Fill the Seats!

Thousands of fans attempt to get tickets to some Olympic event, they are told they can't get any tickets. They watch on TV instead, and on TV they see a lot of open seats. This has to be the most frustrating feeling for a fan. Unfortunately many fans have felt this disappointment and anger in this years 2012 Olympics in London. 

There are a few reasons for the outrage over empty seats. One reason is the surprising position of Great Britain in the medal count. The strong play from Great Britain has raised demand for tickets. In fact, 2.5 million people a day are actively trying to get tickets for events. Fans have been frustrated with the online ticket system which has not been able to keep up with the unsuspected spike in demand. Another reason for the outrage over empty seats, is the fact that the seats are empty! Most of the empty seats, which have been obvious to viewers, are blamed on the lack of use from those who have allocated seats to them. These people include Olympic officials, sport federations, national Olympic committees, athletes and the media. 

To fix the problem of empty seats, London Olympic organizers have taken action. They have asked those who received allocated tickets to give them back if they are not using them. The London Olympic organizers can then make those tickets available to the public. The Olympic organizers have been successful in this approach. They have reclaimed thousands of tickets that were allocated out, including 2,400 tickets from athletes.

The next summer Olympics in 2016 will take place in Rio de Janeiro. The Brazilian organizers are promising full venues. Organizing committee CEO Leonardo Gryner said that Rio "can do better than London" in making sure that seats are not left vacant. They plan to use a more flexible ticketing approach to fill the stadiums. 

Final Thought

Filling seats is important to enhance the atmosphere at an event. Filling seats is also important for fans watching on TV. Empty seats take away from a TV viewers experience because fans can see empty seats as a sign the the event is not meaningful. Hopefully in the future Olympics, the empty seat problem will be taken care of.

 @dmrosen7

Dollars & Sense - Gabby Douglas

We have all seen it before.  We may not be able to describe what it is, but we know it when we see it.  And boy, does 16 year old Gabby Douglas got it. 

Throughout the London 2012 Olympics thus far, Douglas has wowed the crowds and TV audiences with her compelling story, wide smile, and two gold medal performances.  The details should be spared because if you don’t know the story, then you need to watch the replays of the recent events.  My words could not do this feat the justice it deserves.  This improbable run to become an Olympic gold medalist will vault Gabby Douglas to be one of the most sought after Olympians for brand endorsements.

The all-around women’s gymnastics gold medal may be one of the most prestigious medals in the Summer Olympic Games.  Winning the gold is winning a permanent spot in the hearts of Americans everywhere.  Gabby now joins the big time American names like Mary Lou Retton and, more recently, Nastia Liukin. 

We know about the marketing successes of both Retton and Liukin, and Gabby Douglas surely isn’t too far behind.  Prior to the London 2012 Games, Douglas signed a deal with P&G to be part of their “Raising an Olympian” campaign.  Within hours of winning the gold medal, Douglas had a deal in place with Kellogg’s and she is set to appear on the boxes for Corn Flakes. 

The endorsement dollars shall be plentiful for Douglas.  ESPN’s sports business reporter Darren Rovell (it feels kind of odd saying that) tweeted that historically the all-around gold winner sees around $2 million in endorsements.  There have also been reports and estimates on Forbes that pin a similar number to gold medal success.

With Nastia Liukin not qualifying for the London 2012 Games and the early retirement of Shawn Johnson, the door is wide open for Gabby Douglas.  These Games were supposed to be for Jordan Wieber, but Gabby stole the show in stunning fashion.  Aside from possibly the Phelps-Lochte “rivalry”, Gabby may have created the most buzz thus far.

As for whether the dollars make sense, they most certainly do.  The short term buzz that Gabby Douglas can bring to a brand is something that can boost a brand of any size.  The momentum that she has going into these deals is immense and cannot be ignored.  Gabby has brought herself to a level that can break through a lot of clutter.  If I were a company with money to spend, I’m jumping on the Gabby Douglas bandwagon faster than you can say “why is ESPN covering Tebow when this girl is making international headlines.” 

Gabby Douglas is a star.  She very well may be able to hold that star power into the 2016 Rio de Janeiro.  A four year stranglehold of a very special marketing category is an instance that is rarely seen.  Gabby Douglas’s brand is strong, strong enough to help even the biggest brands in the United States. 

The Debate

Do you agree with NBC’s decision to tape delay events at the London 2012 Olympics in order to show them in primetime? (Current sidebar vote is all tied up!)


Kevin Rossi
This is probably the biggest debate that there has been in a while which makes sense since the Olympics are the biggest sporting event that we have had in a while.  Many disagree with NBC’s decision to run with tape delays for major events instead of showing them live.  To answer the question for The Debate this week, I think we all have to take our biases towards social media out of our minds for a second.  Most of us rely on social media for all of our news, but to the dismay of many of us, a lot of people do not.  They wait for the paper, they wait for their friends to email them, and yes, believe it or not they wait for the Olympics on tape delay (*gasp*).  A big point here is that it isn’t as if NBC is seeing terrible ratings for their primetime events.  NBC is seeing record ratings, consistently in the 20s, which is right around a solid NFL Playoff game.  They aren’t spinning into a black hole with their decision.  Even if people know the winners, I’m sure that a good amount still tune in (that would be interesting research to see).  Even if that number is 50/50, that is good for NBC.  I think that those of us who rely heavily on social media tend to grossly overestimate how much others rely on it.  With that said, there are still a lot of people going into the primetime showing with no knowledge of the winners (sure NBC has jeopardized that with their promos and they have issued statements saying that the issue will be addressed).  I know, it’s crazy.  

A big reason that NBC uses the tape delay is for the advertisers.  It is much less risky to show the events in primetime; think about it.  If NBC showed the big medal contests during the day when they are run, who knows how many people would turn away from their work to watch.  You could ask how many people would watch in primetime after they know the results, but we know that answer.  It’s tried and true.  NBC needs to be able to guarantee some kind of consistency for for their advertisers to spend the money (about $1 BILLION in total for the London 2012 Games).  With that kind of money being tossed around, NBC cannot play it risky.  They will take the PR hit in the short run while making their advertisers happy.  If you’re not happy about the commercialization of the Olympics, then you’ve been hanging out on some mystery island somewhere with Tupac Shakur (except you’ve been there since about 1984).

Seth Breeden
Yes, I disagree with NBC’s decision to tape delay events at the London 2012 Olympics in order to air them in primetime.

Personally, I find that I have very little interest in watching events of which I already know the outcome. I don’t find much joy or entertainment in doing so. I already know what’s going to happen, so why watch? I don’t watch the Olympics because I think swimming looks cool. I watch events because I have a desire to see who wins; to learn of the outcomes as soon as I possibly can. Watching an event after I already know the results is just a waste of my time. Instead, I can be doing what I enjoy doing most...following events and sporting news live.

For someone like myself (someone who avidly follows sports and is a heavy user of social media), it is nearly impossible to avoid learning of the event results before having a chance to watch it during primetime. Also, just because NBC wants to delay the general public from consuming the Olympics doesn’t mean that other media outlets, such as ESPN, are going to stop reporting live news (I mean, that’s kind of exactly what they do...why would they stop?).

So, thanks NBC, for nothing.

Drew Rosen
The NBC tape delays have come under much scrutiny during the 2012 London Olympics. With the world of social media, the world is connected like it has never been before. The negative with a world that allows information to be spread at incredible speeds, is sometimes (rarely) people do not want to know what happens. This is the case with the Olympics. It is often difficult for fans to sit down and watch an event that they already know the results. For this reason, I am undecided on the debate question.

Although I find it disturbing as a fan not to be able to watch some events live, I understand NBC’s reasoning. If NBC did not reek positive benefits from tape delaying the events, then I would have a problem with them doing it. This is not the case. NBC has received record TV ratings from the tape delays. If fans were so offended and cared so much about the tape delays, they wouldn't watch.

For me this is a debate of my fanhood versus my ability to recognize good sport business. This is terrible for fans but great for business. I would have to say that NBC’s decision to tape delay has been successful.

Bryan Fyalkowski
For once, it is not ESPN’s fault. For the first time in a long time, I have found myself defending the way ESPN covers sports. NBC has been delaying the Olympic events in the United States in order to show them in primetime. Therefore, the general public is frustrated because they find out the results hours before they are able to watch the events on television. After the initial frustration towards NBC, people have taken to blaming other sports outlets for ruining the news, even though they are just doing their job.

Outlets like ESPN, Yahoo! and even Twitter are going to report breaking news, whether it is broadcast on television or not. Times are different than they used to be; people cannot avoid delayed sporting events as they could in the past. You could record a game on VHS or DVR and avoid hearing the news until watching the evening news or reading the newspaper the next morning.

But now, with the emergence of the internet and widespread communication, people can get information almost immediately. In the case of the Olympics, I disagree with what NBC is doing, but I can understand why they are doing it. At the time of the actual events taking place in London, the United States would see the events in the afternoon, during the time of day where television ratings are the lowest in the country.

By showing the events in prime time, even though the majority of the fans know the outcome, NBC has been receiving great ratings. As a sports fan it is tough to face, but it is the correct business decision for the network. Unfortunately for the United States, the world actually does not revolve around our country. Sad but true. We cannot always have it our way and the Olympics has been one instance of that.

The Olympic King

With winning Olympic medal number 19 yesterday, Michael Phelps is now the most decorated Olympian in history.  He says that the London 2012 Games will be his last although Phelps and his mother Debbie do not seem to see eye-to-eye on that one (and even though Phelps is only 27 and he would only be 31 in Rio 2016).  

Olympic-sized success tends to lead to Olympic-sized endorsements which Phelps has seen his fair share of over the years.  The only other American swimmer who seems to even put a dent in Phelps' endorsement fortune is Ryan Lochte.  

The question here is how sustained will Michael Phelps' endorsement career be?  With Shawn Johnson (retirement) and Nastia Lukin (did not qualify) not participating in the London 2012 Games, Phelps is easily the biggest American name in the field and probably would have been even with those two in the field.  

If Phelps is set on not participating in the 2016 Summer Games in Rio, then will companies still look for him to endorse their products?  I would tend to lean yes although his track record out of the pool is far short of a world record.  

How do you think the business world will respond to the most decorated man in Olympic history even if he doesn't participate in 2016? Discuss.

Dollars & Sense - London 2012 Olympics

The time has finally come. 

It is the week of the 2012 London Summer Olympic Games.  This week we set aside the 8 years of politics that it took to not only secure the Games but to make it all happen.  This week we set aside the controversy and bad blood that we saw with Saudi Arabia contemplating banning their women from the Games (they ultimately decided to allow women to participate).   Finally, it is time for the glory of athletics in its finest and most prideful form. 

 

London 2012 By the Numbers

$15,000,000,000 is the estimated cost of the London 2012 Olympic Games.

$2,500,000,000 was the first proposed cost of the London 2012 Olympic bid.

Hundreds of millions of people will watch from their home countries.

8,800,000 tickets were to be sold for the Games.

700,000 (up to) volunteers (Game-Makers) will be needed to put on the Games.

10,000 (over) athletes to compete for the gold.

995 euros was the starting price for tickets to the opening and closing ceremonies which is equivalent to a little over $1200. 

302 events to medal in.

269 female athletes will compete for the United States.

261 male athletes will compete for the United States.

205 countries will compete for gold.

110 medals is the number of total medals the United States won in Beijing in 2008.

38 different venues will be used for Olympic competition.

36 of those 2008 US medals were gold.

17 days of competition.

11 official sponsors of the Olympic Games.

2 is the place that the United States finished in Beijing in 2008.

1 is what the United States Olympic team will strive for in London 2012.

 

Olympic Sponsors By the Numbers (via The Guardian)

Company            Type      Value, $m, total known deal       £m         

Coca Cola             Worldwide          100         64           1

Acer                       Worldwide          100         64           2

Atos                       Worldwide          100         64           3

GE                          Worldwide          100         64           4

Dow                       Worldwide          100         64           5

McDonald's        Worldwide          100         64           6

Omega                 Worldwide          100         64           7

Panasonic            Worldwide          100         64           8

P&G                       Worldwide          100         64           9

Samsung              Worldwide          100         64           10

Visa                        Worldwide          100         64           11

Adidas                  London 2012 Olympic Partners   63           40           1

BMW                     London 2012 Olympic Partners   63           40           2

BP                           London 2012 Olympic Partners   63           40           3

British Airways  London 2012 Olympic Partners   63           40           4

BT                           London 2012 Olympic Partners   63           40           5

EDF                        London 2012 Olympic Partners   63           40           6

Lloyds TSB           London 2012 Olympic Partners   63           40           7

Adecco                 London 2012 Olympic Supporters             31           20           1

ArcelorMittal     London 2012 Olympic Supporters             31           20           2

Cadbury               London 2012 Olympic Supporters             31           20           3

Cisco                      London 2012 Olympic Supporters             31           20           4

Deloitte                  London 2012 Olympic Supporters             31           20           5

Thomas Cook     London 2012 Olympic Supporters             31           20           6

UPS                        London 2012 Olympic Supporters             31           20           7

Aggreko               London 2012 Olympic Providers and Suppliers    15           10           1

Airwave               London 2012 Olympic Providers and Suppliers    15           10           2

Atkins                   London 2012 Olympic Providers and Suppliers    15           10           3

Boston Cons.     London 2012 Olympic Providers and Suppliers    15           10           4

CBS Outdoor      London 2012 Olympic Providers and Suppliers    15           10           5

Crystal CG           London 2012 Olympic Providers and Suppliers    15           10           6

Eurostar               London 2012 Olympic Providers and Suppliers    15           10           7

Freshfields BD   London 2012 Olympic Providers and Suppliers   15           10           8

G4S                        London 2012 Olympic Providers and Suppliers    15           10           9

GSK                        London 2012 Olympic Providers and Suppliers    15           10           10

Gymnova            London 2012 Olympic Providers and Suppliers    15           10           11

Heathrow Air.    London 2012 Olympic Providers and Suppliers    15           10           12

Heineken UK     London 2012 Olympic Providers and Suppliers    15           10           13

Holiday Inn         London 2012 Olympic Providers and Suppliers    15           10           14

John Lewis          London 2012 Olympic Providers and Suppliers    15           10           15

McCann World  London 2012 Olympic Providers and Suppliers    15           10           16

Mondo                 London 2012 Olympic Providers and Suppliers    15           10           17

Nature Valley    London 2012 Olympic Providers and Suppliers    15           10           18

Next                      London 2012 Olympic Providers and Suppliers    15           10           19

Nielsen                 London 2012 Olympic Providers and Suppliers    15           10           20

Populous             London 2012 Olympic Providers and Suppliers    15           10           21

Rapiscan Sys.     London 2012 Olympic Providers and Suppliers    15           10           22

Rio Tinto              London 2012 Olympic Providers and Suppliers    15           10           23

Technogym        London 2012 Olympic Providers and Suppliers    15           10           24

Thames Water  London 2012 Olympic Providers and Suppliers    15           10           25

Ticketmaster      London 2012 Olympic Providers and Suppliers    15           10           26

Trebor                  London 2012 Olympic Providers and Suppliers    15           10           27

Westfield            London 2012 Olympic Providers and Suppliers    15           10           28

What does is all mean?

The Olympic Games are truly a mega event in every sense of the phrase.  No other event in the world brings countries together in the way that the Olympics do, not even the World Cup.  The Olympics are huge on every single level; the pinnacle of athletic competition and certainly the pinnacle of sports business dollars.  However, as Biggie Smalls said so eloquently, “Mo’ Money Mo’ Problems”.  There is a great deal of controversy that comes with the Games.  Terrorist threats, country-wide debt, frivolous government spending, countries making political statements, boycotts, athletes changing countries, athletes doping, spectator safety and security, transportation, lodging, venue construction, ambush marketing, the list goes on and on almost endlessly.  Yet in spite of it all, there is something perceived to be so graceful and so pure.  The Olympic Games are a grand spectacle and marathon event that the entire world will tune in to see.  London 2012 Summer Olympic Games will begin this Thursday July 27 with the Opening Ceremony.  Enjoy, World.

Click here for a link to the full London 2012 schedule (day by day).

Quick Hits

You all know that the I-95 SportsBiz staff is always looking to give the people what they want. As requested, here are your Quick Hits for the week.


The New Yorker’s sports section The Sporting Scene featured a Gladwell-esque piece looking at whether birthplace effects chances of going professional.

Dan Wetzel continues his hold on the Penn State situation, this time coming for former PSU President Graham Spanier.

Tiger Woods criticizes course conditions early in the week going into The Open Championship at Royal Lytham.

Reds prospect Billy Hamilton is really really fast.

A survey conducted by Quinnipiac University favors the renaming of Beaver Stadium in honor of Joe Paterno.

Eagles quarterback Mike Vick says he was “better at reading dogs than defenses” in an interview with USA Today.

A menacing fan (or a menacing individual who is NOT a fan) throws tacks on a road used for the Tour de France route.

A note of caution to all our readers who train for various sporting events outdoors: Look out for angry otters!

If you love basketball and you love analytics, then you have to check this out!

The Poynter Review takes a look at ESPN’s coverage of the Freeh Report.

Deadspin breaks down how the Flyers’ offer sheet to Shea Weber gives a big middle finger to the NHL CBA.

Was letting Jeremy Lin walk to Houston a good idea by the Knickerbockers?  Grantland weighs in.

Troy Polamalu admits to hiding injuries to get back into games.

After some command issues, the Diamondbacks are sending their star prospect, Trevor Bauer, back to Triple A.

Jeff Caple writes a piece about The Incline at the London 2012 Olympics.

Bud Selig says that Major League Baseball is in no rush to put ads on jerseys.


How MLB teams are beginning to find diamonds in the rough as late-inning flamethrowers.

Not necessarily the caliber of a Jeff Passan piece, but this ESPN.com feature on Pittsburgh Pirates hometown hero Neil Walker does the trick.