Recently, the Winter Olympics are in full swing, let's talk about the Olympic Games today, throughout the history of the Olympic Games, some countries hold good luck will lose that is called a miserable, some Olympic Games earn very well, not only gained popularity, but also earned wealth! Let's say it was more successful, such as 1984
The Los Angeles Olympics, the 2008 Beijing Olympics, and the loss of the miserable, that is more! The Athens Olympics in 2004, the Rio Olympics in 2016, and the Tokyo Olympics in Japan that do not know whether it is 20 years or 21 years! The same is to run the Olympic Games, why is this gap so big? In fact, there is a huge pusher behind the Olympic Games, that is, the Olympic Committee!
So today we will talk about the business logic behind the Olympic Games, how the Olympic Games make money, whether they make money in the end, and the business logic of the open struggle between the Olympic Committee and the host countries behind this!
The IOC was founded in 1894 by Coubertin, the father of the Olympics! The purpose of the original creation of the Olympic Committee was actually very simple and very direct, that is, to promote the Olympic movement, so at that time it was to promote the development of sports, promote human rights and peace, and so on!
The first modern Olympic Games was held in Athens in 1896, when only 14 countries participated, 241 athletes, a total of only 42 events, this scale bar and the larger school to hold a sports meeting, so the initial business model is also very simple, that is, the host country is responsible for the organization, find a slightly larger venue, tables and chairs, simple competition facilities, peanuts and melon seeds, tea preparation on the line, the Olympic Committee this side is mainly responsible for publicity, let everyone know that there is such a thing, All come to hold a field, rich people hold a money field, no money to hold a personal field, the audience to watch the game, sell tickets, provide a source of income for the whole event! At the beginning, it was not for the purpose of profit, that is, everyone was engaged in an activity together, and at that time, a trust was deliberately established, and all the ticket income was put into this trust, and then the Olympic Games were held, and the money was deducted from this trust. More is all about spiritual support, and now a word should be called solidarity!
This minimalist model lasted for more than thirty years, until 1936, when it appeared
Television, so the 1936 Berlin Olympics for the first time appeared on television,
At that time, the signal was relatively weak, only a small area around Berlin could watch the Olympic Games televised, at that time there were only about 50,000 viewers, with the advancement of technology, the number of people watching the Olympic Games through television broadcasting was increasing, in 1948, when the London Olympic Games, the audience reached 500,000! The 1960 Olympic Games in Rome were televised worldwide for the first time! With the advancement of television broadcasting technology, the plate of the Olympic Games has become larger and larger, and the audience is also increasing!
This chart shows that since 1960, the income received by the Olympic Committee and the host country has risen from $1.2 million in 1960 to $300 million in 1984. It's not as simple as charging a fee for a fee!
Of course, the Olympic Committee and the host country want to share some benefits from the middle, what is the specific division? Everyone has already guessed it when it comes to the penny, and the game will follow! When there is no money, it is for the ideal, and when there is money, hmmm, well, it is more realistic to divide the money!
The penny must be to see who has the largest contribution, takes more, and contributes small, then it can only take the small head!
At the beginning, the Olympic Committee was still relatively high, our original intention was to promote the Olympic spirit, it doesn't matter if there is money or not ~ and the broadcast is done by the host country, the Olympic Committee does not have much from the middle, from 1948 to 1968 to 1% to 4% of the broadcast fee, to 1980 it was only 10%.
Over time, the mentality of the Olympic Committee has changed, on the one hand, the money is more and more, the Olympic Committee has also carried out some commercialization, he found that the entire Olympic Games, the reason why it can get so many broadcast fees, the main reason is because the Olympic Games themselves this brand or IP, no matter where the Olympic Games are held, everyone wants to see the Olympic Games, only take 10%, which feels too much loss! The Olympic Committee began to negotiate with the host country to increase the share ratio to 30%, 40%, until 2000, it reached 50%!
What's more, at the time of the Rio 2017 Olympic Games, this proportion reached 70%!
Broadcast fees are also the most profitable in the Olympic system, that is, the first source of commercial income! From 2013 to 2018 in this cycle, if you look at the income of the Olympic Committee, the broadcast fee accounts for almost 70%, this time the Olympic Committee is not as simple as promoting the spirit of sportsmanship at the beginning, publicity is still publicity, creating IP is also normal to build, but the money can not forget to draw into the pocket! In fact, not only the Olympic Games, but any large-scale event that can attract so many people to watch, the broadcast fee is definitely a lot!
And the World Cup is more popular than the Olympic Games, and the broadcast fee is higher! Relatively speaking, staying up late to watch the World Cup is more than watching the Olympic Games, and the good thing can be checked, and the ratings of the World Cup finals can reach about 1 billion people! The 2014 World Cup in Brazil was watched by more than 3 billion people, the Summer Olympics was broadcast in 2.5 billion to 3 billion US dollars, and the World Cup reached nearly 4 billion US dollars!
Regardless of whether the host country earns or loses, you see these ip sellers are making steady profits, and they are blood earned!
Going back to the Olympic Games, the 1984 Los Angeles Olympics, many people think that this is the most successful Olympic Games from a commercial point of view! In addition to a breakthrough in the field of broadcast fees, not only that, there is also a very important progress and breakthrough, that is, sponsorship!
In the early days of the Olympic Games, before the 80s, the commercialization of the Olympic Games was very weak, the level of peanut melon seed mineral water and the like! This is also related to the president of the Olympic Committee at that time, the president of the Olympic Committee at that time felt that if it was too commercial, it would go against the original intention, our Olympic spirit, is selfless dedication, selfless and gratuitous, to promote the peaceful development of the country This spirit, basically pull sponsorship of this matter is the host country itself within a small range of its own country to do it! The Olympic Committee does not care about these things at all, just want to run the Olympic Games, in 1972, the assets on the books of the Olympic Committee were only 2 million US dollars, you saw the 90s, from 2013 to 2016, the income of the Olympic Committee sponsorship and broadcasting was as high as 5 billion US dollars, which shows how much commercialization has been promoted!
What happened to the IOC? Wealth has grown by an order of magnitude!
In 1980, a very familiar name was the President of the Olympic Committee, Mr. Samaranch, took office!
His philosophy is not the same as that of the previous President of the Olympic Committee, who feels that the Olympic Committee needs to be commercialized and needs to become a self-sufficient organization in order to make the Olympic Games higher, bigger and stronger!
Since then, the Olympic Committee has embarked on the road of commercialization!
The first commercial Olympics in 1984 fell into the hands of the Americans, in Los Angeles! As a result, this time the commercialization is more successful, or more precisely, it is more profitable!
In fact, before Samaranch took office, in 1976, the Olympic Games in Montreal were a mess!
At that time, the city borrowed money to build various venue infrastructure, causing the government to be in debt for 30 years, and it was not until 2006 that the foreign debt was paid off, and the Olympic Games lost a billion DOLLARs!
At that time, the city that wanted to host the Olympic Games saw that Montreal had lost this bear, and it all retreated! Los Angeles originally wanted to host the 1984 Olympic Games, but the U.S. government was very unsupportive, the government did not want to borrow, if you want to do it, you find your own money to go! So the '84 Olympics became a hot potato, and no one wanted it! At that time, the president of the Olympic Committee in Los Angeles was called Eubros, and this person was very powerful!
He thought that this could be done, so he went to Talk to Samaranch about the conditions, and the reason why he could talk about the conditions was mainly that there was only one seedling left in Los Angeles now, and the others had been withdrawn, and could only be held in Los Angeles! Venues you don't have any requirements, I will renovate, some of the school's venues can also be used, can do it! Samaranch listened, it is also no way, get, just like this, let's discuss countermeasures, do it!
For Yuburos's side, the US government did not give him money, and could only find a way to make money himself, And Chairman You was also forced to do no tricks at that time, and finally had a clever move and thought of a foolproof strategy!
What's the solution? That's industry sponsorship!
Now I always hear the word industry sponsorship in some variety shows, but at that time, there was no concept!
Each industry chooses a sponsor to sponsor, such as Motorola and Nokia, all want to come to the Olympic Games, that is not OK, you two have to bid, the highest price will get it! The bidding price is also rising, which also makes Chairman You a big profit! In the case of not being optimistic at all, on the one hand, through negotiations to reduce costs, on the other hand through industry sponsorship to pull up the income, the results can be imagined, the 1984 Los Angeles Olympic Games not only did not lose money, but made 2 billion! It's an impossible task! This also resulted in one of the most commercially successful Olympic Games!
The Olympic Committee saw this, pondered for a moment, it turned out that sponsorship was so profitable, and immediately started to do it!
As soon as the Los Angeles Olympic Games ended, it engaged in a TOP project, that is, the olympic partners, which is the global partner of the Olympic Games! Start to recruit sponsors around the world, are big brands with deep pockets, such as Visa in 86, Samsung in 88, and then what Coca-Cola, Omega have successively joined in!
In 2017, Alibaba also joined the TOP project, signed a 12-year contract, and spent $800 million!
Broadcast fees account for about 70%, sponsorship fees account for about 20%, the remaining 10% are basically from the Olympic Games ticket revenue, Olympic games peripheral products ah, these income, the broadcast rights are under the control of the Olympic Committee, sponsorship of these large sponsors are also under the control of the Olympic Committee, the Olympic Committee will take a part of the total income to the host country, to encourage!
Other small projects, such as small advertisements in the Olympic Village, small advertisements in television, these are up to the host country itself! But all those who occupy the majority of the head are the Olympic Committee, firmly grasp the initiative! Mr. Samaranch is not only a friend of Chinese, but also a friend of money!
How the Olympic Committee makes money, the source of income is basically clear!
What we see on the surface is that the host country is in Zhang Luo, but in fact, the leading role behind it is the Olympic Committee, so what is the core logic of the Olympic Committee when it is running?
The Olympic Committee has two major goals, one is that the big IP of the Olympic Games is publicized, and finally realizes commercialization, so the first goal is to make this IP bigger and stronger, and the second goal is to obtain economic benefits in the process of holding the event!
If you want to do a good job, the better you look, the modernization of the venue, you will choose the kind of particularly ambitious one in the host country, especially want to do the event well, choose the right partner!
The second goal is to maximize the distribution of revenue, the Olympic Committee will share the revenue to the host country, of course, the Olympic Committee will definitely leave a large head, standing in this perspective of the host country, the Olympic Committee wants to do a good job in this activity, for the host country that is the cost, all kinds of inputs!
If the Olympic Committee wants more points, then the natural host country will have less points, which is the inevitable game between the Olympic Committee and the host country!
One is input, one is income, and it's that simple at the end of the day!
What is a very important factor in this game process? That is, the number of countries or cities that want to bid for the Olympic Games, and the number of people who want to apply for the Olympic Games, the Olympic Committee can talk about a relatively high condition, the bidding country can make the event bigger, and the Olympic Committee can get more benefits in this! If no one has bid for the Olympic Games, or there are very few countries that have bid for the Olympic Games, then the Olympic Committee will have to make corresponding concessions, and the Olympic Games cannot be let land! Someone has to follow! The requirements can be lowered a little, and the benefits can be divided a little more to the host country to restore the enthusiasm of the bidding city and the country!
After you know this logic, you will find that in the past few decades, the Olympic Committee and the host country have been in a dynamic game and balance process, and even a small microcosm of the development of the world economy can be seen!
In the 1970s, the Olympic Games became relatively bleak, and the Olympic Games were almost ten years ahead of schedule from the bid to the host, from the 1984 Los Angeles Olympic Games to the 1988 Seoul Olympic Games, and the 1992 Barcelona Olympic Games, which gave good conditions!
In addition, after the 1984 Olympic Games, commercialization was more successful and more money was made, which made the next two Olympic Games more successful! In addition, after the 1990s, the economies of developing countries are slowly strengthening, for example, the BRIC countries hope to show their national strength to the world, and the result is that the number of countries and cities that bid for the Olympic Games has become quite large! The bidding city has become more, naturally the Olympic Committee has come up, it has occupied a dominant position, on the one hand, the requirements for the venues are higher, the second aspect, its own share ratio is also higher, for the host country, it means that the cost increases, especially for developing countries, the city construction itself may not be so perfect, there are not so good venues, so a lot of things have to be built in a big way, the initial investment is a lot, the biggest head of the cost is the construction of related venues, Just like the construction of the bird's nest in the 2008 Beijing Olympic Games, it cost 420 million US dollars, equivalent to nearly 3 billion yuan, and so many projects, can not build a bird's nest is enough, there are large and small, a calculation, billions of dollars on the down, not only the Olympic Games, the World Cup is the same, the general country to half the World Cup, the construction of venues about cost a few billion to a dozen billion, Brazil World Cup used 15 billion, Next year's World Cup in Qatar is said to cost 220 bills, which ,,, people say they need to get a lot of air conditioning in the hot place!!!
In addition to the construction of the venue, there is a large cost, that is, the construction of the Olympic Village, tens of thousands of people, but also have supporting facilities, this cost is also very high, but also to issue condoms, this next issue is dedicated to talking about!
Various venues, Olympic villages, supporting settings, the cost is very large!
The host country is also aggrieved in his heart, you say that I have built so many things for what to use, after the completion of the demolition, you say what to do!
The Olympic Committee also said bitterly, Hey, you can hold a concert, have a sports event, and move the whole people! The Olympic Village can be sold as a commercial house! But is this really the case?
Let's say that our 2008 Beijing Olympic Games this commercialization is still doing a very good job, after the Olympic Village into commercial housing decisively sold, now is also the soaring house prices!
But after the Rio Olympics, the Tokyo Olympics originally wanted to sell the Olympic Village, but they didn't sell it, which is a bit embarrassing!
You say the venue, now the bird's nest is still very good, there are often events, there are events held, but the Athens Olympic Games and rio Olympic Games after the venues are almost idle and abandoned, not to say that idle will not cost money, but also have to maintain ah, a year is a lot of money to build into!
After the financial crisis, the world economy is sluggish, and now there is a epidemic, when the head is drunk, huge investment and future uncertainty, so everyone is very cautious in the Olympic bid, the 2024 Olympic Bid is the last left in Paris and Los Angeles, and finally the Olympic Committee looks at it, don't go, all arranged! This is also an unprecedented one-time squeeze of two!
Looking at the dynamic game of the long history of the Olympic Games, the Olympic Committee side is obviously in a disadvantage stage, so divide into this side to give a little more!
Now the broadcast rights are ready to be distributed to the host country 49%, the construction of the venue has also reduced the requirements, the main purpose is to be able to do it, not to renovate, not to renovate, to the next city to do it, as long as it can be done, it is good to discuss! It is also with these games and commercialization, with these incentives in terms of interests, but also allow the Olympic Games to develop faster! Now the Olympic Games this IP is also getting bigger and bigger, commercial value is also rising, of course, commercialization is also inevitable there is corruption, whether it is the Olympic Committee or the World Football Federation, like the 2018 World Football Federation burst out of the decades of senior officials up to more than ten years of corruption, so business does not have obvious black and white and right and wrong, but a variety of games and checks and balances between interests, we see when so many athletes wonderful events, behind this there is also the same wonderful business logic!
Well, the business logic behind the Olympics is roughly here! Stay tuned for more exciting business logic!
Northern Taishanhui business thinking is simply that after you see a business event, you can understand the logic and thinking mode behind it, so as to make your judgment. 5 original pieces of content
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