issue May 2000 May 16 1 Olympic Notes Olympic in Sydney Strategy • Olympic Internet Internet • Olympic • OTAB on-line launch • Anti-Ambush Efforts • ATHOC Update matters The IOC and TOP Partners have attributed have Partners TOP The IOC and that IOC 1999 to ensure December the ethics and ideals of the operations reflect Movement Olympic worldwide public support for the increasing sponsors and Olympic Games Olympic the was not affected by Image the Olympic crisis of 1998 – 1999 Olympic — Richard W. Pound, IOC Pound, President W. Vice — First Richard • The Coca-Cola Company • Company The Eastman Kodak • Hancock John • Inc. Illustrated/Time Sports • International Visa • Xerox • Group The Sema Launched • established in reforms the IOC institutional • that illustrates the research global market • that indicates that research global market the success of TOP to: TOP the success of “The IOC is very pleased that ongoing been made so early and commitments have to make the will do everything in its power association beneficial to sponsors and the as a whole. Olympic Movement Olympic sponsorship is unique in many ways and helps their the world to realise athletes throughout to training in their countries from dreams, sportparticipating of our event in the greatest — the largest Games time — the Olympic people the world peaceful gathering of young seen.” has ever The following Partners have signed have Partners The following TOP to participate in agreements V: Facts to Announcements “Celebrate Humanity” • Promotional Campaign • Promotional Reactions Positive • Strong MARKETING MARKETING Success All TOP V All TOP Record Financial Record Facts Forecast Sydney 2000 Enjoys 2000 Sydney • SOCOG Financial Broadcast • Sydney Positive • Sponsors ROGRAMME ON Target:

in this issue for TOP V Future than Ever Stronger TOP on Programme • High Renewal Rate Renewal • High TOP• for the Partners Image • Olympic TOP V negotiations are keeping a record- keeping a V negotiations are TOP The Olympic Partnership programme Partnership The Olympic recently corporations have Several V is on course for an unprecedented TOP

agreements are targeted for signature before targeted for signature are agreements 2000 — and this will the staging of Sydney marketing the first time in Olympic mark history that the IOC will complete the prior to the staging of sponsorship programme Games. the previous setting schedule for completion. (TOP) remains on a highly successful course remains (TOP) as the international business for the future, its supportcommunity renews for the and the Games. Movement Olympic announced support for the Olympic with participation in the fifth Movement generation of the IOC worldwide sponsorship which covers V, TOP as known programme, 2001 – 2004. quadrennium the Olympic date, the IOC To rate. sponsorship renewal corporations to terms with seven has agreed of the seven Six V sponsorships. TOP for of current renewals are agreements of the agreements sponsorships, and three VI (2005 – 2008). TOP extend through IOC and Several Worldwide Olympic Sponsors Renew Partnerships for Future Games ARGET T TOP P Published by the International Olympic Committee - Lausanne, Switzerland Olympic the International by Published

The Olympic Marketing Newsletter Marketing The Olympic OLYMPIC

olympic marketing matters olympic marketing matters matters marketing olympic 16issue May 2000 olympic marketing matters

Negotiations continue with other current TOP reasons for [Olympic sponsorship] success in the Partners. wake of the scandal are also simple. There was a problem, and everyone in the governance of that “A TOP Partner’s decision to renew is not simply problem took it very seriously. The partners saw a matter of being pleased with the investment to- that, and they came back. They came back date — it’s about the ability to align the because, for most, the Olympic Movement is sponsorship with future business plans.The TOP now part of the very fabric of their corporate programme is based on a principle of exclusivity cultures.” within a specific business area, and today each Partner is growing its business by pushing new — Mark Dowley, President, products and services into expanding markets. Marketing Communications Group of The IOC is achieving a high renewal rate by Companies, McCann Erickson World Group working closely with the current TOP Partners to align their sponsorships with their business goals for the future. We’re happy to have signed on so “The Olympic image problems are fixed. Why many of our current Partners.” else would these blue-chip companies all be jumping back on board?” — Michael Payne, IOC Marketing Director, — David Carter, Principal, Sports Business Reactions to the high renewal rate of TOP V Group

“I believe that our sponsors understand that the IOC took the crisis very seriously, that it acted “It’s a very significant day for the Olympics in quickly to address the governance issues and terms of sponsorship. Getting a major company went far beyond merely solving the crisis — like John Hancock back into the fold offers putting in place a more open and modern tremendous credibility to the IOC.” organization reflecting best practices. This, together with the global marketing strategy — Bob Williams, Burns Sports (Chicago), on the developed by the IOC to add more value to signing of John Hancock to the TOP V Olympic sponsorship, has generated increased programme. confidence among the sponsor group regarding their Olympic investment.” “It’s really back to business as usual. The — Richard W. Pound, IOC First Vice President Olympics are just way too valuable for companies, and the core idea of what the “The overall strength of the Olympic Olympics are about and what the companies are [sponsorship] programme is two-fold in my buying has not been damaged. If the problems mind. First you have the world’s greatest and were focused on the athletes…or something that most ubiquitous event. There is not a rational directly affected the competition, that might person on our planet that cannot identify with have made a difference.” the Olympic Games and what it stands for. The Olympic Games is the celebration of what life is — Robert Madrigal, Professor, the Warsaw truly supposed to be about — a celebration of Sports Marketing Center, University of Oregon humanity. There is not a company in the world that does not want to identify its very character and products in that light. The second and much “It would take something a lot more scandalous more pedestrian reason is the protection for the Games to be significantly tarnished for an provided by the IOC and the NOCs in terms of advertiser.” exclusivity for their sponsors. It is truly a well- managed partnership.” — Bob Dorfman, Executive Creative Director, Pickett Advertising (San Francisco) “The real value [of Olympic sponsorship] is simple — the values of the Movement and its celebration of all that is good about the human race is what is enticing to partners…. The

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2 olympic marketing matters issue May 2000 May 16 3 The clause TOP V TOP tium orals Clause to Contracts HANGES FOR e-establish IT Consor C dds a M to R A EY — David F. D’Alessandro, CEO, John Hancock Hancock CEO, John D’Alessandro, F. — David vital IT which provided The SEMA Group, The consortiuminclude a number of will not to renew 1998 the IOC and IBM agreed In — Richard W. Pound, IOC Pound, W. President Vice — Richard First IOC the IOC 2001 onward, From a will employ consortium of information technology (IT) efficient and cost effective partners to provide Olympic solutions for the staging of future that had been a concept — re-establishing Games in place up to and including the 1992 Olympic in Barcelona. Games TOP will participate in the support in Barcelona, of the IT as the lead Partner programme 2008. consortium 2001 through from systems integration, providing Partners, support, and routers Internet software, hardware, cabling. their partnership 2000. IBM will beyond and Movement the Olympic continue to provide with IT support the Games through the Olympic Games. Olympic 2000 Sydney K IOC and the IOC commitment to reform reinforce To IOC sponsors, the to Olympic has included a future. for the agreements TOP morals clause in to the Olympic a response The morals clause is in late 1998. crisis that came to light “The in contracts with inclusion of morals clauses the way the sponsors does not change, in any way, it is without the clause, but IOC would act even in all evidence of our intention to act ethically do.” aspects of what we the IOC in the the kind of clause that forces “It’s is a real attention if there end to pay real also designed so that a sponsor It’s problem.... walk away on a whim.” can’t illustrates that the IOC acknowledges the need acknowledges illustrates that the IOC the structural that led to the problems to correct committed to protecting crisis and is Olympic such events. of a recurrence sponsors from COJO 50% tners ate ar P OP 10% OP V to D T 20% CIO T istribution 20% OP es of T enue D w of USOC ev bjectiv Fact Sheet vie CNO er the Olympic Movement Movement the Olympic continuing and substantial support Family the Olympic throughout announced for TOP V. V. TOP announced for will be announced shortly. companies OP R The IOC distributes TOP revenue throughout revenue TOP The IOC distributes The basic formula for Family. the Olympic in the percentages distribution follows revenue than 50 more the chart. receive OCOGs may sponsor technology percent due to increased operations. Games support for Olympic T TOP Partners provide valuable financial resources financial valuable provide Partners TOP as vital technical as well Family to the Olympic support for the OCOGs and the general This Movement. operations of the Olympic in the form of products, support is provided services, technical expertise, and staff products, deployment. • the independent financial stability of ensure To • that ensure long-term programmes create To • distribution equitable revenue provide To Contributions of • (2001 – 2004) V: TOP for Term • been been signed and 7 have have 8 agreements • sponsorships. current renewed have 6 Partners •V. TOP has joined 1 new Partner •VI (2004 – 2008). TOP through 3 agreements • in the final stages and are agreements 2 renewal • with other The IOC is conducting negotiations The O The TOP Programme was founded by the IOC in the IOC founded by was Programme TOP The for entering its fifth generation is now 1985 and TOP the period 2001 – 2004. exclusive provides Winter sponsorship opportunities of the Olympic 199 National all Games, the Olympic Games, (NOCs) and their Committees Olympic teams, and the IOC. Olympic Ov TOP olympic marketing matters matters marketing olympic 16issue May 2000 olympic marketing matters TOP Partners for the Future The following Partners have announced their participation in the TOP V programme.

Exclusive Product or Service Category: www.cocacola.com Non-Alcoholic Beverages Supporting the Olympic Movement: In 1928 Coca-Cola was a sponsor of the Amsterdam Olympic Games — and been involved with every Olympic Games since. Coca-Cola became a charter member of the TOP programme in 1986. Future participation: TOP V and TOP VI (2001 – 2008) Vice President, Coca-Cola Marketing & Director, Worldwide Sports: Manager, Global Sports Communications: Mr. Scott McCune: (U.S.) + 404 676 8176 Mr. Scott Jacobsen: (U.S.) + 404 676 7059

“People in every corner of the globe care passionately about and believe in the Olympic Games and the ideals they represent. The Coca- Cola Company has long recognised the ability of the Games to transcend national boundaries, to bring people together and to celebrate all that is good in humanity. We feel it is important to be part of such a powerful Movement. The opportunity to associate our brands with the core values and the powerful and relevant imagery associated with the Olympics in the nearly 200 countries in which we operate remains the focal point of our association with the Games.”

“The Coca-Cola Company is pleased with the reforms enacted by the IOC last December. We believe there is a serious effort underway to bring about real reform, and we commend the IOC for working to protect not only our business interests as a sponsor, but the interests of the millions of people around the world who are passionate about the Games — which is the basis for Coca-Cola’s continuing commitment to the Olympic Movement.” — Scott McCune, vice president, Coca-Cola Marketing and Director, Worldwide Sports

Exclusive Product or Service Category: www.jhancock.com Life Insurance/Annuities Supporting the Olympic Movement: In 1993 John Hancock became a sponsor of the United States Olympic Committee. In 1994 John Hancock joined the TOP programme as a member of TOP III. Future participation: TOP V (2001 – 2004) Vice President, Corporate Communications Manager, Sports Marketing, Public Relations Mr. Steve Burgay: (U.S.) + 617 572 6507 Ms. Becky Collet: (U.S.) + 617 572 6435

“We made no secret of the fact that in order for the IOC to regain our confidence as well as that of the public, it had to become a more democratic, transparent and accountable institution. We believe that with its reform vote in December, the IOC has addressed these issues. Its members listened to voices for change from inside and outside the organization. The IOC leadership deserves credit for this progress.” — David F. D’Alessandro, CEO, John Hancock

“At John Hancock we believe that the Olympic Games are the one event that allows the world to see so much patriotism, tolerance, self sacrifice, individual excellence, and plain old virtue crowded into two short weeks…. The Olympic Games provide a unique international marketing platform. John Hancock’s Olympic marketing programmes, which include matching internationally renowned athletes with hometown clinics, help to strengthen existing client relationships and help give Hancock an edge in new client prospecting.” — Steve Burgay, Vice President of Corporate Communications, John Hancock

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4 olympic marketing matters issue May 2000 May 16 ng to que e of The elped mes a 5 dopted result in result t, athletic Exclusive Product or Service Category: Product Exclusive Exclusive Product or Service Category: Product Exclusive or Service Category: Product Exclusive — Michael T. Sherman, Vice President, Global Corporate Relations, Visa Visa Relations, Corporate Global President, Vice Sherman, T. — Michael — Malcolm Williamson, President and CEO, Visa Visa and CEO, President Williamson, — Malcolm ¨ — Carl Gustin, Senior Vice President and Chief Marketing Officer, Eastman Kodak Company Kodak Eastman Officer, Chief Marketing and President Vice Senior Gustin, — Carl olympic marketing matters matters marketing olympic “The renewal of Visa’s sponsorship of the Olympic Games for the next four years is a sound business decision that will continue four years for the next Games sponsorship of the Olympic Visa’s “The of renewal and a painstakingly created that were been undertaken the IOC, reforms “Visa that have by initiatives fully supports the reform Scot Smythe: (U.S.) + 650 432 3398Scot Smythe: with them in offeri other sponsorship opportunity compares that transcend sport. a global event “The truly No Games are Olympic with global appeal.” audience, and a wide range of events broad-based a combination of international exposure, (U.S.) + 650 432 3923 Sherman: Mike This uni their business both locally and globally. tool to grow effective our member financial institutions with a most provide rang and partnerships a broad co-promotions worldwide opportunities across to create and advertising platform affords marketing business needs.” industries in support of our Members’ our sponsorship. in our decision to renew a large role played steps obviously These positive under very close public scrutiny. practices and will closely parallel accepted global business to more them the IOC has instituted will allow operational reforms the celebration of worldwide athletic Spirit, committed to the Olympic remains Visa open and efficient organization. a more represent.” Games the Olympic and the hopes and aspirations that achievement, Future participation: Future V (2001 – 2004) TOP Marketing: Event President, Vice Communications Corporate President, Vice www.visa.com Movement: the Olympic Supporting programme. TOP became a charter member of the Visa 1986 In Systems Payment Consumer TOP V (2001 – 2004) TOP Director:Olympic Cashen: (U.S.) + 212 522 2482Ms. Blaise Assad: (U.S.) + 212 522 6905 Joe Mr. Relations: of Public Director In 1980 Sports Illustrated served as an official sponsor of the Olympic Winter Games in Lake Placid. In 1987 Sports In in Lake Placid. Games Winter served Illustrated as an official sponsor of the Olympic 1980 Sports In TOP became a charter member of the Illustrated/Time programme. participation: Future www.cnnsi.com Movement: the Olympic Supporting Publications competition and international unity. In addition to providing products, services, technology, and personnel to help make the Ga and personnel to help make the services, products, technology, providing addition to In unity. competition and international h Those images, in turn, have some of the most enduring images of the Games. also helped capture have products Kodak’s reality, the world.” around communicate the spirit of the Olympics Director, Corporate Partnerships: Corporate Director, + 770 522 2816 (U.S.) Rivera: Manuel Mr. the last centuryspiri the goal of supporting furthered the Olympic really plus has over with the Olympics role our believe “We (U.S.) + 716 724 4513 Charlie Smith: Mr. Relations: Media Corporate Director, Future participation: Future VI (2001 – 2008) TOP V and TOP Supporting the Olympic Movement: Movement: the Olympic Supporting At in Athens. Games of the first modern Olympic Results placed an advertisement in the Book of Official 1896 Kodak In became a charter member photographers. Kodak first supplied film to professional Kodak Games, Olympic the 1924 Paris TOPof the in 1986. programme www.kodak.com and Imaging Film/Photographics www.panasonic.co.jp or Service Category: Product Exclusive Equipment Audio/TV/Video Project Olympic Manager, (Japan) + 81 6 949 2029 Itani: Ned www.samsung.com or Service Category: Product Exclusive Communications Equipment Wireless Group Samsung Director, Executive + 82 2 751 2114 Kim: (Korea) Hoi Nack Manager: Relations Public + 82 2 727 7863 J.H. Kim: (Korea) Jay Exclusive Product or Service Category: Product Exclusive or Service Category: Product Exclusive Partner Contacts IV Asst. Vice Pres., International Communications: International Pres., Vice Asst. (U.S.) + 1 630 623 3000 Gordon: Mike of Communications: Director Coffing: (U.S.) + 1 630 623 6263 Bridget www.mcdonalds.com or Service Category: Product Exclusive Services Food Retail Eli Primrose-Smith: (U.S.) + 1 914 765 4700 Primrose-Smith: Eli Communications: Director, (U.S.) + 1 914 766 3275 Lowder: Craig www.ibm.com or Service Category: Product Exclusive Technology Information Sponsorship: Olympic Worldwide Pres., Vice Other TOP www.semagroup.com Movement: the Olympic Supporting will Sema in Barcelona. Games information technology support at the Olympic provided Group 1992 the Sema In TOPofficially join the TOP in 2001 as a member of programme V. participation: Future (2001 – 2008) VI TOP V and TOP Integration & Systems Technology Information Manager, Worldwide Olympic Operations Olympic Worldwide Manager, + 61 2 9856 5401 (Australia) Schaeffer: Vince (U.S.) + 716 423 5782 Carl Langsenkamp: Relations: Public Manager, www.xerox.com www.xerox.com Movement: the Olympic Supporting 1993 In in Innsbruck. Games Winter servedthe official copier sponsor of the Olympic as Austria 1964 Rank Xerox In TOP joined the Xerox TOP of as a member programme III. participation: Future V (2001 – 2004) TOP & Publishing Document Supplies 6

olympic marketing matters matters marketing olympic issue

May 2000 May 16 olympic marketing matters issue May 2000 May 16 7 electronic security electronic management on-line career cereal breakfast electrical utility services home appliances forwarding customs & freight beef branded ticketing services lodging Sensormatic Sensormatic Monster.com Kellogg Power Utah Sears Schenker Certified Angus Marriott Tickets.com — Rick Burton, Director, Warsaw Sports Sports Warsaw Director, — Rick Burton, of Oregon University Center, Marketing SLOC Signs New Sponsors New Signs SLOC Committee for the 2002 Lake Olympic The Salt continues to (SLOC) Games Winter Olympic programmes. establish successful marketing States of the United Properties The Olympic between venture (OPUS), the joint marketing SLOC Olympic States and the United Committee, has signed partnership agreements companies during the first with the following months of 2000: three SLOCNew Partner Category Sponsors Suppliers “[The signing of Nike as a supplier for SOCOG as a supplier for “[The signing of Nike the Olympics 1999] signaled that in December one of the biggest As still the Olympics. are a language you gives the Olympics global events, for conducting business and a platform internationally.” maintained a which originally Reebok, with SOCOG, suppliership agreement the terms in late 1999 over challenged SOCOG The licensing agreement. and conditions of its of their repudiation in Reebok’s conflict resulted pursuing Reebok contract, and SOCOG is now courts. the Australian for damages through Inc. Nike, Marketing Sports Global President Vice Todd Ian (U.S.) + 503 671 3512 Tel: (U.S.) + 503 643 3938 Fax: lympic eebok O er R akes Ov T At the time of the negotiations, most At commentators speculated that achieving an all covering outfitting suppliership agreement constituents would be impossible with less than the Sydney before nine months remaining Games. Nike will supply clothing for the Australian Nike as teams, as well and Paralympic Olympic Games 2000 Olympic for the Sydney apparel force. work Nike has been granted Olympic marketing rights marketing has been granted Olympic Nike with and also maintains a licensing arrangement Committee for the Organising the Sydney (SOCOG). Games Olympic Contract as the fastest to what is being referred In the world’s Nike, sponsorship negotiations ever, has sporting goods manufacturer, premier assumed the sporting goods suppliership Games. 2000 Olympic contract for the Sydney 13, 1999, after stepped in on December Nike negotiations just 72 hours of round-the-clock continents. three across OCOGs Continue Sponsorship Success 2000 for Sydney On Signs Nike Leading Company Rosemary Windsor (U.S.) + 1.404.828.8720 Manager: Relations Public (U.S.) + 1 404 828 6130 Rosenberg Susan www.ups.com or Service Category: Product Exclusive Delivery Service Mail/Package Express and Program Olympic President Vice Events: Corporate olympic marketing matters matters marketing olympic 85 85 84 82 82 79 76 76 76 73 75 74 1998 1999

1998 1999 Agree Agree Agree Disagree Disagree Disagree Pourcentage des personnes interrogées répondant des personnes interrogées Pourcentage - dans tous les pays par l’affirmative "My opinion of the Olympics is higher today than its ever been" than its ever is higher today "My opinion of the Olympics % respondents agreeing: All Countries agreeing: % respondents 55 percent of respondents in 1999 stated that in of respondents 55 percent -23 55 -24 52 • 52 percent of respondents in 1998 stated that their of respondents • 52 percent it was higher than Games opinion of the Olympic been. had ever • with a set disagree or asked to agree were Respondents The graph Games. of statements about the Olympic 1998 and 1999 from the responses compares below of the public opinion and illustrates that positive steady or improved has remained Games Olympic during the past two years. Image of the Games is Stronger than Ever than is Stronger of the Games Image support that public for the Olympic shows Research is and the past two years during has increased Games graph The following than ever. stronger now of public support 1998 and levels from compares 1999. higher was Games their opinion of the Olympic been. than it had ever Les Jeux Olympiques créent un sentiment Olympiques Les Jeux d’harmonie et de paix la représentent Olympiques Les Jeux quintessence du sport sont un événement spécial Olympiques Les Jeux car ils n’ont lieu que de temps à autre davantage consacrent Olympiques Les Jeux la participation que la réussite des Chaque personne peut retirer Olympiques satisfactions des Jeux Aucun événement ne rassemble tant les Olympiques individus que les Jeux 99 95 96 96 96 94 96 96 96 93 94 92 90 & 83 Keen Casual 75 71 71 AMES 64 55 G 57 53 53 55 92 51 49 46 45 43 43 % Respondents UBLIC Worldwide research shows that the shows research Worldwide P No Impact on Olympic Image on Olympic Impact No : (57 percent in 1999, and 55 percent in in 1999, and 55 percent (57 percent

1999 1999 1999 1999 1999 1999 1999 8 LOBAL UPPORTS THE PONSORS USA 1998 Brazil 1998 China 1998 The chart below measures the “keen” and “casual” the “keen” measures The chart below Russia 1998 France 1998 TOTAL 1998 TOTAL Senegal 1998 Australia 1999 Keen television viewing interest in the Olympic television viewing interest Keen than half of research more by was expressed Games respondents 1998). Keen television viewers are those respondents television viewers are 1998). Keen their social who stated that they tend to “plan Olympics” of the television coverage schedule around they can.” whenever the Olympics or “watch Olympic Broadcast Expects Increased Viewership Increased Expects Broadcast Olympic the past conducted throughout research Marketing in watching that public interest has shown years three on television has generally Games the Olympic somewhat between steady or increased remained 1998 and 1999. and broadcast Games in the Olympic interest in 1998 responses a comparison between provides and 1999. Global marketing research, Olympic marketing Olympic research, marketing Global broadcast Olympic success, and record-setting crisis of that the Olympic all indicate projections not significantly impact the 1998 – 1999 did Image. Olympic S Crisis Olympic G S public continues to hold the Olympic Games and the Games the Olympic public continues to hold athletes in veryOlympic high esteem.

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May 2000 May 16 16issue May 2000 olympic marketing matters

The High Public Esteem for Olympic Sponsors funds not only the operations of the OCOG The research also shows that public opinion of but also the quadrennial operations of the rest the Olympic sponsors continues to be highly of the Olympic Movement. favourable. Revenue Generation From current projections, the Olympic Pourcentage des personnes interrogées - dans tous les pays (1999)

Pas d’accord D’accord Movement — in this case, the IOC and

Je suis plus favorable à une SOCOG — will generate roughly US$2.6 société si elle est associée aux Jeux -26 -11 23 53 Olympiques billion dollars during the period 1997 – 2000 Les sponsors olympiques devraient associer leurs publicités et promotions -11 -4 52 82 related the Sydney Olympic Games. aux manifestations olympiques

Je suis plus favorable au partenariat This will come mostly from the sale of commercial s’il permet de garantir la pérennité des Jeux Olympiques -12 -5 42 77 collective broadcasting rights, sponsorships,

slightly slightly tickets, and licenses. The IOC is responsible for strongly strongly generating more than 70 percent of the overall revenue.

Key findings on this subject from the 1999 Study Revenue Generation, 1997-2000 include:

• 77 percent of respondents state that Tickets US$356m Broadcast commercial association with the Olympic Local Sponsorship rights US$1,331m US$315m+ Movement is welcomed if it helps to keep the 14% Licensing & 12% IOC led US$1,900m Olympic Games viable. Other US$66m 51% 72% 3% 21% • 53 percent of respondents stated that they feel SOCOG led US$700m 28% more favourable toward a company if it is TOP IV US$550m associated with the Olympics.

Revenue Distribution SYDNEY 2000 ENJOYS Together, SOCOG and the Australian Olympic Committee (AOC) will receive nearly 70 percent RECORD FINANCIAL of the overall revenue generated by the Olympic Movement, or nearly US$1.8 billion. SUCCESS • Broadcast rights: More than US$1.3 billion. Approximately 60 percent to SOCOG; 40 The Olympic marketing programmes for the percent divided among the IOC, the Summer Sydney 2000 Olympic Games have generated Olympic IFs, and the NOCs (through Olympic more revenue from broadcast rights, Solidarity) for the next quadrennium. sponsorship, licensing, and ticket sales than any previous Olympic Games. • TOP IV global sponsorships: Approximately US$550 million of monies and value-in-kind The Generation and Distribution of (VIK). Standard revenue split is 50 percent to Sydney Olympic Games Revenue the summer and winter OCOGs, 40 percent to Defining the sources and flows of financing for the NOCs, and 10 percent to the IOC. the world’s largest event, the Olympic Games, is Considering the value of technology and other complex. Both the Organizing Committee of the VIK services provided to the OCOGs, the Games (OCOG) and the rest of the Olympic SOCOG and Nagano Organizing Committee’s Movement — the IOC, the 28 Summer actual split of TOP IV revenue is closer to 60 International Olympic Federations (IFs), and the percent. (As the IFs do not participate in the 199 National Olympic Committees (NOCs) and global TOP marketing programme, they do not teams — contribute to the generation of revenue share in the revenue it generates.) and thus share its distribution. The revenue

olympic marketing matters

9 for funds and VIK to the AOC to compensate it VIK to the AOC funds and marketing programme, the NSW Government programme, marketing from potential profit bought-out any future another US$70 creating Games, the Olympic This is million fund for sport in Australia. the by to the AOC being provided The fees. rights of broadcasting redistribution US$7 million to return agreed recently AOC cost-cutting efforts. to assist SOCOG’s to construct lasting sports facilities, such as the swimming of the cost of the Olympic refund pool. million up to eight months out from the out from to eight months million up Games. venues. Games and operation of spectacular a fully- to ensure efficient use of revenues operation. funded Games to contingency fund that has been set aside expenditure. any unforeseen cover 1997 that preparing estimated in November Games will for and hosting the Olympic tens contribute US$4 billion to $5 billion and of thousands of full-time jobs to the Australian 1999 Arthur recent A more economy. Economic Anderson/Center for Regional Analysis study came to similar conclusions. US$120 million for the future. provided • million in SOCOG committed nearly US$50 • of the early success of the Sydney As a result • Certain been used on SOCOG funds also have • for the construction provided funds have The • the increased have SOCOG initiatives Recent • a significant budget includes The current • (NSW) Government Wales South The New • been sports have programmes Australia’s • SOCOG has preserved of $140 a contingency the use of the Olympic marketing rights during marketing the use of the Olympic period leading up to the Games. the four-year Total Revenue generated to been have revenues Sufficient Games. Olympic great produce Benefits to Australia the Olympic benefited from has already Australia Ceremonies. the Opening — before Games More Alone, the , close to 60 SOCOG / AOC SOCOG / US$1,800m the IOC has 70% Per capita, the Per and continues to exceed SOCOG consumer products SOCOG 30% SOCOG’s original local sponsorship SOCOG’s 10 properties, disbursed among programmes Movement. supporting the Olympic SOCOG-IOC local Australian marketing: Australian local SOCOG-IOC of SOCOG million than US$700 licensing. tickets sales, and sponsorships, budget/target projections. budget/target projections. local Australian sponsorship programme will sponsorship programme local Australian generate close to US$17 per Australian. programme (licensing) will generate in as US$2.50 per Australian, of excess to the US$0.32 per American compared Atlanta, raised by revenue target was US$207 million. Today, the Today, target was US$207 million. revenue US$300 has generated over programme million. nearly US$1.1 billion contributed This is needs. revenue of SOCOG’s percent, than the IOC provided US$300 million more in Atlanta. to the Centennial Games is SOCOG sponsorship programmes of the in terms of the size remarkable market. Australian than US$25 has generated more programme to the US$1.60 compared per Australian, Atlanta. per American raised by Local Australian sponsorship programmes Local Australian of their original generated 150 percent have target. Rest of Olympic Movement Rest of Olympic US$800m • to SOCOG. 95 percent • Olympic to the IOC for the use of 5 percent • • the itself, By • marketing, its global Through • The success of the combined IOC and Programme the programme, marketing Olympic The Sydney efforts, is combined global and local Australian to-date. the most successful programme • Sydney Olympic Marketing Revenue Distribution, 1997-2000 Distribution, Revenue

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May 2000 May 16 16issue May 2000 olympic marketing matters

Lasting Legacy Sydney 2000 Atlanta 1996 While creating a legacy for the Games is an No. of Countries 220 214 objective, making a profit is not. The legacy of No. of Hours from the Games consists of the improvement of the Host Broadcaster 3,2000 3,000 infrastructure for the host country’s athletes and the macroeconomic benefits associated with hosting a global event. No. of Broadcast Hours* Sydney 2000 Atlanta 1996 • SOCOG revenue from private sources will pay Ch. 7 (Aus) 1207 308 more than $525 million to the New South NBC (U.S.) 437.5 170 Wales government, for construction Japan Pool 730 332 reimbursements, rental of venues, security, and transport. CBC (Canada) 800 244 • SOCOG will leave an Olympic legacy of $179 GLOBO (Brazil) 175 76 million to the Australian Olympic Committee. BBC (U.K.) 327 297 • Payments to the government and AOC aside, *Some of these figures include cable-television hours. SOCOG would already have a significant (lasting legacy) surplus after covering the cost of Games operations. CELEBRATE HUMANITY Promotional Campaign Invites the World to Leading up to the Games the IOC always Celebrate Olympic Ideals works with OCOGs to reinvest any potential surplus into the quality of the Games. The The IOC has launched a global Olympic IOC encourages waiting until after the promotional announcement programme under conclusion of the Games to begin discussing the theme “Celebrate Humanity”. profit. This public service campaign is designed to communicate the core values of the Olympic Movement. The creative tells stories of Olympic Record-Setting Broadcast Expected athletes and the remarkable dedication, for Sydney friendship, strength of character, and joy that they demonstrate during the Olympic Games. The campaign rejoices in and invites the world to The Sydney 2000 Olympic Games television celebrate these values. broadcast is positioned to be the most-watched The campaign is based on qualitative and event in history. Research shows increased public quantitative research on the Olympic Image, interest in the Olympic Games, indicating that conducted in 11 countries among more than Sydney 2000 could shatter audience records set 8,500 people in 1998 and 1999. in Atlanta 1996. The next issue of Marketing Matters will provide an in-depth forecast of Promotional Announcement Programme Facts audience viewing of Sydney, based on global reach and average viewing hours. • The campaign includes: six television announcements, eight radio announcements, Most recent estimates state that Sydney 2000 will and double- and single-page print executions. be broadcast in 220 countries and territories. All are produced in English, French, and Many broadcasters plan to significantly increase Spanish. the number of programming hours from the Atlanta Olympic Games coverage. • No budget will be spent on media placement of the promotional campaign. The campaign will Marketing research conducted throughout the be run either as a public service promotional past three years has shown that public interest in announcement or as part of contractual watching the Olympic Games on television has agreements with Olympic marketing partners. increased between 1998 and 1999. See page 8 of this newsletter for details. • Bartered media support for the airing of the promotional programme has an estimated value of US$150 million, according to preliminary reports. olympic marketing matters

11 OTES N LYMPIC — Actor Robin Williams, voice for the English- voice Williams, Robin — Actor television announcements. language Olympic — Mr. Bud Greenspan, renowned Olympic Olympic renowned Greenspan, Bud — Mr. filmmaker World-wide Chairman and — Lee Clow, World-Wide TBWA of Director Creative “Many of my favorite Olympic memories were Olympic of my favorite “Many inspiring They were not gold medal situations. borders, moments of humanity that transcended people obstacles and languages, and unified the world.” around O IOC Internet Strategy for 2000 and Beyond The Future Conference: November IOC Announces & Sport Media of New of its emerging key areas The IOC considered 19 Executive strategy during its April Internet confirmed policies The Board meeting. Board Olympic of the Sydney coverage concerning web and announced it will host a conference Games on sport and new media as it began to determine guidelines for the future. Olympic on The IOC intends to host a world conference in and Sport” Media of New “The Future The conference Lausanne, 14 – 15 November. experience and Internet the Sydney will review “The advertising marketing and Olympic been the TV and radio has on both promotions in the heard seen or campaign I’ve most effective in the Olympic been involved I have many years dramatically portrayThey the talent, Movement. men and of the young courage, and endurance in the pursuit of the arena women who enter places the Olympics The campaign excellence. — with the athletes.” they belong where “This about advertising is not traditional in the the world of the about reminding sense; it’s The represent. the Olympics and dreams values of is the ultimate celebration Olympics to want the whole world to be able humanity; we participate in that celebration” ” umanity 12 — Michael Payne, IOC Payne, — Michael Director Marketing — Richard W. Pound, IOC First Vice President Vice IOC First Pound, W. — Richard and Chairman Marketing of the IOC Commission was for research, creative development, and development, creative was for research, of the production was production. Most donated or done at cost. countries worldwide from January 2000 January from countries worldwide Games 2000 Olympic the Sydney through 2000). (October and produced by the Los Angeles office of the the Los Angeles by and produced advertising agency award-winning Day. TBWA/Chiat eactions to “Celebrate H • in this programme The only budget invested • 200 than The announcements will run in more • created were announcements The promotional "We didn't have to invent anything new to invent for the didn't have "We telling the campaign. By 'Celebrate Humanity' simply are we athletes, true stories of Olympic world have the what people around reiterating -- that Games about the Olympic always known celebrate our highest achievements the Games and the best of our human attributes. been athletes have Olympic history, Throughout their this message through spreading These announcements simply performances. of values encapsulate this message and the core Olympism." — IOC President Juan Antonio Samaranch Antonio Juan — IOC President “Through dignity in their honour and to athletes teach lessons competition, Olympic campaign this promotional believe We us all. message as Olympic of the the core captures the performancesdemonstrated by of these individuals and entities have athletes. Many to this donated their time, talents and skills for their grateful extremely are We campaign. generosity.” R very are pleased these promotional “We the essence of able to capture announcements are and communicate the special values the Olympic and the Games of both the Olympic nature actions of the athletes.” Promotional Announcement Programme Facts Programme Announcement Promotional (continued)

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explore the potential of this important medium. • real-time desktop scoreboard applets for 11 Invitations to the conference will be extended to sports key leaders in the industry. • complete editorial coverage of all 28 sports on the Olympic programme “The Internet is moving extremely fast, and • biographies, statistics, and rankings for all Sydney is shaping up to be a turning point in the 10,300 athletes competing in the Games young history of sports on the Internet. We look • updated news from the Games organizers forward to inviting the world to learn from our • educational information, kits, and tools experience in Sydney and to work together to • athlete chat groups and communities shape the future of sport in the digital age.” • the widest range of official Sydney 2000 merchandise — Richard W. Pound, IOC First Vice President • 3-D virtual reality tours of the Olympic venues and Executive Chairman of the conference Jonathan Rust, SOCOG – 61 2 9297 2209 Craig Lowder, IBM – 914 766 3275 The conference will explore the convergence of television and new media and the resulting IOC Institutional Web Site – www.olympic.org impact on traditional sports coverage, existing In addition to the Official web site of the Games, television rights, and the sports fan’s the IOC will continue to provide information experience. A key focus of the conference will and news about the Olympic Movement through be sports governing bodies’ needs to keep pace its institutional site, www.olympic.org. Recently, with changing technology so they are in the best the IOC has developed several new areas to its position to promote their sports. site, enhancing its content: • www.horizon.olympic.org – Project Horizon The Executive Board also discussed Internet follows the stories of five athletes pursuing guidelines for International Federations, their Olympic dream through the Olympic National Olympic Committees, and broadcast Solidarity scholarship programme. rights-holders. The IOC will now initiate a • www.collectors.olympic.org – The Collectors review with the constituent members of the Site contains information concerning the Olympic Movement in order to finalize these IOC’s various Olympic memorabilia initiatives. procedures by its May meeting in Rio de Janeiro. • www.museum.olympic.org – The Olympic Museum site now features a virtual gallery of The Future of New Media and Sport Olympic exhibitions including hundreds of 14-15 November 2000 Lausanne, Switzerland photos and videos from the Olympic archives. Attendance by invitation only for more Related Sites and Issues – Video and Data information contact David Aikman at In addition to the above two official web sites, [email protected] the IOC recognizes the contribution of NBC, the U.S. broadcast rights holder, in covering the Sydney 2000 Web Site – www.olympics.com Olympic Games in-depth through its broadcast The IOC praised SOCOG and IBM on their site, www.nbcolympics.com. This site, focused development of www.olympics.com, the Official on the U.S. market, complements NBC’s Olympic Web Site of the Sydney 2000 Olympic Olympic broadcast and is being produced Games, which is set to break all previous Internet through a joint-venture between NBC and traffic records for a sports event site. It is Quokka Sports. expected the site will garner 1.4 billion page Following the collective request from Olympic views over the six-month period leading up to broadcast rights holders, the IOC Executive and during the Olympic Games. Board confirmed that no moving images or audio coverage of the Sydney 2000 Olympic www.olympics.com — the only official site of Games on the Internet will be authorized. The the Sydney 2000 Games — will be a IOC Executive Board also confirmed that, for comprehensive, one-stop site for all Olympic Sydney, athletes will not be permitted to carry or fans around the world, providing the fastest allow third-parties to place any electronic device source of results on the web and other unique on their person for the purpose of gathering and compelling content, including: biometrics data for Internet or other use. •real-time official results in every event categorized Franklin Servan-Schreiber, IOC, 41 21 621 6409 by every athlete, sport, and participating NOC olympic marketing matters

13 Time pieces Time Telecommunication Services ServicesBanking Products Steel Centres Shopping Insurance Airline Energy Management & Timing Media Media Broadcast Automobiles bedding, casual Cables, uniforms, batteries vehicle and tyres Michael R. Payne, IOC Marketing Director IOC Marketing R. Payne, Michael ambush marketing attempts or other rights attempts or ambush marketing Games the Olympic covering violations, the first For 200 countries. across broadcast the will also cover time, a similar programme Internet. of any form of clean will be delivered Charter, the only are Games The Olympic advertising. to be presented in the world major event stadium advertising.without any form of In all Charter, with the Olympic accordance be checked prior to athletes will also carrying that they are no competition to ensure advertising other than the traditional on any sports mark clothing and manufacturer’s equipment. — "The number of incidents of ambush marketing The is actually very Games few. at the Olympic is unique among the major Games Olympic to its offered of protection in the level events partners. Companies will always try to ride on the images of the Olympic goodwill and the powerful are returns because the marketing Games, as job is to make it as difficult significant. Our that possible, to plug the loopholes, and to ensure supporting the public understands who is really is else and the athletes. Anyone the Games cheating — and no one likes a cheater." • the Olympic with in accordance All venues, (marketing rights in Australia) rights (marketing Corporation Airline Official Team Team Millennium Olympic Partners Partners Olympic Millennium Team Telstra Banking Westpac BHP Westfield AMP & the Ansett Australia Energy Australia Swatch Ltd. News Fairfax Network Seven Holden Dunlop Pacific lympic Code of Conduct for the Sports O 14 Olympic Insignia Protection Act (1987); (b) Act Protection Insignia Olympic and Images) (Indicia 2000 Games Sydney (c) (1996); and most recently, Act Protection The (2000). Arrangement Act the Olympics not only for extensive provide Acts various Olympic of all the different protection restrictions but extend to provide trademarks, air space advertising-free vending, on street controls and other host city, the Olympic above marketing. unauthorised presence over marketing, all forms of presence and control sponsors limiting key opportunities to Olympic the uncontrolled of a repeat and preventing — in Atlanta encountered presence commercial companies who were much of which came from sponsors. not Olympic Goods Industry, established by the IOC with established by Industry, Goods Goods of the Sporting Federation World the Industry (WFSGI) all will address in 1997, the sports activity by aspects of marketing goods industry. any been designed to prevent guidelines have or hospitality that provides form of promotion not tickets to companies that are Olympic NOC ticket agents sponsors. Several Olympic cancelled had their ticket orders already have of their guidelines, and various due to breaches had to withdraw non-sponsors have the market. from promotions and the Olympic the rights of both the event the IOC, between agreements through Family, The NOC. SOCOG, and the host country’s is virtually Games unique amongst Olympic this properties providing in the major event of protection. level to identify on-air monitoring programme Sydney is expected to set a new standard in to set a new is expected standard Sydney for any major for partnerprotection exclusivity sports A number of important event. new some of to address introduced been have measures concern in Atlanta. the issues that caused Australian the IOC, SOCOG, the taken by Steps Wales South New Committee, the Olympic local authorities include: and other government, •(a) the specific legislation, including: Various • to tightly manage moved Local authorities have • The Anti-Ambush Efforts in Sydney Efforts in Anti-Ambush • and hospitality ticket marketing New • that combines programme A single marketing • The IOC will run broadcast a global live

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IOC Licenses Official Sydney 2000 The local marketing programme for the 2004 Video Game Olympic Games is scheduled to be announced in May. Based on broadcast and sponsorship Eidos Interactive, one of the world’s leading agreements already concluded by the IOC, publishers and developers of entertainment ATHOC has greater funding already committed software, announces “Sydney 2000,” the official than any previous OCOG at this stage of its video game of the Olympic Games. Sydney 2000 preparations. will be the first product of an exclusive six-year agreement with International Sports Multimedia (ISM) to publish video games under license from Olympic Prize for Sports Medicine the IOC. The winner of the IOC Olympic Prize for Sports “Sydney 2000” is being developed by Attention Medicine will be announced at a special To Detail (ATD) of Warwick, England. The ceremony in New York City on July 25 and the game will be available in August 2000 on award will be presented at the Opening Session PlayStation, PC, Dreamcast, Nintendo 64, and of the Sydney 2000 Olympic Games. The prize Game Boy Color. is endowed by Parke-Davis, a division of Warner- Lambert that has supported the IOC Medical The game features high-resolution graphics Commission since 1994. incorporating the latest motion capture technology, provided by Olympic athletes, and Established by the IOC Medical Commission in accurate models of all the Olympic facilities. The 1995, the Olympic Prize honours scientific game enables players to train a team of athletes, research related to human movement, physical and to compete from lower ranking competitions exercise, and sport. Through this award, the IOC up to competition for the Olympic gold medal. recognises the significance of scientific research that contributes to the betterment of Steve Starvis, PR Manager humankind. Eidos Interactive Wimbledon Bridge House Previous winners of the award, which include an 1 Hartfield Rd IOC medal, a diploma of excellence, and Wimbledon, London SW19 3RU US$500,000 to be used for further research, are: Tel: + 0181.636.3000 Fax: + 0181.636.3001 • Jeremy Morris, MD, DSc, and Ralph E-mail: [email protected] Paffengarger, Jr., MD, PhD, (1996)

Athens 2004 Update • Savio Lau-Yuen Woo, PhD, (1998)

The IOC and ATHOC concluded Since the company began its association with the the detailed terms of the overall IOC in 1994, Parke-Davis has significantly marketing plan agreement for the increased its support for various IOC sports Games of the XXVIII Olympiad, medicine programmes, including the biannual Athens 2004. IOC Sports Science Congress, the IOC Sports Science Academy and other sports science The agreement was signed by the President of the research projects. IOC along with the President of the IOC Marketing Commission Dick Pound & Parke-Davis Chairman of the IOC 2004 Co-ordination Wayne Dickerson, Director, Olympic Affairs Commission Jacques Rogge along with ATHOC Tel: (U.S.) + 973 540 4445 Managing Director, Costas Bakouris, in Lausanne on 19 April. IOC Medical Director: Dr. Patrick Schamasch Tel: (Switzerland) + 41 21 621 61 11

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15 AMES OMMITTEE G C LYMPIC O Greece Athens RGANISING Printed on Chlorine-free paper on Chlorine-free Printed George Bolos George O Costas Bakouris Costas Bakouris Managing Director Managing and Communication Tel: (30.1) 324.0004 Tel: Fax: (30.1) 323.2004 Fax: FOR THE www.athens.olympic.org THENS Director General for Marketing General Director A OMMITTEE AMES C G ONTACT Over 75% recycled paper including 25% post consumer fiber 75% recycled Over C , as well as independent producers of as independent producers , as well LYMPIC USA O RGANISING and Media Frank Zang Frank Mark Lewis Mark O Salt Lake City Lake Salt 1988, 1992, 1994 and 1996 1988, 1992, 1994 and 1972 “Visions of Eight” Licensing, SLOC Licensing, www.slc2002.org • archives newsreel complete collection of Pathé • films and out-takes of 1984, Greenspan Bud • 1956 Games of the Melbourne Films Official • 1936 Games amateur films of the Berlin • 1968 Games of the Mexico Film Official • of Munich Film the Official out-takes from AKE OTAB was established in 1995 as a resource was OTAB for Olympic broadcasters and marketing partners content and programming. Olympic-themed for of requests handles thousands OTAB footage per year. Olympic Binns Stuart OTAB Director, Bureau + 44 181 233 5353 Tel. + 44 181 233 5354 Fax. OTAB’s inception, the IOC has acquired nearly has acquired the IOC inception, OTAB’s Latest Games. the Olympic of Films all Official include: acquisitions L Tel: (1.801) 212.2002 Tel: Fax: (1.801) 364.7644 Fax: FOR THE Marketing Director USOC Director Marketing President and CEO, OPUS President Director of Communications of Director Vice President Marketing and Marketing President Vice ALT S AMES OMMITTEE G NFORMATION Produced by Meridian Management SA for the IOC © 2000 IOC All Rights Reserved All Rights © 2000 IOC the IOC Management Meridian SA for by Produced C I LYMPIC O Australia RGANISING Karen Webb Karen Sydney NSW Sydney ORE O Michael Bushell Michael Marketing Director Marketing www.olympics.com Tel: (61.2) 9297.2000 Tel: Fax: (61.2) 9297.2020 Fax: FOR THE M Marketing Communications Marketing YDNEY S , the IOC hopes to OR This business-to-business registered site allows web IOC’s users to access the video complete film and Visitors on-line. archives F , the web site of the Olympic site of the , the web www.otab.com OMMITTEE C NTERNATIONAL I Michael Payne Payne Michael LYMPIC Château de Vidy Château de www.olympic.org Marketing Services Marketing Marketing Director Marketing O Tel: 41.21.621.6111 Tel: Elizabeth McMahon McMahon Elizabeth Fax: 41.21.621.6216 Fax: to the site can view log sheets for thousands of shot lists, their own hours of footage, compile on-line. to OTAB and submit requests Through Television Archive Bureau (OTAB) on 19 April. (OTAB) Bureau Archive Television in this busy of requests the processing streamline are footage requests Olympic year. Olympic fax and phone. handled by currently contains over currently archive The Olympic the dawn footage from 20,000 hours of Olympic of film-making and the London 1908 Olympic 1998. Since all the way to Nagano Games of OTAB.COM the launch of The IOC announced www.otab.com IOC Announces Launch Launch IOC Announces Franklin Servan-Schreiber Servan-Schreiber Franklin 16 Director of Communications of Director 1007 Lausanne, Switzerland

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