Greece has found itself squarely stuck in an economic quagmire since Beijing hosted the Olympic Games in 2008, but the most tangible Grecian contribution to the modern world has gone quite in the opposite direction.
The value of the Olympics brand has grown by a staggering 87 per cent to $47.6 billion since the Beijing games, a study by London-headquartered brand valuation firm, Brand Finance, has found.
That makes it the second most valuable brand in the world, behind technology behemoth Apple, which is valued at $70.6 billion, and much larger than any of the major Olympics sponsors including McDonalds, Samsung, GE and Coca-Cola or any other brand of Greek origin. It is, for instance, worth 134 times more the than the National Bank of Greece, worth only $354 million.
| MORE THAN JUST SPORT How the Olympics compare against major global brands | ||
| Global 500 Rank | Brand |
Brand value
$ million |
| 1 | Apple | 70,605 |
| N/A | The Olympics | 47,569 |
| 2 | 47,463 | |
| 3 | Microsoft | 45,812 |
| 4 | IBM | 39,135 |
| 5 | Walmart | 38,320 |
| 6 | Samsung | 38,197 |
| 7 | GE | 33,214 |
| 8 | Coca-Cola | 31,082 |
| 9 | Vodafone | 30,044 |
| 10 | Amazon.com | 28,665 |
| OLYMPICS SPONSORS | ||
| 18 | McDonald’s | 22,230 |
| 94 | Panasonic | 9,233 |
| 136 | Visa | 7,087 |
| 292 | Dow (2010 result) | 3,061 |
| 364 | Acer (2011 result) | 2,982 |
| N/A | Atos | 2,040 |
| 453 | P&G (2009 result) | 1,421 |
| Source: Brand Finance | ||
The surge in the games’ value has been on the back of revenue, broadcasting and sponsorship growth, the study established, after valuing every component that operates under the Olympics brand using the International Olympic Committee’s (IOC’s) financial statements.
Since Beijing, total revenue and broadcasting revenue have grown by 38 and 51 per cent, respectively, with the latter contributing two-thirds to the IOC’s total income. Sponsorship revenues, on the other hand, have only risen by 10.5 per cent, a probable victim of the economic slowdown.
Yet, sponsors continue to find value in the global sporting event. “P&G (Procter & Gamble) expect to generate an extra $500 million in sales from London 2012, having already generated $100 million from Vancouver 2010 (Winter Olympics),” the study said.
Meanwhile, the $200 million that GE reportedly spent for sponsorship rights covering London and Vancouver may have already been earned back, the study suggested. “GE uses its Olympic links to win big contracts in the host nations, particularly in developing nations such as China (after Beijing 2008) and the upcoming Winter games in Sochi, Russia for 2014,” it added.
The largely untapped emerging nations are being also seen as a future growth driver for the Olympics brand. With Asia contribution only 12 per cent to the event’s total broadcasting revenues, compared to 59 per cent that comes from the Americas, there may be enough room for the $ 47.6 billion brand to expand. And since the IOC’s running costs are less than 10 per cent of revenues, at the end of the current four-year cycle, it is also left with $4.6 billion, most of which will be used to develop sport worldwide.
In contrast, after the big, debt-funded spending spree leading to the Athens Olympics in 2004, Greece today finds itself in the middle of an economic meltdown.
