Brand Finance values Olympics ‘brand’ at $ 47.6 b

The Olympics ‘brand’ is valued at USD $47.6 billion with an 87% increase since the Beijing Olympic Games in 2008 (where it was valued at USD $25.4 billion) according to a new study launched last week by Brand Finance. The Olympics ‘brand’ is the second most valuable brand in the world and beaten only by Apple valued at USD $70.6 billion.

The Olympics ‘brand’ is worth more than all of its major sponsors including Samsung, GE and Coca-Cola. The Olympics is the most valuable brand of Greek origin and worth 134 times more than the National Bank of Greece (worth just USD $354 million). The IOC has running costs of less than 10% of revenue leaving USD $4.6 billion for distribution and investment in sport worldwide.

Brand Finance CEO David Haigh commenting on the latest findings stated, “There is no doubt that the Olympics ‘Brand’ is a formidable revenue generator and has huge value. It has recently been criticised for heavy-handed brand control, however it should not be forgotten that in the current four year cycle USD $4.6 billion has been generated for initiatives to develop sport worldwide. It is also expected to produce a net benefit to the UK economy of more than $25 billion (£16.5 billion).”

In arriving at the brand value Brand Finance valued everything operating under the Olympics ‘brand’ using the International Olympic Committee’s (IOC’s) financial statements. These include revenue from broadcasting, sponsorship, licensing, merchandising and ticket sales. Costs associated with running the brand are minimal leaving vast sums to be invested back into sport.

The Olympics ‘brand’ has seen a huge surge in value since the Beijing Games in 2008. This four year period has seen: Total revenue growth of 38% to USD $5.1 billion; Broadcasting revenue growth of 51% to USD $3.9 billion; Sponsorship revenue growth of only 10.5% perhaps reflecting tough trading conditions in the worldwide recession and broadcasting contributes two-thirds of the IOCs revenue.

The high levels of growth achieved by the Olympics should be sustainable as emerging markets remain largely untapped. Currently Asia accounts for only 12% of broadcasting revenues which compared to the Americas (59%) demonstrates a key area of potential growth for the Olympic ‘brand’.

Sponsors also believe Olympic sponsorship to be a sustainable marketing investment. P&G expect to generate an extra USD $500 million in sales from London 2012, having already generated USD $100 million from Vancouver 2010. GE, who reportedly paid USD $200 million for TOP sponsorship rights covering London and Vancouver, already believe it has earned back its investment. 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.

Brand Finance, the world’s leading brand valuation consultancy, advises strongly branded organisations on maximising their brand value through effective management of their brands and intangible assets. Founded in 1996, Brand Finance has performed thousands of branded business, brand and intangible asset valuations worth trillions of dollars. Brand Finance is headquartered in London and has a network of international offices in Amsterdam, Athens, Bangalore, Barcelona, Cape Town, Colombo, Dubai, Geneva, Helsinki, Hong Kong, Istanbul, Lisbon, Madrid, Moscow, New York, Paris, Sao Paulo, Sydney, Singapore, Toronto and Zagreb.