Document From the International Olympic Committee

Office of Public Information

Chateau de Vidy, 1007 Lausanne, Switzerland

OVERVIEW

Sponsorship has become a major source of revenue for the Olympic Movement, now accounting for some.40% of the overall marketing programme. Sponsorship programmes operate on two levels.

• on an international basis, with the worldwide sponsorship programme known as TOP (The Olympic Programme)
• on a national basis, with local programmes of the Organising Committees and the National Olympic Committees.

All sponsorships, whether national or international in scope, are designed to meet the following marketing objectives established by the IOC:

• ensure the independent financial stability of the Games and the Olympic Movement
• create a long-term structure which ensures continuing and substantial support over many years
• guarantee equitable revenue distribution throughout the Olympic Movement
• prohibit "uncontrolled commercialisation" of the Games.

Sponsorship not only provides valuable financial resources to the Olympic Family, but also vital technical support for the organisation of the Games and the general operations of the Olympic Movement. This support is provided in the form of products, supply of services, technical support and staff deployment. Additionally, the publicity generated by Sponsors' advertising activities increases public awareness and support for the Games and the athletes.

The revenue from the TOP Programme is shared between the IOC, the 0COGs and the NOCS. With TOP III, approximately 70% will go to the 0COG5 of the Winter and Summer Games and the host NOCS. The reinforcing 30% is allocated to the participating NOCS (20%) and to the IOC (10%).

It is a measure of the programme's strength that all 197 NOCs are participating in TOP III.

THE TOP PROGRAMME

The IOC Worldwide Sponsorship Programme

The TOP Programme was created by the IOC in 1985 to establish a more diversified revenue base for the Games and the Olympic Movement. All participants are multinational corporations that are worldwide leaders in their industry. TOP sponsor companies (1) receive exclusive marketing rights and opportunities within their designated product category, (2) can exercise these rights on a worldwide basis, and (3) can develop marketing programmes with the IOC.

The advantages of the programme include, in addition to the exclusive, worldwide marketing opportunities:

• use of all Olympic marks as well as appropriate Olympic designations on sponsor's products,
• exclusive hospitality opportunities at the Games,
• direct advertising opportunities, including preferential access to broadcast advertising,
• on-site concession/franchise and product sale/showcase opportunities,
• ambush marketing protection.

The TOP Sponsorship Programme is reinforced by a global advertising and PR support programme in international print and electronic media that recognises the contribution of sponsors to the Olympic Movement.

The TOP I Programme (1995-1988), developed by the IOC's marketing agency, ISL, attracted the support of nine multinational corporations and generated approximately US$95 million. Twelve corporations comprised the TOP 11 Programme (1989-1992), including eight of the original TOP I sponsors. TOP II generated some US$175 million. The TOP III Programme (1993-1996) will have ten sponsor participants and will generate over US$300 million in funds, goods, and services. A smaller number of sponsors does not mean a reduction in financial and corporate support for the Games. During the upcoming Olympics, fewer companies will contribute more to support the Olympic Movement, the Games and the athletes than at any other time in history.

ADDRESSING "COMMERCIALISATION"

Given the increasingly important role of sponsorship throughout the Olympic Movement, a major challenge for the IOC is to ensure that priority is given to sports interests, in accordance with the Olympic Charter. To this end, the IOC has taken a leadership position by :

• ensuring that there is no venue advertising at the Games. The Olympic Games are the ONLY major sporting event in the world where there is no advertising in the stadium or on the athletes.
• reducing the total number of major corporate sponsorships. Approximately 70 companies Will participate as worldwide and national sponsors and suppliers of the 1994/96 Olympics versus more than 600 for the 1976 Montreal Games.