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MISSED OPPORTUNITY: Chicago’s loss promises to leave both the city and the sports industry with a hangover. SportsCorp President Marc Ganis, who is based in Chicago, said, “I’m concerned the city is going to have a major hangover because expectations have been raised so high. It will manifest itself in people being down and depressed, optimism waning and government and business not having any great events to look forward to.” Rio expects to generate $2.8B in revenue, which includes $570M in domestic sponsorships. The sponsorship figure is half as much as Chicago expected to generate. Chicago’s bid team expected the Olympics to generate $3.8B in domestic revenue, including $1.2B in sponsorships. All of the sponsorship revenue offered an opportunity for sales and consulting agencies to provide corporate partners with sponsorship analysis and activation planning. But those opportunities will never come to fruition. As a developing country, Brazil still represents an intriguing sponsorship opportunity for global corporations. Helios Partner Chris Welton said, “Brazil is a growing economy and sponsors want to go places where they can grow their business. You’re not going to get a whole lot of money out of Brazilian companies, like in Russia (for Sochi) and China (for Beijing), which leaves you with a lot of opportunity for non-Brazilian companies that want to grow their business there.” Former USOC President Harvey Schiller said, "From some of the action in these past months, it's clear the IOC is showing more direction than they have in the past. It was clear to everyone that it was for Rio."
FOR TELEVISION: The selection of Rio was the second-best option for the IOC on the TV front. The city is one hour ahead of the East Coast, which will allow broadcasters to air many of the marquee events, like swimming and track and field, in primetime. The IOC is expected to go to market with the U.S. television rights to the '14 and '16 Olympics within the next year. NBC is paying $2.1B for the rights to the '10 and '12 Olympics, and U.S. television rights currently account for half of all IOC revenue. Rio offers the IOC a chance to increase those rights in the next quadrennium. 21 Marketing founder Rob Prazmark said, “Everyone is worried about the next negotiations, but for television Rio’s almost as good as Chicago. You’re selling for U.S. television a great time zone.” Neal Pilson, president of Pilson Communications, said, “Rio’s an attractive location. It probably will be a costly Olympics because you have to bring a lot of equipment with you, but the time difference is very attractive to U.S. television.”
Baird Faces Tall Task Of Selling
Sponsors On Another Non-U.S. Games
Lula's Passion Deemed
Critical In IOC Presentation
A CASE FOR SOUTH AMERICA: Rio in its presentation continued to stress that it presents the IOC an opportunity to "make history by bringing the Olympics to a continent that has never hosted them before." Rio dared IOC members "to be bold and to open their movement" to South America. Brazil President Luiz Inacio Lula da Silva: "The opportunity now is to expand the games to new continents. Light the cauldron in a tropical country, in the most beautiful of cities." Rio 2016 Chair Carlos Arthur Nuzman insisted that Rio is an "emerging economy that has helped redraw the world's economic map" (WSJ.com, 10/2). The Rio bid "also tried to dispel worries about crime." Rio Gov. Sergio Cabral: "We know that some of you have questions about security. Changes have been made, happily as a result of sport" (NYTIMES.com, 10/2). Lula said, "I honestly believe that it is Brazil's time. Among the top 10 economies in the world Brazil is the only country that has not hosted the Olympics. ... Rio is ready, give us the chance and you will not regret it." In London, Paul Kelso in a live blog wrote, "It's stirring stuff, the equal of [President] Obama's set-piece earlier." Rio delivered "exactly what the members were expecting and made a powerful case" (TELEGRAPH.co.uk, 10/2). In Manchester, Burnton & Ronay in a live blog wrote, "Lula is nailing it. He's pushing all the buttons about the inclusivity of the Olympic movement and sending a message to the world. The logic is overwhelming. ... Exit to what sounds like much louder applause than either of the Obamas got. Really well done, that. Lula did the job" (GUARDIAN.co.uk, 10/2).
MADRID'S PRESENTATION: In N.Y., Juliet Macur noted Madrid, the last presentation, "focused on the mantra, 'Sport makes us equal. It makes us better,' and emphasized that Madrid enjoys more support among its residents than competing cities." Spain Prime Minister José Luis Rodríguez Zapatero said, "Our candidacy is reliable because it is united politically and united with the feelings of the population and because it has shown that it could learn and improve." Former IOC President Juan Antonio Samaranch during the presentation "went as far as asking the IOC members for a personal favor when he addressed the crowded room." Samaranch: "I’m very near the end of my time, I’m 89 years old. I ask you to consider granting my country the honor and also the duty to organize the Games and Paralympic Games in 2016" (NYTIMES.com, 10/2). REUTERS' Kevin Fylan wrote Samaranch "made an emotional appeal to the hearts" of IOC members (REUTERS, 10/2). AROUND THE RINGS' Mark Bisson noted Spain King Juan Carlos "produced what could be a game-changing performance for Madrid," delivering a "fiercely emotional plea to IOC members." The city's bid "gathered momentum and ended with a flourish" (AROUNDTHERINGS.com, 10/2). The TELEGRAPH's Kelso wrote, "Madrid is clearly pitching to be the no-risk option, hoping to inherit the 2016 Games after Rio and Chicago kick each other to death" (TELEGRAPH.co.uk, 10/2). The GUARDIAN's Burnton & Ronay wrote, "Maybe they'll get the 2020 games, eh, because they've got a bogglingly small chance of getting this one" (GUARDIAN.co.uk, 10/2).
Hatoyama Touted Environment
Benefit Of Tokyo Games
Obamas Delivered The Excitement, But
Rest Of Chicago Bid Deemed Flat