Essay Ideas - What are the reasons for the increasing commercialisation of the Games?

Money has always been a controlling factor in the history of the Olympic Games. Its founder, Baron Pierre De Coubertin, was very much in favour of only allowing the aristocracy to compete in his modern Games. Even in 1896 businesses were eager to market their name alongside that of the Olympic Games. Over the years this interest has developed alongside the Games escalating to today’s situation where it is considered a major business enterprise as well as the most widely watched sporting event in the world.

This evolution has not come easily however. In 1976 the Games were scheduled for Montreal. Jean Drapeau, city mayor, was eager for this to be the best Games yet. Unfortunately, Montreal 1976 will be remembered for its financial failure rather than any athletic achievements. Historical moments such as the boycott by 22 black African nations because of Apartheid in South Africa and the debut of women’s rowing, women’s basketball and handball were all overshadowed by the farcical nature of the Games. The opening ceremony was performed in a half finished stadium, with skyscrapers overlooking the events. The permanent Olympic Village was corrupt and was creating a huge billion-dollar debt which is still being paid off today. Contractors went on strike until they got the price they wanted and one official even put the price of his new house onto the bill! After the Olympics it was impossible to recoup any money as the velodrome went unused and was converted into an insect museum and the pool has been covered and become a show-hall.

This financial disaster nearly spelled the end for the Olympic Games, Moscow 1980 threatened to be the last as it got by on USSR state funding. Los Angeles 1984, without the state funding the USSR had and the refusal of citizens to pay and suffer like those in Montreal, would have to do something drastic to ensure the future of the Games. The appointment by the IOC of Peter Uberroth, a marketing expert, to control the financial side of the Games revolutionised the Olympics. He set out to make a profit of $20-50 million by selling TV and radio rights combined for over $700 million, thus covering the $500 million expected cost, and further increased revenue through ticket sales and merchandising. As a result of mass business interest Los Angeles received $26 million worth of sporting equipment which could be used for years after the event by citizens, a massive contrast to those left unfinished or unwanted in Montreal.

Now that the Games were becoming a huge business the IOC looked to secure its future by taking advantage of the interest of multinational companies, so they created TOP – The Olympic Partner programme. This was and is the only official sponsorship deal for both the Summer and Winter Games. Its partners include Coca-Cola, Samsung, Visa, Panasonic and Kodak. The “sale” of the infamous 5 rings for use in advertising has also earned the IOC millions of dollars which can be spent on future games and facilities. For example the Atlanta 1996 games licenced 97 companies to use the Olympic logo but the real money comes from TV rights, culminating in over 50% of Olympic revenue. Out of the 3.5 billion television viewers in the world 3.2 billion watched the Atlanta 1996 games which is both a good thing financially and for the Games as a whole as more people are able to watch it and enjoy the experience. This helped make the Olympic Games the most watched sporting event in the world, with 3.7 billion viewers in 2000.

However more money brings more corruption as was revealed after the Salt Lake City 2002 Winter Games when officials were convicted of taking bribes to host the games there, including covering an official’s daughter’s university fees.

Increased commercialisation also opens up the debate of professional athletes being allowed to compete, going against the original amateur ideal. The IOC have now given in as in 1984 they excluded the amateur ideal from their Olympic charter and 1992 saw the display of the American basketball “Dream Team” – a team of ex—professional basketball players.

Overall the influence of money has been positive and greatly needed in preserving the Games and ensuring its continuation for years to come and a swiftly commercialising world.