neighboring markets to increase revenue.

With a quick review of the numbers it is easy to see that the IOC made a wise decision by changing its selling strategy. In the Brazilian market alone the increase is absolutely incredible.   As the IOC reaches out to the different markets for the selling of the media rights, it will be interesting to see what the final number is by the 2016 Olympic Games in Rio.  Another interesting factor to think about will be the status of the Olympic athletes union.  Will one be in place by 2016?  Will rule 40 (the sponsorship rule) be eliminated? And finally, will the athlete’s be receiving a portion of this financial increase?

Mickle, T. (2012). Sales strategy helps ioc boost rights fees. Street & Smith's Sports Business Journal, 15(16), 1,31.

An Olympic Experience A Child Will Sure Remember

After only four years of discussions with the International Olympic Committee, McDonalds was granted rare Olympic access.  Approximately 200 children were given the opportunity to attend the 2012 London games.  The children were granted access that took them behind the scenes.  They were given the opportunity to try archery at Lord’s Cricket Grounds and play beach volleyball at Horse Guards Parade.  The US archery team even let them hold their freshly won silver medals.

Back in 2008 McDonald’s began asking the IOC if it could provide a unique Olympic experience for kids.  “It was modeled after an activation the company had used successfully during its sponsorship of the FIFA World Cup” (Mickle, 2012).  For the 2008 Olympic games in Beijing, McDonalds had brought a few hundred children to the games.  They were able to tour the great wall of china and many other tourist spots, but they were never given the opportunity to set foot on the field where the games were held or meet the Olympic athletes.  After Beijing McDonald’s looked to improve this experience for children and make it more of an Olympic experience and less of a tourist experience. 

As McDonald’s worked out the logistics with the IOC, London’s Olympic Committee worked with McDonald’s to ensure that McDonald’s was granted access.  Each child was able to bring one parent to the “Champions of Play” (Mickle, 2012) program.  The selection process involved the child writing an essay about “teamwork or overcoming a challenge in sports” (Mickle, 2012). Their visit to London would last three days.  They were granted access to walk on the swim deck at the aquatics center, try their hand at archery, beach volleyball and meet Olympians like Swimmer Dara Torres, speedskater Joey Cheek, canoer Antonio Rossi –“giving each child a medal” (Mickle, 2012). In the end the program was a true success.  But McDonald’s has already begun to look at ways to improve this Olympic experience for both Sochi and Rio.

Mickle, T. (2012). Mcdonald's gets kids in the games. Street & Smith's Sports Business Journal, 15(16), 1, 33.