Unit 7 – Page 1
Beijing 2008 Olympic Games
UNIT 7 - ARE THE OLYMPIC GAMES AN EXAMPLE OF
SPORT COMMERCIALISATION?
Discuss the following questions. For any one of them, prepare a one-minute presentation to your
classmates. You are encouraged to think deep about the questions.
The National Broadcasting
Corporation(NBC) paid ￡415
million for the US broadcasting
rights of the 2000 Sydney
Olympic Games. If you were
the director of the NBC, why
were you willing to pay such a
big sum of money for the
broadcasting rights?
Cathay Pacific and Credit
Suisse will sponsor the
world-renowned 2008 Cathay
Pacific/Credit Suisse Hong
Kong Sevens(a rugby event).
From Cathay Pacific’s point of
view, can you tell why they
choose to sponsor a rugby
event instead of advertise on
TV?
In 2000 the American
basketball player Shaquille
O’Neil signed a contract with
the Los Angeles Lakers that
was to earn him ￡52 million
in the following three years.
Can you tell why the Lakers
were willing to pay such a big
sum for a basketball player?
When compared with 20 years
ago, watchers of TV sports
programme have increased a
lot, so has the time they spend
on watching sports programme.
Can you tell why?
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Personal, Social and Humanities Education Section,Education Bureau
Unit 7 – Page 2
Beijing 2008 Olympic Games
7.1 FACTORS & ELEMENTS OF SPORT COMMERCIALISATION
The boxes below show the elements and factors of sport commercialisation. Please draw arrows to link the boxes up to show how sports become
commercialized.
Elements & factors of sport commercialisation
TV has become popular.
Paid sports channels have
become popular.
Athletes and teams have
more income.
Business sector is willing to
pay more to sponsor
sporting events.
People have increasing
income and leisure. They
need more entertainment.
Sport product suppliers pay
top athletes and teams more
to advertise their products.
Athletes and teams have
better performance.
Top athletes attract many
spectators. Their salaries
increased a lot.
Athletes and teams have
better equipment and
training.
Sporting events become
more attractive to
spectators.
Sports spectators increased
a lot.
Many people buy
licensed products of top
sporting team.
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Personal, Social and Humanities Education Section,Education Bureau
Beijing 2008 Olympic Games
Unit 7 – Page 3
7.2 WHAT IS SPORT COMMERCIALISATION?
1.
Sport commercialisation does not have a very clear meaning.
But generally speaking, it is a process that has at least the
following two features:


sport as a commodity that is sold; and
sport as an occupation
7.3 FEATURES OF OF SPORT COMMERCIALISATION
1.
Sport as a commodity that is sold - In commercialized sports, the following things are sold:
A.
Broadcasting right - Big sporting events like the Olympic Games are
the most popular and most watched events in the world. Broadcasting
companies are willing to pay huge sum of money to buy the rights for
the transmission of those events.
B.
Sponsorship - Some companies are willing to sponsor sporting events, athletes or teams in
return of some benefits. Examples of these benefits include naming the sporting events after
the sponsors’ name, a positive image of the sponsor in the public and more chances for the
sponsors to showcase their products. Sometimes sponsorship means more than giving money.
In the case of the Olympic Games, it includes providing services, technologies and personnel
to help organize the Games.
C.
Licensed products - Spectators at the venue of the Olympic Games
are certain to buy some souvenirs which would remind them of the
Olympics. Many football fans are willing to buy the uniforms of the
football team they like. These souvenirs and uniforms are examples
of licensed products. The organizers of sporting events and sport
teams sell the rights to produce these licensed products to make profit.
D.
Ticket - Ticket sale is still an important income source to sporting
teams, especially those have a lot of fans. That’s why some
world-class soccer teams are building bigger and bigger stadiums to
house more spectators.
Admission
ticket
Personal, Social and Humanities Education Section,Education Bureau
Beijing 2008 Olympic Games
Unit 7 – Page 4
2.
Sport as an occupation - In commercialized sports, how does an athlete earn his / her
income?
A.
Income from salary - Ever since television has become popular, sport
has become an important entertainment. Famous athletes have become
stars who attract a lot of TV watchers. They can earn millions of dollars
or more a year.
B.
Income from advertisement - Star athletes are paid to carry many
advertisements on their clothes and sportswear. They are also paid by
companies to use their equipment or to wear their sportswear to advertise
their products to millions of viewers.
Based on the above criteria, can you name an example of
highly-commercial sport event? Give evidence to support your answer.
Evidence may include:
Is this event sponsored? If yes, who?
Is this event broadcasted in Hong Kong? If yes, who?
Can you name some licensed products of this event?
How much do its tickets cost?
Can you name some players who compete in this event?
How much do they earn?
Besides salary, how do they earn income?
(Above questions for reference only)
Personal, Social and Humanities Education Section,Education Bureau
Beijing 2008 Olympic Games
Unit 7 – Page 5
7.4 ARE TODAY’S OLYMPIC GAMES COMMERCIALIZED?
The Olympic Games of today is just a
business called professional sports. The
commercialisation of the Olympics
destroys all good values that have
been connected to them ……
The Olympic Games are not getting
commercial. I would be very
surprised by what you say about
the commercialisation
of the Olympics ...


There is no clear line that divides a commercial sport event from a non-commercial one. While
most people believe that the Formula One Racing and the English Premier Soccer League are
examples commercial sport events, people still debate whether the Olympic Games are
commercialized or not. What is your opinion?
Identify the commercial and non-commercial elements of the Olympic Games in last 20 years.
The knowledge about sport commercialisation you learn, and the following sources are helpful
to you.
Source:
China radio International(2006-10-24): IOC Chief Hits Back at Commercialisation Criticism
http://english.cri.cn/2886/2006/10/24/165@154140.htm
Beijing TV : Fund(s) & Games: Serious business
http://www.btv.org/btvweb/yzlm/2006-07/10/content_72719.htm
The Official website of Beijing 2008 Olympic Games : Marketing Plan Overview
http://en.beijing2008.cn/bocog/sponsors/n214077622.shtml
IOC : Olympic Marketing Fact File : p.66
http://multimedia.olympic.org/pdf/en_report_344.pdf
Personal, Social and Humanities Education Section,Education Bureau
Beijing 2008 Olympic Games
Unit 7 – Page 6
Commercial elements:
1. The Beijing 2008 Olympic Games sponsorship is divided into different
classes, each has its own benchmark price.
2. There are different licensed products such as garments, coins, stamps and
badges.
3. Broadcasting rights are sold. For example, in Hong Kong the TV
broadcasting right of the Beijing 2008 Olympic Games goes to TVB and
ATV, while the new media right goes to Cable TV.
4. Many athletes are professional. They earn income by sport or sport-related
ways, for example, hurdler Liu Xiang.
5. The International Olympic Committee has a marketing programme for the
Olympic Games.
6. Ticket generally accounts for 11% of an Organizing Committee’s income.
Non-commercial elements:
1. No advertising or commercial message is visible to the venue spectators
or to the broadcast audience.
2. No advertising or commercial messages are permitted on the venue,
athletes, spectators, coaches, officials or judges.
3. Images of Olympic events are not allowed to be broadcast with any kind
of commercial association.
4. The number of corporate sponsorship is limited.
5. Commercial associations with tobacco products, alcoholic beverages
(other than beer and wine) are not allowed.
6. The Games do not award winner with money.
7. Around 94 per cent of the revenues from the IOC's marketing program is
used to assist developing countries and the organizing committee of each
Olympic Games
Personal, Social and Humanities Education Section,Education Bureau