Chapter 8

1. International Sport Governance Chapter 8

2. Chapter Summary • This chapter addressed the Olympic Movement as a model of international sport management. Sport is a global business. In becoming a better sport manager, one must not limit one’s knowledge to the domestic arena. Because we are involved in a global economy, it is important for the sport manager of the future to understand the globalization of sport. The Olympic Movement is probably the best example of this globalization. Specifically, the focus has been on the Olympic Movement, including the International Olympic Committee, the National Olympic Committees, the International Federations, the National Governing Bodies or National Federations, and the organizing committees of the Olympic Games. Specifically, we have described the United States Olympic Movement and considered one of the most developed NOCs in the world. • We have also addressed the role of professional sport leagues in the global community. Mostly the National Football League and the National Basketball Association have focused their interest in exporting their sport and their brand to other countries. Using television and the Internet as their major vehicles have been very successful. Preseason games played oversees have helped tremendously positioning their brands in these foreign territories and increased their popularity.

3. Chapter Summary • Football is a very popular sport played on the six continents but had a hard time in the United States. However, after the success of the 1994 World Cup, football seemed to have a better acceptance in the United States. As a result, a professional league started in 1996. The league has had its struggles but overall has been successful. Women’s soccer also acquired big popularity when the 1999 World Cup was played in the United States. An international professional women’s soccer league started in 2001. The league has not been that successful and it had to cease operations at the end of the 2003 season. • Some sports have a harder time than others gaining popularity and recognition. Sometimes is a lack of financial support, but many times it is a cultural barrier that needs to be crossed. • The Canadian sport system was created by the federal government in the early 1960’s. • After 1970, a number of national sport and multisport organizations came into being, including the Coaching Association of Canada, Hockey Canada, and ParticipACTION.

4. Chapter Summary • Although government funding of sport increased steadily through the 1970s and 1980s, drastic cuts took place in the 1990s when the government was questioning the significance of sport’s contributions to its objectives and in light of the focus on reducing the deficit. • In 2003 sport legislation was changed with the passing of Bill C-54 and the implementation of the Canadian Sport Policy. • The sport system in Canada is based on a bureaucratic structure that is duplicative and competitive, often not providing the best service to athletes or participants. • Changes need to be made in the Canadian system to rebuild the delivery system, educate sport leaders about how to develop physical activity and sport capacity in communities, and establish non-government sport leadership.

5. Olympic Movement and Olympism • Olympism • Philosophy of life, exalting and combining in a balanced whole the qualities of body, will and mind • Seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles

6. Olympic Movement and Olympism • Olympic Movement • The goal is to contribute to building a peaceful and better world by educating youth through sport practiced without discrimination of any kind and in the Olympic spirit, which requires mutual understanding with a spirit of friendship, solidarity, and fair play.

7. Olympic Movement and Olympism • The Olympic Movement includes: • International Olympic Committee • International Federations (IFs) • National Olympic Committees (NOCs) • Organizing Committees of the Olympic Games (OCOGs) • National associations, clubs, and the persons belonging to them, particularly the athletes • Other organizations as recognized by the International Olympic Committee

8. The International Olympic Committee • Characteristics of the IOC • Non-governmental • Non-profit • Headquarters in Lausanne, Switzerland • Considered the supreme authority • Olympic Charter • Codification of the fundamental principles, rules, and bylaws adopted by the IOC • Governs the organization and operation of the Olympic Movement

9. The International Olympic Committee • IOC owns exclusive rights to: • The Olympic symbol • The Olympic flag • The Olympic motto • The Olympic anthem • The Olympic Games

10. The International Olympic Committee • IOC is governed by its members • All IOC members are natural persons and can be active athletes and presidents or senior leaders of IFs • IOC members are representatives of the International Olympic Committee in their countries and not delegates of their countries within the International Olympic Committee. • IOC members are not personally liable for the debts and obligations of the IOC

11. IOC governance • The Session • The supreme body of the IOC • Held at least once per year • Main function is to adopt, modify, and interpret the Olympic Charter • Decisions are final • May delegate powers to the Executive Board

12. IOC governance • The Executive Board • Consists of the IOC president, four Vice-presidents, and ten additional members • All members elected by the Session • Responsible for managing IOC finances, preparing the annual report, submitting names recommended for IOC membership, establishing agenda for IOC Sessions

13. IOC governance • The President • Heads the International Olympic Committee (IOC) • Supervises all activities of the IOC • Nominates special commissions

14. IOC Finance • Marketing Program • Has become the driving force behind the promotion, financial security, and stability of the Olympic Movement • IOC responsible for overall direction and management of the Olympic marketing program • Television broadcast partnerships • Corporate sponsorships • Ticketing • Licensing

15. IOC Finance • Revenue is distributed among the organizing committees for the Olympic Games, the National Olympic Committees, Olympic Solidarity, International Olympic Sports Federations, and the IOC

16. IOC Finance • Main sources of revenue • Broadcasting – 50% • Sponsorship – 40% • Ticketing – 8% • Licensing – 2%

17. IOC Finance • Olympic sponsorship • Relationship between the Olympic movement and corporations intended to generate support for the Olympic Movement and the Olympic Games

18. IOC Finance • Olympic Partner Program (TOP) • Corporations pay millions of dollars for status as an official Olympic sponsor for a minimum of 4 years • Idea was to sell a limited number of worldwide sponsorships, • Each TOP sponsor was granted exclusivity in a sponsorship category

19. IOC Finance • Olympic Partner Program (TOP) • TOP costs • TOP I – (1985-1988) 9 companies @ $10 million each • TOP II – (1989-1992) 12 companies @ $20 million each • TOP III – (1993-1996) 10 companies @ $40 million each • TOP IV – (1997-2000) 11 companies @ $45 million each • TOP V - (2001-2004) 10 companies @ $600 million each • TOP VI – (2005-2008) Already signed John Hancock, Coca-Cola, Kodak, SchlumbergerSema, and Swatch

20. The National Olympic Committees • NOC’s Requirements • Propagate the fundamental principles of Olympism at the national level within the framework of sports activity an otherwise contribute to the diffusion of Olympism in the teaching programs of physical education and sport in schools and universities • Ensure the observance of the Olympic Charter in their countries • Encourage the development of high performance sport as well as sport for all • Help in the training of sports administrators by organizing courses and ensure that such courses contribute to the propagation of the Fundamental Principles of Olympism • Commit themselves to taking action against any form of discrimination and violence in sport • Fight against the use of substances and procedures prohibited by the IOC or their IFs

21. The National Olympic Committees • NOC Responsibilities • Responsible for the representation of their respective countries at the Olympic Games and at the regional, continental, or world competitions patronized by the IOC • Supervise the preliminary selection of potential bid cities

22. The National Olympic Committees • NOC Regional Organizations • Association of National Olympic Committees of Africa • Olympic Council of Asia • The European Olympic Committees • Oceania National Olympic Committees • Pan American Sports Organization • Common objective of these regional associations is to uphold the Olympic Charter and promote sport in their region

23. The United States Olympic Committee • organization that provides leadership and guidance for the Olympic movement in the US

24. The United States Olympic Committee • Amateur Sports Act of 1978 • Appointed the USOC as the coordinating body for all Olympic-related athletic activity in the UC • It designated the USOC as the sole authority for supervision and development of sports in the Olympics and Pan Am Games • USOC responsible for promoting and supporting physical fitness and public participation in athletic activities by encouraging developmental programs in its membership organizations

25. The United States Olympic Committee • USOC Member organizations • Olympic and Pan American sport organizations • Affiliated sport organizations • Community-based and education-based multisport organizations • Athletes’ representatives • Armed Forces • Disabled in sports • State Fund-raising organizations • Associate members • Representatives of the public sector

26. The United States Olympic Committee • Amateur Sports Act granted USOC exclusive rights to: • Symbol of the International Olympic Committee • USOC emblem • Words “Olympic”, “Olympiad”, and “Citius, Altius, Fortius”

27. The United States Olympic Committee • USOC Funding • USOC obtains almost no funding from federal sources • Majority of revenue is derived from private fund-raising, licensing, and sponsorships

28. The United States Olympic Committee • USOC supports bid of US cities to host the Winter or Summer Olympic Games, or the PAN AM Games • New York City has won the USOC bid for the 2012 Summer Olympic Games

29. The United States Olympic Committee • USOC’s Organizational Structure • Officers – President, 3 vice-presidents, secretary, treasurer • Executive Committee – responsible for supervising conduct of • business affairs for the USOC • Board of Directors – establishes policies to be carried out in following USOC purposes and objectives • Standing and Special Committees - make recommendations to and reporting to the board of directors • Athletes’ Advisory Council – helps improve communications between the USOC and active athletes

30. The United States Olympic Committee • New organizational structure approved in 2003 • In effect April, 2004 • Reduces number on Board of Directors to eleven • Size of board could change as IOC members are added

31. International Federations • Characteristics • International, non-governmental organizations • Administering one or more sports at the world level/national level • Role • To establish and enforce the rules concerning the practice of their respective sports and ensure the development of their sports throughout the world

32. International Federations • Inclusion in the Olympic Program • Summer Olympics – sport must be practiced by men in at least 75 countries on four continents; women at least 40 countries on 3 continents • Winter Olympics – at least 25 countries on 3 continents • Sport is admitted to the program of the Olympic Games at least 7 years before the Olympics • A discipline (branch of an Olympic sport, i.e. beach volleyball) must have a recognized international standing to be included in the program for the Olympic games • An event must have a recognized international standing both numerically and geographically , and have been included at least twice in a world or continental championship

33. International Federations • Bidding process • The cities communicate to the IOC their interest in hosting the Olympic games • The Executive Board approves them and the cities officially become Candidate Cities and proceed with a full bid • The IOC chooses five Candidate Cities • IOC will designate an Evaluation Commission • Candidate Cities have to present a Candidature File to the IOC • Site visit by the IOC Evaluation Commission • Evaluation Commission will submit a report on all candidates to the IOC two months before the Session • Host city will be chosen at that Session

34. Organizing Committees of the Olympic Games • When a host city is selected, an organizing committee of the Olympic Games (OCOG) has to be formed • Organization of the Olympic Games is entrusted to the National Olympic Committee of the country of the host city

35. Organizing Committees of the Olympic Games • Areas addressed by the OCOG • Operations • Accommodations • Accreditation • Logistics • Host broadcasting • Television rights • Medical need • The Olympic Village • Security • Technology • Tickets • Transportation • Sport competitions

36. Organizing Committees of the Olympic Games • The IOC will provide the majority of the budget up front due to the long-term broadcast and sponsorship revenue

37. The North American Professional Sports Leagues in the Global Community • Exposure • Television • Preseason games or exhibition games in other countries • Websites • Camps (i.e. Africa Camp 2003) • Clinics for coaches in other countries • International players on all leagues

38. The North American Professional Sports Leagues in the Global Community • Football • Professional football league started in 1996 called Major League Soccer (MLS) • Women’s football has also become successful after the 1999 Women’s World Cup played in the United States and won by the US for the second time

39. The North American Professional Sports Leagues in the Global Community • Three major reasons for women’s sports struggling on television • TV outlets • Timing • Advertising • Lack of national sponsors

40. The Canadian Amateur Sport System • History • Sport management as a profession was first recognized in the early 1970s when the federal government • National Sport Organizations (NSOs) were formally recognized by the federal government and received funds to support athlete and organizational development • Federal, provincial, and municipal governments have played a major funding and policy role

41. The Canadian Amateur Sport System • History • The high level of government involvement in sport has been a two-edged sword • The foundation for the Canadian Sport system would not have developed as rapidly or as uniformly without government support • A financial over-reliance on government leadership and funding has evolved, leaving sport vulnerable to political whimsy and the financial constraints and priorities of the government in power • Canadian sport system is floundering • Sport in Canada is not viewed as an integral part of the culture • “Recently, many sport leaders are beginning to understand that the government’s priorities are not necessarily those of sport and the money received by sport must be used to address the government priorities, which are generally less to do with athlete and infrastructure development and more to do with national identity and international prestige.”

42. The Canadian Amateur Sport System • Structure and roles within the current Canadian sport system • 1992 Task Force Act – emphasis on the need to design and implement new community-centered models for the development of sport, to be created in partnership with provincial government and stakeholders • Little success achieved in recreating the system as suggested • Large gaps still exist between what is happening at the community level, the provincial level, and the level of national sport programming • Often a competitive attitude by the sport leaders within one sport organization • Federal and provincial governments decided that it was time to reduce the deficit, sport was seen as a frill that could be done without

43. The Canadian Amateur Sport System • New Sport Policy for Canada – Physical Activity and Sport Act (Bill C-54) • Purpose is to encourage, promote, and develop sport and physical activity • Intent is to reflect and strengthen the important role that the Government of Canada plays with respect to physical activity and sport • Vision is to have by 2001, a dynamic and leading-edge sport environment that enables all Canadians to experience and enjoy involvement in sport to the extent of their abilities and, for increasing numbers, to perform consistently and successfully at the highest competitive levels

44. The Canadian Amateur Sport System • Four goals of the policy: • Enhanced participation • Enhanced excellence • Enhanced capacity • Enhanced interaction

45. The Canadian Amateur Sport System • Four action plans: • Federal government action plan • Individual action plans by specific provincial/territorial governments • A collaborative federal-provincial/territorial government action plan • Action plans undertaken by sport communities

46. The Canadian Amateur Sport System • Opinions • “A strong government mandate and significant opportunity to address needed work at the grass roots to increase participation in communities” • “ ’Enhanced participation’ will not be fully addressed by governments or the sport community because the time and resources needed will not be committed” • “Many sport leaders do not really understand the larger role that sport has to play in society, roles that relate to health issues, socio-cultural issues, and community capacity building”

47. The current role of Canadian governments in sport and physical activity • Sport Canada • A branch within the Department of Canadian Heritage • Mission: “to support the achievement of high-performance excellence and the development of the Canadian sport system to strengthen the unique contribution that sport makes to Canadian identity, culture, and society” • It funds amateur sport at the national level • Annual support varies from year to year • Generally, the more successful its athletes are internationally, the greater the funding support to a National Sport Organization

48. The current role of Canadian governments in sport and physical activity • Federal Government support • To the extent that sport allows it to meet such objectives as assisting Canada in having a strong international presence or contributing to the country’s sense of heritage • Funds used to provide athlete assistance • Administrative assistance for the national office • Coaches training • Travel and money in support of travel to or the hosting of major national or international games

49. The current role of Canadian governments in sport and physical activity • Department of Health • Limited Federal support provided to address common areas of increasing participation in physical activity • Provincial/territorial government • 10 provinces and 3 territories all have different priorities for funding their sport organizations • Municipal governments • Provide funding to support community sport across towns and cities in Canada

50. Role of the Canadian Olympic Committee • Not-for-profit, non-governmental organization • Second largest contributor of financial assistance to Canadian athletes, coaches, and organizations • Responsible for all aspects of Canada’s involvement in the Olympic movement • Governed by a volunteer board of directors and has 33 employees in regional offices across Canada