OLYMPIC CORRUPTION: CLEANING UP THE IOC .Contents
The loss of faith in an international institution and the loss of face and credibility on the part of the IOC are key issues in this story. For many Canadians, it has been particularly troubling watching Toronto's bid for the 2008 Olympics fade in light of mounting evidence of wide- scale corruption in the site selection process and the growing conviction that Beijing will get the Games. In the meantime, the IOC attempts to clean house and restore its reputation.
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers.
Comprehensive News in Review Study Modules
Using both the print and non-print material from various issues of News in Review, teachers and students can create comprehensive, thematic modules that are excellent for research purposes, independent assignments, and small group study. We recommend the stories indicated below for the universal issues they represent and for the archival and historic material they contain.
"The Olympics: Games People Play," September 1996 "Special Olympics: Taking Part," April 1997 "The Winter Olympics," March 1998
Other Related Videos Available from CBC Learning Does Your Resource Collection Include These CBC Videos?
Barbara Ann Scott: Queen of the Blades Crossing the Line Pretence of Performance
OLYMPIC CORRUPTION: CLEANING UP THE IOC .Introduction
"I think that the Session has been one of the most important ones in our history. Steps have been taken to send a clear message to the world that we are doing what we promised to do. We said that exceptional circumstances require exceptional measures, and this is what we have done. It has not been very pleasant to discipline certain members, however it had to be done. Some members broke the rules and therefore will suffer the consequences." With these words President Juan Antonio Samaranch opened the March 18, 1999, press conference that officially ended the 108th Session of the International Olympic Committee (IOC).
The exceptional circumstances to which Samaranch referred relate to allegations of bribes (totalling as much as $7-million according to a U. S. Senate report) and corruption surrounding the successful bid by Salt Lake City (Utah) to host the 2002 Winter Olympics. As a result of this scandal and the subsequent investigation led by Canadian IOC member Dick Pound, 10 members of the IOC have been removed, either through resignation or expulsion, and an additional 10 have been severely censured or warned. Those that were expelled are crying foul. All were from small and relatively powerless countries in Africa or South America, and the feeling exists in these countries supported by many critics of the IOC elsewhere in the world that they were scapegoats used to divert attention away from far greater systemic problems within the IOC.
The IOC maintains, however, that the expulsions are only the beginning, and that further changes to the IOC s structure, the site- selection process, and the level of transparency (openness and accessibility) within the organization will soon follow. Already they
have announced that members will be forbidden to visit the six cities bidding to host the 2006 Winter Olympics and that an ethics commission consisting of seven or eight members will be formed, the majority of whom will be from outside the IOC. In addition, a reform commission called IOC 2000 will be set up to examine such proposals as term limits, democratic elections, open meetings, and open financial records. But as skeptics point out, this new committee will be chaired by Samaranch himself, and it is hard to reform the very institutions that one has put into place. The changes made by the IOC are, in the words of The New York Times, "baby steps." Will they be enough to regain the trust that was so badly damaged as a result of the mounting evidence of wide-scale corruption throughout the IOC?
The IOC scandal is a news story that poses numerous other universal questions. For many people around the world, the Olympics have always been an ideal, evoking comforting and affirming images of decency, peace, and prowess, and of young people coming together to celebrate amateur athletic achievements. However, evidence suggesting a loss of integrity on the part of the organizing body and the emergence of a "culture of impropriety" hindered by bureaucracy and cronyism has created a sense of betrayal and a loss of faith. For many, the Olympic ideal has now been sullied by vote-buying, influence-peddling, graft, corruption, and greed. In the opinion of Canadian skiing legend Ken Read, there is a cynicism among the athletes those who represent the heart and soul of the Olympic movement and the general public "to the point where now, sadly, the IOC is a joke."
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers. OLYMPIC CORRUPTION: CLEANING UP THE IOC .Just Let the Games Begin
The Olympics. Many images are evoked by these two words. It s a cold Saturday morning in 1994. Sitting on the sofa with several friends, a comforter wrapped around us for warmth, our emotions keep oscillating from joy to anxiety to despondency, as we watch the Canadian men s hockey team play in the final medal game against the United States. The game is tied at the end of regulation time and still tied after two overtime periods. The gold medal would have to be decided by shoot-out. I remember the feeling in the pit of my stomach. I remember the tense silence in the room. I remember the dread when a Canadian player misses the net and the despondency when the U.S. player doesn t. "The Olympics" will always remind me of that game.
What is a game? What are The Games? Human beings have always participated in game playing. Game playing develops physical co- ordination, balance, muscles, self-esteem, good general physical and mental health, and involves many social rituals and pastimes that people find fulfilling and life-affirming. Game playing is also simply fun.
Game playing, however, like wolf cubs running, leaping, and chasing each other, struggling over a piece of meat brought back to the den by a parent, can also involve some darker elements and controversies. It is a question of playing at survival. And often the game gets rough. When is body contact in a game acceptable? When is it not? When is it there for the purpose of entertaining the fans by appealing to their aggressive tendencies? When does Olympic game playing become excessive nationalism or become the means to a different end: enormous wealth. When is game playing a political issue? When is it a power struggle?
1. Before viewing this News in Review report, briefly jot down some of the your most memorable Olympic moments. Share your list with the class and see how many others have included the same moments on their lists.
2. While watching this report about the bribery scandal rocking the IOC, don t forget these moments, but think carefully about the political and ethical issues of the Olympics that this story has brought to the forefront. In terms of this particular story, suggest answers to the following:
(a) Who are the major players on the IOC team? What are their roles in making the Olympic Games possible?
(b) What are the rules they must play by? What rules were broken? What was the nature and severity of the rules that were broken?
(c) Who received penalties? What was the nature and severity of their penalties? Why were these rules broken?
(d) Who is the "referee" in this IOC controversy? Do you agree with the referee s call? What were the results of the encounter?
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers. OLYMPIC CORRUPTION: CLEANING UP THE IOC .Lords of the Rings
In order to understand the current IOC corruption scandal, it is important to understand the history, structure, philosophy, and power of both the IOC, and its leader, Juan Antonio Samaranch. Many people do not realize the international power of the IOC, its financial influence, and its political role. By bestowing the Games on a particular city, the IOC like a powerful nation in fact grants that city and nation enormous potential economic benefits not unlike foreign aid. The city and country will accrue significant and long-lasting benefits from the Games hence the vigorous campaigning to win them. Critics suggest that the decisions of the IOC are in many ways political ones. Some observers have even commented that as president of the IOC, Samaranch has the power of the head of state of a small, powerful nation. As you read the following information, consider to what extent the IOC functions like a sovereign state.
The IOC Committee The International Olympic Committee is a non-profit organization responsible for the Olympic Movement and the Olympic Games. The Committee consists of members who are chosen rather than elected. IOC member nations may have one member on the committee (although not all of them do) or two if the country has hosted the Games in the past. At the beginning of 1998, the IOC consisted of 118 members.
The IOC was established, and the original membership was chosen, by Baron Pierre de Coubertin in 1894. Most were men of substantial means and influence whom Coubertin knew and trusted. Even from its inception, this closed club was not run democratically. Coubertin himself often spoke freely about his distrust of democratic principles where the chance existed that the majority might out-vote him. Critics have called the IOC male-dominated and eurocentric. In fact, Baron de Coubertin was opposed to women participating in sports. He felt that they should limit themselves to giving awards to the winning male athletes. Female members were not admitted to the IOC until 1981. In 1996, only seven of the 106 members were female. In addition to the lack of women on the IOC, there are no currently competing athletes on the Committee. As Andrew Jennings states in his book, The New Lords of the Rings " . . . the reality is that athletes have no votes at the Olympic Committee, no power in their own sport."
The IOC markets itself, and the Olympic Games, as "a public trust," but in actuality the Olympic Charter states that "the Olympic Games are the exclusive property of the IOC, which owns all rights thereto." Since it is a private organization, the IOC has, in the past, been able to act with little outside interference. The members are not responsible for giving audited accounts of their spending or their ethical practices. All sessions of the IOC are closed to outsiders. However, the current scandal facing the IOC may change that somewhat.
The IOC is looking outside its closed and secretive Committee in order to restore its credibility internationally. It has approached several high-profile names to work on a newly established ethics commission. These include former U.S. secretary of state Henry Kissinger; the main architect of the European Union, Jacques Delors; former Swiss president Kurt Furgler; former United Nations secretary- general Javier Perez de Cuellar; and Howard Baker, a former White House chief of staff. The mandate and powers of the commission have not been disclosed. Many of those who have watched the IOC closely over the years are cynical about the possibilities for real change. "They are who they are," said Canadian Olympic basketball player Sylvia Sweeney. "It s almost the nature of the beast. It s a very European-centred organization that is run almost like the old family routine. They will rally around each other when times are tough."
The Leader Juan Antonio Samaranch, 78, has been the leader of the IOC since 1980 and is not due to retire until 2001. This will make him the third longest-serving head in the IOC s 105-year history. Samaranch is the son of a Spanish textile magnate and the long-time chairman of Spain s largest savings bank, La Caixa. He has been highly criticized for being a member of the Spanish government under the former dictator Francisco Franco. Samaranch detractors call him high- handed and autocratic and accuse him of running the IOC as though it is a monarchy. He insists, they maintain, on being addressed as "Your Excellency," a title left over from his days as a Spanish ambassador to the Soviet Union. Supporters, on the other hand, see Samaranch as a reformer who, seeking to change the face of the IOC, appointed a number of members from under-represented areas such as Africa. Samaranch has the almost unanimous support of the IOC, but as critics point out that is not surprising since he has appointed over 80 per cent of the current members. Samaranch maintains that he was taken totally by surprise by the allegations of wrongdoing in the IOC. But as Lars Eggertz, a member of the Falun, Sweden, group that lost the 1992 Winter Games bid, told Macleans magazine, this is very unlikely. "Mr. Samaranch is the conductor of the whole thing. He is the one responsible for all his members. They are all fed from his hand."
Discussion 1. To what extent do you think the structure and history of the IOC have played a role in the corruption scandal that is now plaguing it? How much responsibility or accountability should be assumed by Samaranch?
2. Should the IOC remain a private organization? Is it inconsistent if the Olympics have become a "public trust" that their organization remain in the hands of a select group of elites?
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers. OLYMPIC CORRUPTION: CLEANING UP THE IOC .Ethical Gymnastics
Several years ago, the film Gross Point Blank was released. In it a hit man decides to attend his 10-year high school reunion and is reacquainted there with his high school sweetheart. In a pivotal scene the girlfriend confronts the hit man about his career choice and asks him, "How come you never learned that it was wrong that there are certain things you don t do . . . in a civilized society?" He responds with the glib, but possibly accurate question, "What civilizations are we talking about?" The scene raises an interesting issue. Are ethics universal or are do they vary from society to society, from culture to culture? Are ethics absolute or arbitrary? Can something that is considered wrong in one country be considered acceptable in another?
When asked by The Toronto Star about differing ethical standards around the world, business ethics expert Richard Leblanc referred to a study by Transparency International that ranks countries by a "corruption perceptions index." The ranking was based on the results of a number of surveys and reflects business people s perceptions of countries ethical standards rather than their actual standards. Eight- five countries were included in the index, with Denmark, Finland, and Sweden ranking at the top (perceived most ethical). Canada ranked fifth. Leblanc found that poorer countries are generally more susceptible to bribery. This view was seconded by John Kinuanjui, a journalist with the Daily Nation, the largest daily newspaper in East Africa. In the article he is quoted as saying, "Corruption is something that is accepted due to our economic standing." However, Elias Makori, a sports reporter at the same paper, feels that "bribery and corruption are endemic to all parts of the world it s just that Africans got caught."
Examine each of the situations described below involving the IOC. Consider whether these situations would be deemed unethical by North American social standards. Do some seem less offensive or more excusable than others? Are there plausible excuses or justifications that might be presented that explain why each occurred? In your opinion, how might a court of law view each situation? Finally, as a class, rank these situations from most offensive (1) to least offensive (4).
Charles Nderitu Mukora, the IOC member from Kenya, was expelled from the IOC for allegedly accepting a bribe of $34 650 from Salt Lake City officials. He maintains that the money went only to fund his Mount Kenya training camp for long distance runners. Despite the high quality of its athletes, the government of Kenya only gives money sporadically to fund the Olympic programs, and Mukora maintains that he needs foreign money to keep the program going. In addition to the Salt Lake City bribe, he is also accused of receiving $35 000 from officials in Sydney, Australia, and of trying to solicit $1- million from sports officials in Toronto in 1991 for his vote to award Canada the 1993 outdoor track and field championships. When New York Times journalist Ian Fisher went to visit Mukora s Mount Kenya camp he found it "barely developed."
In his book, The New Lords of the Rings, Andrew Jennings outlines the bidding process for the 1998 Winter Olympics. "The best technical bid was clearly Salt Lake City. They have everything in place . . . a vast convention and press centre; a 50 000-seat Olympic stadium; an Olympic village for 4000 athletes and all the ski venues. The skating and ice hockey sites were under construction and due for completion in less than six months." Nagano, however, was awarded the Games even though their facilities were hardly developed. Frustrated by the process, the Salt Lake City team decided to play the game and doled out somewhere between an estimated $3- to $7- million in favours, including tuition fees for children of IOC members and cosmetic surgery for another member s wife. They were successful in winning the 2002 Winter Olympics.
Even though membership on the IOC is considered a volunteer position, the IOC paid $204 000 last year for a lavish suite at Lausanne s Palace Hotel in which Juan Antonio Samaranch could stay while he is in Lausanne. In addition, the IOC picked up his other travel and living expenses. But, as the IOC s financial controller Thierry Sprunger pointed out, the IOC does not pay Samaranch a salary. This is paid by the Spanish savings bank La Caixa, where Samaranch is the chairman of the board.
Paul Henderson, who led the Toronto Ontario Olympic Council (TOOC) in its unsuccessful bid for the 1996 Summer Games, admitted that he found a job for the husband of Finnish IOC member Pirjo Haggman and had his organization pay the rent on their Sault Saint Marie home. In addition, he hired a former Soviet Olympic Committee employee as a translator in order to help her get her family out of what was then the Soviet Union. He also hired the son of another Olympic member to work in his plumbing company. In each case, Henderson maintains, the people he was helping were personal friends of his in addition to being IOC members. As Carol Anne Letheren, the chief executive officer of the Canadian Olympic Association puts it, "If there s a failing for many of us, it s that you get to know the bidding cities too well and become friends with them. You see them at events more often than your colleagues. So the process has to be altered to protect that." Pirjo Haggman maintains that she was not aware that the rent on their accommodations in Sault Saint Marie was paid by the TOOC, but thought it was being paid by her husband s company. She resigned her position with the IOC when the allegations came to light.
For more information on this issue you can access the entire Salt Lake City ethics committee report at www.slc2002.org.
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers. OLYMPIC CORRUPTION: CLEANING UP THE IOC .An OATH for Reform
At an inaugural news conference held in Lausanne on March 16, 1999, a group of Canadian athletes calling themselves OATH (Olympic Advocates Together Honourably) announced their organization s formation and raison dêtre to the world. During the news conference, one of the group s main spokespersons, Olympic gold-medal swimmer Mark Tewksbury, spoke of how the IOC had lost its credibility and had dampened the Olympic spirit. The mandate of OATH, he maintained, was to gather together not only athletes but all Olympic supporters who are eager to see the IOC become more accountable to the public. Keith Stein, a vice-president of the Canadian auto-parts giant Magna International, a corporate sponsor of OATH, put it this way: "The Olympic movement is one of the few treasures shared by the world. OATH will provide the world with the voice it so desperately needs to ensure the Olympic treasure is not plundered."
News in Review had an opportunity to talk with two members of OATH about the recent developments in the IOC corruption scandal and OATH s reaction to them. The two members interviewed were Susan Auch, a two-time Olympic silver medalist in speed skating, and Ann Peel, an athlete advocate and a world bronze medalist in racewalking. The main questions asked of them and their answers are summarized below.
Do you think the IOC made any significant changes at the 108th session in March?
Both Auch and Peel agreed that the changes made were superficial and didn t get to the root of the systemic problems facing the IOC. The changes were perceived by both of the athletes as a public relations exercise rather than a legitimate attempt to root out corruption. Real change, according to Peel, would require a "paradigm shift" within the organization that would probably be very painful for many of the current members. "There remains a philosophy, or deep-rooted belief, within the IOC that they have an entitlement to lead . . . ." The accountability and transparency built into most non-profit organizations today could be perceived as a threat to that inveterate belief system.
Did the investigation headed by Dick Pound go far enough? Why or why not?
The investigation committee was made up of IOC members, argued both Auch and Peel, and therefore even if it acted independently there still remains the perception of bias. If the problems of the IOC are systemic, it is necessary that every member of the IOC, and not just the ones that had allegations brought up against them, should be investigated. A thorough investigation of this nature can only be performed by a group of non-IOC members working at arms-length from those being investigated.
What are your impressions of the make-up and mandate of the new ethics commission? Have they been given any actual power to facilitate change within the IOC or are they only public relations window dressing?
Once again Auch and Peel had the same concerns about this new committee as they had about the investigation committee. Although the IOC has included several people from outside the IOC to be members of the committee, the committee as a whole cannot be said to be independent. The committee still has IOC members such as Keba Mbaye of Senegal, Kevan Gosper of Australia, and Chiharu Igaya of Japan on it and reports directly to the IOC. As Peel pointed out, no public disclosure has been made of the committee s terms of reference, power to implement changes, or power to enforce those changes. Until those terms have been made known to the public, it is impossible to assess if the new committee has a mandate or is acting in the best interest of Olympic Spirit.
Can you envision OATH and the ethics commission working together in any capacity?
Susan Auch believes it is absolutely critical for the two committees to work together, and Ann Peel strongly seconded this notion. OATH, in its upcoming symposium on sports and ethics, is gathering stakeholders together from around the world to discuss this very issue. The recommendations that will come out of this symposium will be passed on to the commission. It is only in the working together of all the stakeholders, the athletes believe, that the necessary changes can be made. To this point, the IOC Ethics Commission has not made any contact with OATH.
What is the mandate of OATH in light of the recent changes made by the IOC? Are there any other changes that OATH is suggesting in order to be satisfied that the IOC is serious about reform?
Auch was quick to point out that, in her view, the IOC hasn t really made any fundamental changes to date, and therefore the mandate of OATH has not in any way been altered since its inception in March. The primary goal of OATH, as outlined in the organization s guiding principles, is "that principles, procedures, and systems for the IOC, and all governors of international sport, ensure ethical, accountable, transparent, inclusive, and democratic management and governance." What changes are needed to ensure that this principle is met will be decided at the symposium in June 1999? "I cannot tell you what changes the stakeholders at the symposium will suggest are needed. And I believe that it is not our position at OATH to decide what those changes will be. They could be things such as an independent audit or more athlete representation on the Committee, but I can t presume that these are the changes the stakeholders at the symposium will suggest." And as Peel pointed out, "If we were to decide issues of that magnitude as a small group, without the input of all the stakeholders at the symposium, then OATH would be no more accountable, transparent, inclusive, or democratic than the IOC. It is crucial that as an organization we practise what we preach."
Follow-up Discussion
1. In an article in The Toronto Star Randy Starkman wrote, "There s no doubt the odds are heavily against the formation of a world-wide Olympic athletes movement, but Pound and his boss Juan Antonio Samaranch must realize that in the end the public and sponsors would be squarely behind the athletes if they get it off the ground." Do you think a grassroots group like OATH could be successful in implementing change at the IOC? Why or why not?
2. OATH will be holding its symposium June 11-13, 1999, in New York City. At that time, the participants will decide on the changes they feel are necessary to the IOC and the measures OATH can take to encourage the IOC to make those changes. As a class, discuss the extent to which you feel additional changes should be made to the IOC as an organization. What would they be? If you were an advocacy group, what practical measures could you put into place to ensure that these changes occurred? Even though your class may not be able to attend the symposium (although it is open to everyone) your ideas and opinions can still be heard. Collect all of the suggestions elicited by the class and e-mail them to OATH at [email protected].
3. One of the ideas that OATH may choose to endorse is to encourage the U.S. Senate to adopt a bill to strip the IOC of its tax- exempt status and limit the deductions that sponsors can claim for Olympic fees. This would have a major impact on the Games since 60 per cent of Olympic money comes from U.S. sponsorship and the fees paid by U.S. networks to broadcast the Games. The IOC maintains that it is an independent organization and therefore should not be subject to U.S. government interference. But others argue that the IOC and the Olympic Games have marketed themselves as a public trust and therefore have opened themselves up to censure by those that have been appointed to protect this "public interest." For OATH, an advocacy group made up of athletes, the U.S. Senate Commerce Committee hearing is a double-edged sword. On the one hand OATH may be able to influence the IOC to implement changes to the organization through a Senate bill. On the other hand, it is in the best interests of the athletes for the Olympics to continue. By removing the tax-exempt status of corporations, the U.S. government could end up jeopardizing the Games, thereby leaving the athletes with one less international forum in which to compete. Do you believe that a U.S. Senate bill is appropriate? What are some of the possible benefits or detrimental effects that could occur if the U.S. stripped the IOC of its tax-exempt status or limited the deductions that sponsors could take for Olympic fees?
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers. OLYMPIC CORRUPTION: CLEANING UP THE IOC .And Now a Word From Our Sponsor
When one considers the amount of money and publicity that can be generated by the Olympics, it is not surprising that cities around the world want to get into the game. According to statistics reported in Macleans magazine, the revenues from the Nagano Winter Games of 1998 and the Sydney Summer Games of 2000 are expected to reach $3.5-billion (U.S.). These enormous sums, accruing primarily from corporate sponsorship and the price paid for television rights, are fueling the desire of cities around the world to host the Olympic Games.
For many of us, especially those raised in the 1980s and 1990s, the relationship between the Olympics and capitalism is commonplace. In reality, however, the marriage of these two institutions is a relatively new development in the 105-year history of the modern Olympics. To some this relationship marked the salvation of the Games, to others its ruin. In many ways it is the cause of the corruption scandal that is currently plaguing the IOC. Can it also be the cure?
Crossing the Rubicon "The minute we handle money, even if we only distribute it, there will be trouble." Thus was the philosophy of Avery Brundage, the former IOC president whose retirement in 1972 ended his 20-year rule. He was a staunch believer that commercialism had no place in the Olympic Games. Although this philosophy was considered admirable by many in the IOC, it was also considered dangerously naïve.
Without exploiting the commercial possibilities of the Games, the Olympics were a money-losing venture. A case in point is the 1976 Games, which left a billion-dollar tax debt for the people of Montreal and the province of Quebec a debt that was still being paid off two decades later. Without the promise of revenues generated from advertising, there was very little interest shown by cities to host the Olympics. "On the basis of the Montreal experience, one might question why any city would ever again seek to host the Olympic Games," wrote a research team from Atlanta in 1977.
Those left within the IOC were quick to read the writing on the wall, and out of what some saw as necessity, Brundage s philosophy was in part abandoned. The change in philosophy was completed in 1984, when the IOC learned an unforgettable lesson in capitalism. The teacher was Peter Ueberroth; the classroom was the 1984 summer Games in Los Angeles.
That year, Los Angeles was the only city that seriously campaigned for the summer Games, and therefore the IOC had little choice but to award, although somewhat reluctantly, the city with the 1984 Olympics. Members of the IOC were worried that the city would turn the Olympics into a Hollywood-style spectacle, thereby bringing shame to both the institution and the Games. And in many ways their fears were realized. Ueberroth understood that the Olympic rings a symbol that, in the words of one Coca Cola executive, represents "the bright side of life, people striving to achieve, going for the gold" was the most under-exploited trademark on the planet. He negotiated a deal with the IOC to allow the host city to market the rings (previously only the IOC could market the rings) and to allow the host city to keep any profits created by such marketing. He then pitched the Games to corporations as an exclusive marketing opportunity and ended up creating a $235-million surplus. With the remarkable success of the Los Angeles Games, a line had been crossed, and commercialism has been a part of the Olympics ever since.
The Capitalism Cure? The Olympic rings are such a powerful advertising tool because in the minds of many consumers they are synonymous with everything that is noble and good: health, vitality, honour, national pride, and personal achievement. The marketability of the Olympics depends on that image, and companies are willing to spend a lot of money to be associated with it. The question most companies are now asking, in light of the recent IOC corruption scandal, is how much that image has been tarnished in the minds of consumers. Gene DeWitt, a media buyer whose firm deals with several Olympic sponsors, puts it this way. "Nobody wants to go to their board of directors and say they have put $100-million into something that is embarrassing the company. There s value assigned in an Olympic sponsorship to the wholesomeness and completely uncontroversial, positive quality of what an Olympics has stood for and what an advertiser stands for. . . . And this has been lessened."
Today, many corporations are not willing to part with the millions of dollars necessary to invest in the Olympics until they have assurances that the IOC is serious about cleaning up its act. This is a potential problem for the networks that have been awarded the Olympic broadcasting rights since they must sell extensive advertising just to recover the exorbitant fees they ve paid to the IOC for those rights. Both NBC and CBC are currently in the market to sell advertising for the Sydney Games. NBC is approximately halfway to its estimated $900-million break-even point, although insiders acknowledge that the second half, even at the best of times, is far more difficult to sell.
As Patrick Walshe, an analyst and vice-president with the media management company Harrison Young Pesonen Newell Inc., told The Globe and Mail the real impetus for change in the IOC will come from advertisers who have spent tens of millions of dollars to become official sponsors. "Coca Cola [an Olympic sponsor since 1928] spends too much money around the world protecting its high standards to be associated with damaged goods." With so much at stake it is understandable that companies such as Coca Cola and Eastman Kodak, which in the past have invested as much as $500- million, are urging the IOC to clean up their act internally in order to control the damage in the eyes of the buying public. Therein lies the irony. The very forces that first crossed the commercial Rubicon are now demanding an Olympics without greed or corruption. Will this be possible?
Discussion 1. In the words of Roone Arledge, president of ABC News, "I don t think the essence of the Games has very much to do with the heroic words that we use to describe them. It s basically a commercial enterprise that tries every four years to make as much money as it possibly can." Do you agree with this statement? In your mind does this diminish the Games and/or the achievements of the athletes?
2. In his book Lords of the Rings, Andrew Jennings writes about corporations that are closely tied to the IOC. He mentions Horst Dassler, the former president of Adidas who wielded great influence over the IOC during his lifetime. He was both loved and feared in Olympic circles, and many IOC members were appointed to the Committee based upon his recommendation. Dassler was crucial in helping Samaranch get the votes needed to become president. With this level of interrelationship between the IOC and some major corporations do you think that corporations will demand changes in the IOC? Why or why not?
3. Do you think the Olympics should readopt the philosophy held by Avery Brundage? Is this philosophy possible in the current capitalist culture? Should corporate sponsorship be limited in any way and, if so, who should determine and enforce those limits?
4. Based on contracts already signed by NBC and other networks, the recipient of the 2008 Games the ones that Toronto wants can expect $900-million in revenues from broadcast rights; Toronto s organizers also anticipate $483-million in corporate sponsorships and $310-million in licensing revenues. With reference to these figures explain why the corporate world has a vested interest in the Olympic Games. Explain also why a drop in the credibility of the Games is an important marketing issue.
5. The Canadian athletes who have formed OATH have been bankrolled by Magna International Inc., the giant auto-parts manufacturer with its head office in Aurora, Ontario. OATH is chaired by Belinda Stronach, the daughter of Magna founder Frank Stronach. Magna has recently diversified into the sports and leisure market, by buying the Santa Anita raceway in Los Angeles. OATH will be looking for other corporate sponsors as well. Given the IOC scandal, what precautions do you think either OATH or Magna should take to avoid a conflict of interest or the appearance of a conflict of interest? In such a relationship as the one between OATH and Magna, what, in your opinion, would constitute a conflict of interest?
6. Sporting groups, artistic organizations, and now educational institutions are forming professional partnerships with corporations who sponsor in part their activities or programs. There has been considerable public debate about establishing criteria to ensure that such relationships are appropriate. What do you think is meant by "appropriate"?
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers. OLYMPIC CORRUPTION: CLEANING UP THE IOC .Discussion, Research, and Essay Questions
1. The transcript of the March 18, 1999, press conference that ended the 108th Session of the IOC is available for perusal at the official Olympic Web site (www.olympic.org). Review Juan Antonio Samaranch s answers to the questions raised. In your view, are his answers adequate in light of the recent IOC corruption scandal? Why or why not? Assume that you are a journalist covering this press conference. Write a news story summarizing the main issues.
2. "As long as there is so much money at the end of the rainbow, it may be impossible to keep the Games drug-free. It isn t in anyone s short-term interest including the IOC s to begin nailing drug users. It would taint the product and rob it of its marketing value." from a 1992 article in the Atlanta Journal-Constitution. Do you agree with the above quote? Is the IOC doing everything it can to eliminate drugs in the Olympics? Research the effects of steroid use on athletes and possible approaches that athletic governing bodies could take to alleviate the problem of performance-enhancing drugs in the Olympics.
3. In part, the IOC scandal is the result of the interaction between the worlds of commerce and sport and the ethical conflicts that result from this interaction. Ironically, the Nike Corporation, a company that is a major supplier to the sporting world, is also currently embroiled in controversy regarding its use of "sweatshops" in Indonesia and Vietnam. Research this issue and write a report outlining both sides of the argument for and against using Third World labour to create
First World consumer goods. For an analysis of the case against Nike, see the Anti-Nike Resource Page at www.home.inreach.com/ mochi/nike/index.html and for a Nike defence visit the Nike Web site at www.nike.com. 4. The IOC corruption scandal is an ongoing story that will continue to unfold in the year to come. You can follow the latest developments relating to this story in the newspaper or on the Web using the Nando.net Olympic News Web site at www.sportserver. com. This site outlines daily Olympic news from the Associated Press, Reuters, Agence-France, and other news services around the world. Outline any major developments that have occurred since this issue of News in Review was issued.
5. The Summer Olympics in 2000 will be held in Sydney, Australia. Research and write a report on the city and what it is doing to prepare for the Olympics.
6. For more information on the IOC, read the book The New Lords of the Rings: Olympic Corruption and How to Buy Gold Medals by Andrew Jennings. Write a book review from a particular point of view. For example, you might be an IOC official, an Olympic athlete, or the president of a corporate Olympic sponsor. How would your view of the book change depending on the role you were assuming?
Introduction Just Let the Games Begin Lords of the Rings Ethical Gymnastics An OATH for Reform And Now A Word From Our Sponsor Discussion, Research, and Essay Questions.
Indicates material appropriate or adaptable for younger viewers.