Olympic marketing

In the early 1980s, the Olympics were on the verge of bankruptcy when the IOC drafted a team to help market the event and the organization.[17] In 1998, one of the members of that team, Michael Payne, became the first marketing director of the IOC.[17][18] During his 20 years with the IOC,[17] Payne created a multi-billion dollar marketing program for the organization which turned the Games around financially.[19][20][21] [edit]Revenue The Olympic Movement generates revenue through five major programs. The International Olympic Committee (IOC) manages broadcast partnerships and the The Olympic Partner (TOP) worldwide sponsorship program. The Organizing Committees for the Olympic Games (OCOGs) manage domestic sponsorship, ticketing and licensing programs within the host country under the direction of the IOC. The Olympic Movement generated a total of more than US$4 billion, 2.5 billion in revenue during the Olympic quadrennium from 2001 to 2004. [edit]Revenue distribution The IOC distributes some of Olympic marketing revenue to organizations throughout the Olympic Movement to support the staging of the Olympic Games and to promote the worldwide development of sport. The IOC retains approximately 8% of Olympic marketing revenue for the operational and administrative costs of governing the Olympic Movement.[citation needed] [edit]The Organizing Committees of the Olympic Games (OCOGs) The IOC provides The Olympic Partner (TOP) program contributions and Olympic broadcast revenue to the OCOGs to support the staging of the Olympic Games and Olympic Winter Games: TOP Program Revenue to OCOGs; the two OCOGs of each Olympic quadrennium generally share approximately 50% of TOP program revenue and value-in-kind contributions, with approximately 30% provided to the summer OCOG and 20% provided to the winter OCOG. Broadcast Revenue to OCOGs; the IOC contributes 49% of the Olympic broadcast revenue for each Games to the OCOG. During the 20012004 Olympic quadrennium, the Salt Lake 2002 Organizing Committee received US$443 million, 395 million in b oadcast revenue from the IOC, and the Athens 2004 Organizing Committee received US$732 million, 690 million. Domestic Program Revenue to OCOGs; the OCOGs generate substantial revenue from the domestic marketing programs that they manage within the host country, including domestic sponsorship, ticketing and licensing. [edit]National Olympic Committees (NOCs) Further information: National Olympic Committee The NOCs receive financial support for the training and development of Olympic teams, Olympic athletes and Olympic hopefuls. The IOC distributes TOP program revenue to each of the NOCs throughout the world. The IOC also contributes Olympic broadcast revenue to Olympic Solidarity, an IOC organization that provides financial support to NOCs with the greatest need. The continued success of the TOP program and Olympic broadcast agreements has enabled the IOC to provide increased support for the NOCs with each Olympic quadrennium. The IOC provided approximately US$318.5 million to NOCs for the 20012004 quadrennium. [edit]International Olympic Sports Federations (IFs) The IOC is now the largest single revenue source for the majority of IFs, with its contributions of Olympic broadcast revenue that assist the IFs in the development of their respective sports worldwide. The IOC provides financial support from Olympic broadcast revenue to the 28 IFs of Olympic summer sports and the seven IFs of Olympic winter sports after the completion of the Olympic Games and the Olympic Winter Games, respectively. The continually increasing value of Olympic broadcast partnership has enabled the IOC to deliver substantially increased financial support to the IFs with each successive Games. The seven winter sports IFs shared US$85.8 million, 75 million in Salt Lake 2002 broadcast revenue. The contribution to the 28 summer sports IFs from Athens 2004 broadcast revenue has not yet been determined, but the contribution is expected to mark a significant increase over the US$190 million, 150 million that the IOC provided to the summer IFs following Sydney 2000.