Governance of the Olympics

The organization of the Olympic Games is entrusted by the International Olympic Committee (IOC) to the National Olympic Committee (NOC) of the country of the host city as well as to the host city itself. The NOC forms, and from then communicates directly with the IOC, from which it receives instructions.

                                              

The Executive body includes: the IOC member or members in the country; the President and Secretary General of the NOC; and at least one member representing, and designated by, the host city. In addition, it generally includes representatives of the public authorities and other leading figures.

From the time of its constitution to the time it is dissolved, the committee must comply with the Olympic Charter, the contract entered into between the IOC, the National Olympic Committee and the host city (Host City Contract) and the instructions of the IOC Executive Board.

The Organizing Committees grow from small organizations of tens of employees to reach several thousand only seven years later. The Organising Committee starts its work with a period of planning followed by a period of organisation which culminates in the implementation or operational phase at Games time.

The main tasks for the Organizing Committees of the Olympic Games are:

To give equal treatment to every sport on the programme and ensure that competitions are held according to the rules of the International Sports Federations (IFs);

To ensure that no political demonstration or meeting is held on Olympic sites;

To choose and, if necessary, create the required installations: competition venues, stadiums and training halls; to arrange for the required equipment;

To lodge the athletes, their entourage, the officials;

To organise medical services;

To solve transportation problems;

To meet the requirements of the mass media in order to offer the public the best possible information on the Games;

To organize cultural events that are an essential element of the celebration of the Olympic Games;

To write the Final Report on the celebration of the Games in the two official languages and distribute it within two years after the end of the Games.

Jacques Rogge, President of International Olympic Committee, quotes "Without the support of the business community, without its technology, expertise, people, services, products, telecommunications, its financing - the Olympic Games could not and cannot happen. Without this support, the athletes cannot compete and achieve their very best in the world's best sporting event."

The Olympic Games are one of the most effective international marketing platforms in the world, reaching billions of people in over 200 countries and territories throughout the world. Support from the business community is crucial to the staging of the Games and the operations of every organisation within the Olympic Movement. Revenue generated by commercial partnerships accounts for more than 40% of Olympic revenues and partners provide vital technical services and product support to the whole of the Olympic Family. Each level of sponsorship entitles companies to different marketing rights in various regions, category exclusivity and the use of designated Olympic images and marks. However, no 'field of play' advertising is permitted. The Olympic Games are the only major sporting event in the world where there is no advertising in the stadium or on the athletes.

How does a company get recognition and advertisement from the Olympics when there is not even any advertisement in the Olympic games stadiums? What is your take on this procedure, Let us know.

Cool and Enlightening Pictures

In reading these two very revealing pictures, one understands that there is a very lucrative market in the Olympics. However, the majority of substantial profits are made by, as one might expect, the body that governs the Olympics, the IOC.


It is interesting to note in the photo above that after the Olympics end, there is an experienced decline in national GDP in all Olympics between ´88 and ´04 in both the year of the Olympics and the following year (the one exception is in Montreal for the year of the Olympics).

Why finances cause trouble

As the Olympics are the largest event in the sporting world, there have been many studies attempting to quantify the finances associated with this mega-event. Cities pay millions of dollars in advance for a mere shot at the glory of being the host. An abundance of new players and tourists means immediate financial gains. However, creating an efficacious infrastructure to help the games run smoothly remains a hefty cost. For these reasons and many more, it is nearly impossible to talk of the financial processes involved throughout the Olympic Games. The following passage offers insight into why this might be the case:

´There is a vigorous scholarly debate over the correct method of evaluating the economic impact of “mega-events,” such as the Olympics.3 It is difficult to disentangle changes in economic growth, employment, inflation, tourism, and other possible effects caused by the mega-event from changes caused by other factors (currency appreciation, fiscal and monetary policy changes, etc.). In addition, certain types of investments related to mega-events, such as the construction of new stadiums, often fail to generate significant economic benefits after the mega-event is over. Plus, it is uncertain if economic activities undertaken as part of the preparation for the mega-event (for example, the construction of new mass transit lines) might not have taken place even if the megaevent had not occurred. Also, impact assessments of mega-events frequently ignore the “opportunity costs” associated with investments made before the event. For example, assessments often do not consider the possibility that the money spent on the new Olympic stadium might have generated greater economic benefits if spent on hospitals or schools. Finally, while the economic gains associated with the construction of new infrastructure are generally calculated, the economic costs associated with the displacement of people and business (for example, in the demolition and construction of new housing for the mega-events) often are not.´´

The passage goes on to admit that there are also benefits to over-exaggerating the potential gains and underestimating costs while trying to secure the Olympic games in your country. However, at this point all we know is why it is difficult to grasp the extent of Olympic Games finances. For example, the total costs for venue would be underestimated initially due to the rise in the price of steel after the bid process. In addition, the Department for Media, Culture, and Sport (DCMS) stated that they would secure finances from the private sector for £738m, which they later state would be inhibited by a ´´lack of identifiable revenue stream´´ (Berman 6). These two instances are two of many that attribute to the difficulties in accurately naming the financial transactions involved in the Olympic Games. The comparison of the pre-games potentials and post-games reality of the Chinese experience in 2008 will hopefully provide a correlation with the London Games in 2012.

Pre-Chinese Expectations vs. Post-China reality
2 Articles: Michael F. Martin-”China’s Economy and the Beijing Olympics”
“China Still Paying for the 2008 Beijing Olympics”

Research shows that Chinese economic gains are doomed!

The post-Olympic economic records of past host cities shows evidence that many times, economic success fail to meet pre-Olympics expectations. A study by the Bank of China shows that 9 out of 12 cities that have hosted the Olympics in the last 60 years experienced declines in average GDP growth rates in the eight years after the Olympics than in the eight years prior. (See graph above for visuals!)

2. However, China still expects short-term and long-term benefits

Short Term:
Attract more tourism, businesses, and investors to China
Counteract potential negative publicity about labor and environmental conditions
Long Term:
Foster economic development

3. Predictions:

New labour laws and promotion of environmentally safe measures to create a “Green Olympics” will enhance China’s image.
Original estimated cost for venue expenses=$1.65 billion
Official venue cost prior to the opening ceremonies= $2 billion
Estimated Cost for all Olympics=Over $40 billion
Olympics will increase Beijing’s economic growth by 5% b/n 2003 and 2009 (seems a little bit ridiculous
Tourism in Beijing will increase to 500,000

Good or bad...The choice is yours?

Reality Pre-Games:
China has invested billions of dollars (over $40 billion!) in sports facilities, housing, roads, mass transit systems, and other infrastructure (water resources, energy, and urban environment.
Specifically...
200 miles of roads were refurbished, two additional ring roads completed, and more than 90 miles of subway and light rail lines were added. Olympic village also to be converted into a modern apartment complex. In addition, the efforts to reduce pollution have a resonating effect.

*With that being said, improving the cities is still a cost the government must pay, which could have been used more efficiently or on other sectors of society such as education. In addition, the Chinese economy is huge and the potential impact of the Olympics is, in fact, very small and may even be a deterrent. Oh and there was a new projection of tourism that it could fall as low as 400,00 during the month of the Olympics, or about the same as the august one year prior.

Reality Post-Games:

Total cost for Olympic games=$70 billion (WHoOoOAAA)
And...China cannot repay its investors.
To help their problem they issued Government bonds. Unfortunately inflation has raised yields and have made matters worse.
The simple reality of the situation is that China, who gravely underestimated the total costs are now indebted to many local governments and infrastructural organizations (e.g. Beijing Capital Highway Development Group co.)

One last point...Remember those 2004 Olympics. They were held in Greece, and we all know how Greece is doing these days. Both Athens and Beijing now have grandiose Olympic stadiums that are bigger than necessary and unused to their potential.


In conclusion, the Olympics surely impacted the public image, prestige and soft power of China, at least briefly. Economically, no substantial gains were made and the inability to effectively harness the infrastructure capabilities have proven to set China back. Such has been the case throughout Olympics in the past.

Will the London 2012 games be different?
What do you think?

History of Modern Olympics

More than 1500 years later, a young Frenchmen named Pierre de Coubertin began the beginning of what we know as the modern day Olympics. Creating the Olympics was no easy task for Pierre de Coubertin he tried a couple times and failed but his final attempt was obviously a success. In 1894, he assembled 79 delegates from 12 countries to attend a meeting in order to reestablish the ancient Olympic games. From the meeting they formed the IOC (International Olympic Committee) and selected Demetrious Vikelas from Greece to be the first president. With a unanimous voting system, everyone was in favor of the new games. Athens was chosen as the new location and the Olympic games and the planning finally began. The first modern Olympic games were in Athens, Greece in 1896 honoring the origins of the ancient Olympic games.


With over 60,000 spectators, the first Olympics in 1896 were a tremendous success. The first winner of the Olympics was from the United States, James Connolly. He won the triple jump with a jump soaring 13.71 meters. Initially, the winners received silver metals when they won. It was not until 1908, when the Olympics implemented bronze, silver and gold metals.


In 1921, the games established a official motto for the Olympics which is still being used today “Faster-Higher-Stronger”. Originally, this phrase was from the Latin words, Citius, Altius, Fortius. 
The Olympic flame is a tradition from the ancient Olympic games. In Olympia, the flame originally was started by the sun and then kept burning until the Olympic games were finished. The flame first appeared in the modern Olympics at the 1928 Olympic Games in Amsterdam.

The opening ceremony happens in a specific order. The procession of athletes is always started by the Greek team. The other teams proceed after in a alphabetical order, which depends on the language of the hosting country. Although, the final team to enter is always the hosting team. 


Sites of the Modern Olympic Games

Summer Games

Year    Site
1896    Athens, Greece
1900    Paris, France
1904    St. Louis, Mo.
1908    London, England
1912    Stockholm, Sweden
1920    Antwerp, Belgium
1924    Paris, France
1928    Amsterdam, the Netherlands
1932    Los Angeles, Calif.
1936    Berlin, Germany
1948    London, England
1952    Helsinki, Finland
1956    Melbourne, Australia
1960    Rome, Italy
1964    Tokyo, Japan
1968    Mexico City, Mexico
1972    Munich, West Germany
1976    Montreal, Canada
1980    Moscow, USSR
1984    Los Angeles, Calif.
1988    Seoul, South Korea
1992    Barcelona, Spain
1996    Atlanta, Ga.
2000    Sydney, Australia
2004    Athens, Greece
2008    Beijing, China
2012    London, England
2016    Rio de Janeiro, Brazil


Winter Games

Year   Site
1924    Chamonix, France
1928    St. Moritz, Switzerland
1932    Lake Placid, N.Y.
1936    Garmisch-Partenkirchen, Germany
1948    St. Moritz, Switzerland
1952    Oslo, Norway
1956    Cortina, Italy
1960    Squaw Valley, Calif.
1964    Innsbruck, Austria
1968    Grenoble, France
1972    Sapporo, Japan
1976    Innsbruck, Austria
1980    Lake Placid, N.Y.
1984    Sarajevo, Yugoslavia
1988    Calgary, Canada
1992    Albertville, France
1994    Lillehammer, Norway
1998    Nagano, Japan
2002    Salt Lake City, Utah
2006    Turin, Italy
2010    Vancouver, Canada
2014    Sochi, Russia


When each of these places was selected they were selected in honor the specific city. Not the country. 
A good example of this is the opening ceremony in Barcelona. The ceremony clearly takes pride in where they come from, and it is pretty obvious it isn't honoring Spain. 

Citation: Sites of the Modern Olympic Games (table). (2011). Columbia Electronic Encyclopedia, 6th Edition, 1.

Ancient History about the Olympics

More than 2,700 years ago the Olympic Games began in Olympia, Greece. Originally the games were a part of a religious festival. Today, many consider the beginning of the Olympic Games in 1896, when in fact the history reaches much further back. The modern day inspiration of the games was formed by the historical games that began in 776 BC.

The games were held to honor Zeus, the king of the gods. He is the god of sky and thunder in Greek mythology. Every four years the at Olympia, the extravagant festival took place. Greeks from all over came to join and take part in the competition. Although Greeks traveled great distances to visit the games, the games were special and not open to everyone.The games were specific to men, boys and unmarried girls. Married women were not allowed into the Olympic Games. Any women caught sneaking in were punished. Although, women could own horses in the chariot race. Unmarried women had their own festival at Olympia every four years. This was the Heraia, held in honor of Hera, wife of Zeus. Unmarried women were allowed to compete in running races. Winners were awarded crowns of sacred olive branches, this was the same for men. As a rule, Greek women did not go in for sport, unless they were Spartans.People pitched tents and slept on rough grounds just to be a part of the event. Of course, the more important visitors and athletes stayed in hotels. The stadium could seat about 50,000 people. The entire facility was hot and overcrowded, and drinking water was scarce. This didn't stop people coming though!

The final part of the games included a feast. Oxen were roasted in a giant barbecue. There was much happening in the area beyond the games, there were traders initiating business, entertainers juggling and acrobats performed. Frequently, politicians made speeches to the crowds.

Obviously the athletes were some of the most important people at the events. Each of the athletes had personal trainers. Before the athletes were able to enter into the games, the athlete needed to swear an oath to Zeus that he had been in training for ten months. The athlete would have to go to the Bouleuterion building to do this. This oath was sworn in front of ten Hellenodikai. These men were the organizers of the games. This oath was done in front of Zeus (the statue). The statue was made entirely of ivory and gold. When finished it sat in the temple on an elaborate throne along with sculptures and paintings of Greek myths and legends. Zeus was the most celebrated statue of ancient times because of its greatness, charm and worth.

One of the most gruesome events was thought to be the pankration or all-in wrestling. Biting and poking people's was officially banned although, some competitors did both. This was because there were hardly any rules. This event was extremely popular. Another big event was boxing. Boxing was also considered pretty extreme. The fighters wore leather gloves and boxers were allowed to continue hitting their opponents even after their opponent was down on the ground. Cheating was highly condemned and punished. Anyone that was caught cheating or bribing had to pay for a bronze statue of Zeus as punishment.