HOST CITY McDonald’s organises the Player Escorts during the World Cup to strengthen a brand already popular with children Supersize revenues Major sports events depend on sponsorship for profitability, but the involvement of commercial partners must be in line with the event’s core values. Guy Oldenkotte investigates Whether we like it or not, sponsorship is the primary financial driver of the megaevents industry. Revenues from ticketing and broadcasting are hugely important, but it is sponsorship that can make or break a major event. According to Michael Payne, the first marketing and broadcast rights director appointed by the IOC, it was an intelligent sponsorship strategy that brought the Olympic Movement back from the brink of collapse. “In the early ’80s, the outlook was not optimistic. The Games had become too big and too political. People started writing the obituary of the Olympic Movement as the Olympics were virtually bankrupt and no city was applying to host the Games.” The revenues being generated at the time were no match for the escalating costs and intensifying political agendas. “Thanks to the vision and leadership of the president at that time, Juan Antonio Samaranch, the Olympic Movement managed to turn this around.” A marketing offer called The Olympic Partner (TOP) programme attracted the support of some of the world’s leading corporations. Coca-Cola, Kodak, McDonald’s, Visa, Samsung, Swatch and Panasonic, each paid vast amounts to become associated with the event. In his book, Olympic Turnaround, Payne points out that the first sponsor for Vancouver 2010 paid more than USD 150 million; nearly triple the total amount generated in Lake Placid 1980 from 200 companies. Pawel Weszka, an academic currently working on a PhD on sport mega-event branding, says: “The mega-event organizers have come to the conclusion that ‘less is more’ – fewer sponsors, category exclusivity and different tiers of sponsorship. Having fewer sponsors has allowed them to have the marketing activities more focused and to avoid the clutter of too many entities trying to expose their associations with the event. The exclusivity also had an impact on the increase of the sponsorship value.” At the same time as offering exclusivity to sponsors, event owners need to retain their integrity. “Samaranch knew very well that he would need resources but also remain independent,” says Payne. “Sponsors were told that they were critically important, but that they would be separate to the sport itself and to the location where the Games would be taken.” 38 February 2011  www.hostcity.net