Nothing on earth can bring humanity together than the Olympic Games. It also applies that nothing can bring global business together than the quadrennial meet. Last weekend, the mountain city of Turin, host to Italy's industrial revolution and the holiest relic in Roman Catholicism, became host to more than 2,000 athletes from some 88 participating nations. The twentieth edition of the Olympic Winter Games, like other Winter and Summer Olympiads, also brought in a host of businesses. These companies collaborate with the local government of the host city with guidance from the International Olympic Committee to ensure a successful staging of the sports meet. How does funding funnel in? The topic of funding starts with a tedious selection process that happens a year after the closing of a previous Olympic Games. Take for example the selection process for Turin and London which will host the thirty-first edition of the Summer Olympiad in 2012. All cities wishing to host the games must submit their proposal that describes the funding to be allotted for hosting. To take a cue from London's winning bid, it proposed the construction of several sports venues plus the refurbishing of existing infrastructure to accommodate the daily influx of athletes and tourists. Their bid swelled to $15 billion. It was estimated that Turin spent some $9 billion dollars to successfully host the Games. It is expected that that figure will rise when Vancouver in British Columbia will host the twenty-first edition of the Winter Olympiad in 2010. The money used for the bidding came from both the city government (it sometimes involves the federal or national government) and businessmen who are cashing in for free exposure. One might ask what business got to do with the Olympic Games. Well, every Olympiad brings together an estimated five billion people from all over the globe through television, radio, print, and the Internet. If one company chooses to advertise its product in the uniform of athletes, that is international publicity. Aside from this unconscious method of marketing, there are tie-ups between broadcasters and companies. This is more evident in the onslaught of products continuously aired during commercials at a timeslot earmarked for the coverage of an Olympic sport. It is also noticeable how products are plastered on venues. Can the host city expect a quick return of investment? Not all the time, as in the case of Sydney, Australia in 2000. A higher rate of return can be expected from the sale of tickets to the venue plus the influx of tourists who will visit the host city after the Games are completed. |
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