Decent Essays
The United States Olympic Committee (USOC), initially named the American Olympic Association, was formed in 1896. Members of the committee sought to provide assistance to United States Olympic athletes with training and other needs. As the USOC is not government funded the committee has relied heavily on corporate funding and private donations (“Team USA,” 2011). However, over the years while the continued appeal of the Olympic Games remained, the increased cost of housing, clothing, and caring for U.S. athletes along with other professional sports vying for corporate sponsorship, made obtaining funding difficult. Thus, the USOC was challenged with persuading corporate benefactors that investing in the Olympic Games was a lucrative and…show more content…
1). Moreover, companies realize that sponsorship is a business and are not inclined to donate money for altruistic pursuits (Johnson, 2011). As a result, companies expect tangible returns on their investment (Johnson, 2011).
Companies look for a return on their investment in various markets. The most common in recent years is partnerships with sporting events. For example, Blockbuster and Budweiser sponsor bowl games and race car events (Johnson, 2011). However, the trend is shifting to ownership. Disney, for example, owns a professional hockey team called the Mighty Ducks (Johnson, 2011). While the revenue stream corporations generate by affixing their name to a sporting team is attractive, the International Events Group (IEG), a company that monitors corporate sponsorship, predicts companies are being drawn to sponsor individuals linked to specific events. For example, Hanes Hosiery paid $1 million to sponsor Tina Turner’s concert tour (Johnson, 2011). Moreover, according to IEG there is unlimited growth potential for corporate sponsorship (Johnson, 2011). Finally, at the end of the 1990’s, over 6,000 corporations participated in some form of sponsorship (Johnson, 2011).
The reason for the rise of corporate sponsorship is attributed to the need for companies to explore alternatives to advertising. As
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