The untold story of Olympic sponsorship

Underneath the optimistic portrayal of sponsorship in the media lies the true effect that sponsorship plays on Olympic athletes.


Some athletes we have spoken to have said they have felt "as if they (their sponsor Adidas) didn't care) so we have to ask - does the Olympic sponsorship system really care for its athletes?

Launch of the team GB kit: Photo from Adidas press

Big sponsors and brands are popping up everywhere in the run up to the London 2012 Olympic games and people are becoming more familiarised with big named athletes, but what about the athletes you don't hear about?




Globally athletes are being used to push mass consumerism, with sports brand giant Adidas being quoted in the Telegraph and on the Economic Times websites as saying:

"If they don't win, then you've had some value out of them in the run-up"

During our investigation we have uncovered and discussed several athletes who lack sponsorship and their personal experiences. From this research and our own exclusive interview we have been able to break down the PR image pushed forward by sponsors and see the untold story.

In our interview we bought you the exclusive story of our anonymous source whose athletic career and personal life was destroyed by their sponsor. 

Our contact describes their tragic ordeal with their sponsor Adidas. 

When Adidas took this athletes accommodation, training equipment and money they were left bankrupt and desperate and haven't been able to return to athletics since.

We have repeatedly attempted to contact Adidas regarding our investigation but we have yet to receive a response.

Are they avoiding our questions or just avoiding the issue completely? Their delay on responding to our questioning is definitely something to be noted. In our previous investigation Adidas responded to another exclusive interview stating:

 “...our company and how we respect our clients. Our sponsorship deals are freely available if the public request, like most companies we have an exclusivity term within our contract. However we do not feel this deters clients from their role within the sporting field they represent, we are merely assisting and aiding their profile.”

Our investigation has not only highlighted this exclusive case but several other cases such as James Ellington and Warington who although successful Olympians have struggled to get sponsored and be able to compete in the games.

In the run up to the 2012 games approximately 1,800 athletes were dropped by the WCPP according to Brian Brady of the Independent. Statistically funding is going up but so is the amount of athletes being neglected.

Is this neglect down to just sponsors or the entire Olympic sponsorship system?

Breaking down official documentation provided by LOCOG and the IOC it has become increasingly clear that the systems provides limited restrictions to athletes with high gain rewards to the companies behind the scenes. 

Any rise in popularity, athletic achievement or notoriety ultimately benefits the system foremost. Our recent post exploring the legal side of sponsorship discusses the advertising compliance law and its effect on athletes. 

The cases we have investigated experience problems from a variety of different areas of sponsorships and sponsors which highlights the developing flaws in the system.

Athletes are starting to slip through the cracks of Olympic sponsorship leaving them vulnerable and neglected. Unfortunately these athletes are becoming another set of statistics and more and more cases continue to grow.

History of Adidas

What's the history behind Adidas? A global brand name, which has gone on to employ over 42,540 people worldwide. This organisation began in Germany in 1924 and was founded by Adolf Dassler, which is where the company got its name Adidas.

Since those early humble years, the company has gone on to become the largest sportswear manufacturer in Europe and the second largest in the world. With last years profits of £567million and the companies total assets rising to £10,638 billion.

But it Adidas still that pure and humble company, just wanting to produce the best. Or has it gone on to be a force within the market, stopping at nothing to become such a worldwide name?

In the 2008 Beijing Olympics, Adidas spent over £70 million in sponsorship. This figure caused outrage in the sporting industry that this one company should be allowed to input such a high level of investment. There sales increased significantly like they do in most worldwide events they sponsor.

There sponsorship within the 1996 Olympics has still proved to see one of their best returns to date. With 6,000 athletes seen with that famous 'three stripes' logo over the duration of the games. 220 medals with Adidas kit being worn, as well as 70 of those medals taking centre stage display on he podium by placing gold in that competition. This incredible victory saw sales for the company increase by an astonishing 50%.

Just like most Olympic years, the friction between Adidas and its main rival Nike is heating up for the start of London 2012. Tensions are high as Adidas are an 'Official Olympic sponsor' for the games on behalf of the British Olympic Association. Therefore they have negotiated on their contract that all winners on the podium will wear the official London 2012 kit, which is emblazoned with the Adidas name and logo.

This is despite individual’s athlete’s sponsorship deals from companies such as Puma and more vocally Nike. Who should the athlete represent, their sponsor or the team’s sponsor? This question is causing a lot of debate between athletes, their sponsors and the British Olympic Association. What is being questioned is the fairness that athletes have to make the choice to either break their contracts and wear the Team GB kit, or stand by their morals and support their individual private sponsor. Nike is now arguing that competitors should wear their private sponsors shoes on the podium and the rest of the Team GB kit to go with it, therefore striking an agreement. However Adidas has put millions into securing this deal from the BOA and so feels they should get monopoly on what the athletes should wear.

With only a few weeks left before the games, does London really want this added controversy?

On top of this, new reports have also emerged on the conditions of employees by Adidas in third world countries such as India. Although they claim that these factories do not produce the official London 2012 kit, it has not been confirmed whether they produce other Adidas clothing endorsed by their sponsored athletes. It was reported that staff got paid as little as 74 pence a day, which when you compare to million pound profits seems extremely tightfisted for the company wanting to be the best in the world.

Former cabinet minister, Tessa Jowell, is backing an investigation named the “War on Want”. It was unveiled that some staff in Bangledesh got paid as small a wage as 9 pence an hour and underwent abuse, both physical and mental during working hours. They also had to work compulsory overtime and many staff were beaten if they refused. These actions strongly contradict Bangladeshi labor laws and investigations are now taking place in some factories.

Athlete sponsorship - the legal side

Under the advertising compliance law, agency Reed Smith have released a guideline that sponsors can follow when it comes to marketing campaigns surrounding the London Games.

In 2006 the Government alongside the International Olympic Committee passed the Olympic Games and Paralympic Games Act, which together with the Olympic Symbol Act of 1995, offers protection to the Games and their sponsors.

The British Olympic Association has informed the 560 UK athletes that they must sign a confidential rule book, titled the 'Team Members Agreement' failure to do so could result in disqualification from the Games.

The law surrounding athlete sponsorship is very complex and failure to comply with these rules can ultimately see athletes banned from performing in the Games. During the Olympic Games a team of 'branding police' will be checking venues to ensure that manufacturers logos are removed or hidden during the Games.

Kit

A strict clean venue policy has been enforced by the International Olympic Committee, which means that sponsored athletes are not permitted to wear branded sports kits which carry logos other than that of the official kit sponsor.

For example during the 2012 Games an athlete sponsored by Nike will not be allowed to wear their branded clothing, instead they must only wear Adidas whilst in the arena.

Athletes are banned from wearing any item that carries individual sponsored logos during the Olympic trials, events and pre or post race interviews.

If an athlete is found to be in breach of the IOC's rules, they can then ban athletes from participating in the 2012 Games.

Appearance

Athletes have been place under a strict code surrounding tattoos, haircuts, piercings or contact lenses. These must not issue commercial or political messages.

Any athlete who has existing tattoos that the board believe make political statements must be covered up.

Endorsements

Athletes have been placed under strict rules when it comes to mentioning brand names. Restrictions are in place to stop athletes being seen or mention sponsors such as Nike, Puma and Cola - as these are not official sponsors.

Under the rules of the competition, competing athletes are not permitted to endorse products during the period of the games.

However if an athlete is chosen to endorse products or services for a company, then these advertisements must be published either before or after the Games - and not during the Games.

Any competing athlete found to appear in adverts during the period of the Games may be banned from participating.

However this is one exception to this rule: well known former athletes. Those who are not competing are allowed to be featured during this time.

For example athletes like Dame Kelly Holmes.

Although no association should be made to the Games during these adverts otherwise this is an infringement of the London Olympic Association Rights.

Social Media


A social media and blogging policy has been created to help athletes understand the restrictions on blogging.


During the Games period (18 July - 15 August) athletes are not permitted to blog about sponsors or endorsed products, unless it's an official sponsor.

For example Usain Bolt will not be able to Tweet about drinking Pepsi (as Coca Cola is the main drinks sponsor)

Audio and video content from the athletes' village and any Olympic venue is banned from being uploaded to the Internet.

Athletes are banned from reporting on competition or comment on the activities of other athletes.

Press


Athletes are banned from attending any press conferences that have not ben arranged by Olympic organisers wearing official kit or medals.

Non-Sponsors


Sponsors who are not official Games sponsors are not allowed to advertise slogans such as:

"Supporting our athletes at the 2012 Games!"
"Help us make it a Gold 2012"

Companies are not allowed to use images that suggest an association with the London Olympics

As part of a promotion non-sponsored companies are not allowed to offer tickets.

A website has been set up in order for both organisers and athletes to report any ambush activities they may encounter. OlympicGamesMonitoring.com has ben set up, however it is inaccessible to the public and unauthorised users.

To protect sponsors brands and broadcasting rights, these strict rules will affect every athlete and business in the UK.

"I almost felt as if they didn't notice or care"

An exclusive interview shows the hidden stories of a sponsorship with Adidas.

Being an athlete isn't easy, its long days working on your discipline, grueling hours of training to remain at your peak, constant drugs testing and striking that balance between diet and lifestyle. So to many, securing a lucrative sponsorship deal takes a massive weight off your shoulders, enabling you to focus on your one goal of winning. 

But what happens when that deal goes sour? I met up with someone whose life has been turned around by these tying sponsorship contracts. They have shared with me their first hand experience of what it is actually like when that multinational corporation turns against you. And now, they are ready to tell the rest of the world just how easily these companies can make you or break you. 

The meeting began quite awkwardly, it is obvious that this subject is one that she doesnt like to talk about much. She admitted to myself that it's a subject she says away from, I get a feeling that this interview will help her get over her fears and there could be a lot hidden which I didn't previously realise. 

To many of you would empathise, knowing that if someone has been a victim of a past event they may not want to relive it, like many, my source is scared of the repercussions that talking to me may have on her life now. "it upsets me, that was my past and if things went well it would of also been my present and future. Sadly I messed that up, nothing can be changed now, I have learnt the extremely hard way."

Her saying this has left me wanting to know, what exactly happened with her sponsorship deal. She was with a high profile company and as we get talking over a coffee, which seems to have relaxed her a bit, I begin to find out what exactly happened with her sponsor. 

She was touted at a young age, having been a keen runner she progressed early on into regional and district competitions. However her true potential was during national qualifiers in which she cleared each round with ease and managed to place in the finals of her race. "At the end of my race some people came up to me and said they would love the opportunity to sponsor me to train and become professional." Naturally, like any athlete she spoke to her family and running coach and accepted the deal, "it was something I loved to do, the thought of getting paid for it was just too good to turn down."

I began to wonder how this could all go wrong for her, she was set up with a five year contract, brand new sports kit to wear when training and competing, as well as free accommodation and a wage of £2,500 to just run once in a while.  

"When things are going great, you forget you are still tied to a contract." 

This one sentence said a thousand words. My source had disobeyed the rules set out in a binding contract by her sponsor. Now all I was interested in, is what she did to break them.

She was selected by her national placings to go forward and compete at a European qualifier. She was with other British runners who she had got to know and befirend over many years competing with them, some of the runners had sponsors like my source did, however some were still desperately looking for one, "having a sponsor just adds to that sense of security for you." 

However is having a sponsor all that great? My source reveals how friends she knew got to wear whatever kit they liked at the time and what they thought best enhanced their performance. Having a sponsor could potentially prevent you from being your best, if you se tied to their products it may not be as good as other makes are.

One of her friends was living that free sponsor-less life we are talking about, she was very close to our source and they had known each other through running for many years. At this one race she was wearing a competitors trainers, "I really liked them on her, we are the same shoe size so asked if she would mind me trying them on." After doing a few warm up laps in them it was obvious that these trainers were more comfortable on her and she felt she would be better performing in these rather than her own branded ones. Her friend had a second pair of the trainers on her so let her wear those ones to race in, even though her contract stated she should wear only her brand at competitions. I was up against European champions so didn't think I was going to win or even place so didn't see the problem. "I will be out next round so who cares" I thought to myself. 

However, she was actually running a a better pace than usual and kept getting through to the next rounds. "I was elated I didn't even notice what I was wearing I just couldn't believe I kept winning!" When she made it into the final 12 she was too focused on winning that she didn't want to ruin her chances by changing back to her proper running trainers. She didn't win that competition, but she did place in the top three, which meant she had to stand on the winners podium with a case of 'the wrong trainers'. Her picture got into a few newspapers, she looked stunning with a toned body and her sponsors branding all over her, it all would of been perfect if it wasn't for the bright red running trainers with a competitors branding on her feet rather than her paid branding. 

When the pictures went to press the next morning, her feeling of elation at placing so highly in this competition was gone. Sponsorship all about that winning race, by sponsoring someone you are backing a winner. When that athlete crosses the line they are meant to encompass a winner, wearing the clothes of a winner, so when consumers see the images they see how you should dress to be the best in this discipline. Her friend had also won in her races, the papers cashed in on both of the girls wearing the same shoes, it was basically free advertising to the other brand.

It was inevitable that she would soon be contacted by her company. They took a few days to approach her, "maybe I was such a good deal for them that they didn't care?" But in fact that was not the case. They called her up and asked her to come to their offices the next morning at 10am. She had no idea what she was about to expect, "in hindsight, I wish I bought a lawyer in with me or something."

She went into a conference room with ten suited and booted people all sat round a big table clearly waiting for her, using her given feminine charm she wore a tight blue office style dress and push up bra, if she didn't have a lawyer she may as well use what she had got. Although a few of the men stared, clearly impressed at her effort, she knew once the top dog begin to speak that those efforts were in vain.

They informed my source that she had violated her terms of agreement by advertising a competitors brand. They had various sales figures of how the competitors running shoes had increased in sales by a certain percentage within the period of time since the race and how she was responsible for that figure. They highlighted profit areas on products she was endorsing which were low. Her contract was ended with immediate effect and sadly she was then sued for breaking the clearly outlined clauses on her contract. On top of this she was also ordered to pay the company back for losses, she lost her flat which they had provided her for and provide back rent for the time in which she was living there. "All I could keep were my running clothes that had been used, all other stuff had to be returned."

In total she ended up having to find over £170,000 for them. Which she clearly did not have available "and they knew that". She had to move back to her home town with her parents and ended up getting a job at a supermarket because she had no qualifications. Sadly, after many months of struggling to pay back what she owed she ended up with no choice but to declare herself bankrupt. "I only managed to pay them about £15,000 they dropped the case and just basically left me to be penniless."

She began to feel lost and yearning for her old life of living in high class London and running for her wage. She fell into a state of depression, spent days at a time in bed, just watching the world go by whilst she stayed still. However, that running passion in her finally stirred again ad she knew she should get back up on her feet, "I went to college as a mature student and got some qualifications". She became a carer and begin to earn a decent wage in a job she enjoyed. After a few months she then began running again, "at first just as exercise and then I joined a local running club." It was hear that her life finally changed for the good, as she met a guy who was part of the running club. They began dating and quickly knew it was meant to be so moved in together. She didn't keep her past from him though, he knew all about her bankruptcy and issues with the company. "I don't have long left on it now and once that goes, that will be the end of my old life and my new one can now finally begin."

What I find touching about this is how through all her hardship she has still remained strong, even at telling me this story, clearly it upset her but she thought about the good things which have come out from it. She will never be happy at how things went wrong for her, but at least she has learnt to accept them.

"I see people in the Olympics now and feel that could of been me, but my silver lining is my fiancé, if things hadn't of messed up I would never of met him, in a way I am better for it. I miss my running but I do it now for enjoyment rather than making a living. Now a days I am a carer, I love my job, my home and my fiancé.... People don't know about my past because that felt like a different me, I have changed now and I believe it is for the better..."

I would like to thank my source for agreeing to tell her story at how being sponsored by such a multi-national company can alter your life in so many ways. For some these deals are brilliant and a chance at a future in a sport they love, but you must always remember those who have had to suffer a lifetime for one small mistake. These companies are not forgiving, they may forget you like they have with our source, but they are ultimately the only winners within sport.

Who do Adidas sponsor?

Adidas is a major international sports sponsor, with its sponsorship budgets on the rise, it's important to look at how many athletes Adidas currently sponsor.

(Source: Charlee Greenhalgh)

The infograph shows that Adidas currently sponsor a wide range of athletes from across the globe, however these results show that their sponsorship of athletes heavily fall within that of rugby and football.