advanced theory and practice in sport marketing - Marshalls University

conducted forever. The 1984 Olympics in Los Angeles was an interesting time
in the world for sport. The end of the 1970s and the early 1980s were some
tumultuous times. The former Soviet Union has invaded Afghanistan in 1979,
and the United States in protest boycotted the 1980 Summer Olympics held in
Moscow. In response, the Soviet Union almost decided not to show up at the
1980 Winter Olympics in Lake Placid (which would have resulted in no
“Miracle on Ice”). Many countries followed suit in the boycott of the Summer
Games in Moscow. In 1984, with the Summer Games coming to the United
States, the Soviet Union among 14 other countries including East Germany and
Cuba boycotted the Games. There were significant concerns that a number of
events (especially boxing and track and field) would be a lesser quality, and
hence that people might not come. There were also concerns that this would yet
again create a situation where the Olympic Games would be a losing business
venture, as no Olympics has turned a profit with the exception of the 1932
Summer Olympics in Los Angeles (however, this was during the Great
Depression, no other city in the world even bid on the Games, and less than half
the usual number of athletes and nations competed because they could not
afford the trip to Los Angeles).
Enter Peter Ueberroth, President of the Los Angeles Olympic Committee,
who had anticipated the possibility of a boycott, and at the same time viewed
the Olympics as an event that should be profitable. He had a vision of creating
a financially successful Olympic Games that would be in total contrast to the
deficit spending most host cities engaged in. He worked with the USOC and
IOC to allow use of the Olympic symbols by corporations in their advertisements
in exchange for financial support. A total of 43 major sponsors stepped
forward for the opportunity to be the official Olympic sponsor. Sponsorships at
the time cost a minimum of $4 each, with the television network ABC (American
Broadcasting Company) paying slightly over $200 million. This first effort into
sport sponsorship was successful, with the Olympic Games making a profit of
$225 million dollars.
This subsequently led to the International Olympic Committee’s (IOC) creation
of The Olympic Partner (TOP) Program. As the only sponsorship vehicle
that offers exclusive worldwide marketing rights to both the Winter and Summer
Olympics Games, TOP also provides technical and product support for the
International Olympic Committee (IOC), Organizing Committees (OCOGs),
and National Olympic Committees (NOCs). This in turn trickles down to provide
benefits to athletes, coaches, and spectators. As the most successful brand
name in worldwide sports, the Olympics and the TOP Program provides the
most exclusive global sport marketing platform in the world.
Peter Ueberroth was also a key figure in increasing the amount of sponsorship
for professional sport leagues. Ueberroth succeeded Bowie Kuhn as
Commissioner of Major League Baseball (MLB) in 1984. In the subsequent
5 years, he was the driving force behind increasing owners’ revenues through television
contract sponsorship negotiations, as well as sport marketing programs
that enticed large corporations, so spend significant amounts of money of promotional
opportunities and sponsorships. This model serves as a framework
not only for MLB, but moving forward to all sport organizations in the future.
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