Will this Olympic index deliver gold?
The eyes of the world will turn to Vancouver tonight to see who comes home with the gold.
But long before the top athletes hit the podium, it looks like the major sponsors of the Games are already coming out way ahead of the pack.
If you’d like to join them, keep an eye on the Dow Jones Summer/Winter Games Index, a collection of publicly traded partners, sponsors and suppliers of the Vancouver Games.
While the event may be global, the current index is anything but. Having dropped the Chinese names that drove it leading up to the Beijing Games, the index is now heavily tilted towards North America, with roughly 60 per cent allocated to the U.S and 30 per cent to Canada.
But does it make money? Well, so far it has. As of today, the index is up 36 per cent since December 2008, when it was modified to reflect the Vancouver 2010 Games.
And there’s lots of research to suggest that sponsorship of big sports events like the Olympics can pay off when done correctly, says John Davis in his book, The Olympic Games Effect.
But the problem for major sponsors like NBC -- which paid $820-million for the rights to broadcast the Games in the U.S. -- is that they negotiated their deals when the economy was humming, points out MSN columnist Michael Brush. On the upside, he acknowledges, major sponsors will get to use the Olympic rings in advertising for years.
Looking back, the economic impact of the Games seems to come primarily from the lead up to the big event, tailing off a bit after the initial 10 days – which suggests that the smart money may be selling on strength during the next couple of weeks.
Do you see the Olympics having any impact on your portfolio?
By Gordon Powers, MSN Money
Posted by: Dave Stevens | Feb 12, 2022 11:51:01 AM
who cares about the olympics it,s all a bunch of costly bullshit
Posted by: Lisa | Feb 14, 2022 2:16:50 PM
I'm with you on this one, Dave. Olympics is honestly not good for much, except maybe tourism. However, aren't there easier ways to bring tourists to Canada??? Who cares who is the best at whatever it is???
Posted by: Chuck | Feb 14, 2022 9:50:45 PM
Dave and Lisa simply don't get it. There's more to life than the bottom line. Open your hearts, have pride in your country. It feels good.
Posted by: Lisa | Feb 15, 2022 9:34:21 AM
Chuck...why can't you open your heart helping your family members out, that are in need?? Or...helping out your community in need (if your family is doing fine)?? Why do we waste tax dollars on "luxuries" such as the olympics when many of our own fellow canadians are having a very hard time?? I believe in opening your heart...to your OWN FIRST. Have a good day!
Posted by: Canadian Eh.?! | Mar 2, 2022 1:08:13 PM
To "Host" the Olympics in your country is a proud moment for every individual in that country. To be "part" of the Olympics, the country which you are from is proud of you.!
What Lisa and Chuck seem to forget or is igorant of is the benefits that come along from being the "Host" country. Do you think that the event buildings that were constructed is going to be removed after the Olympics.? What you fail to realize is that most of the buildings that were used to house the athletes will be used for low cost housing, the event facilities to be used for public programs. By the way, do you think the Olympic village was constructed by little "elves".? The Olympics provided our "fellow Canadians" jobs across the country. Thats taking care of our "OWN" in our own backyard.!
Yes the tourism bings in money but what money cant buy the Olympics provides. By the way, the amount of tourist we get during the olympics is nothing compared to the amount of ppl going to the Calgary Stampede over a four year period so obviously that is not the reason why Canada wanted to Host the Olympic games simply for the tourism dollars. You cant buy pride, you cant buy an olympic gold medal, you cant buy the feeling that most canadians felt when a Canadian was standing on the podium to be honoured with a medal, you cant buy the feeling of national unity when we won GOLD in Hockey and you cant buy the reputation that Canada is a friendly, peaceful country.!
Canada once again has the reputation of being a "Peaceful Friendly" country, not because of the Olypics but because of how the ppl who call Canada their home treated our "guest". That speaks volumes in the global arena.! I think everyone in Canada is proud to have that reputation, I know I did when I carried the Canadian flag patch on my backpack travelling across Europe.
Lisa, having the olympics shouldnt have any burden on anyone that needs to feed their family. No one is forcing you to buy tickets and we can easily say the same thing about Canada being part of a war at the moment, that we should take care of our citizens first before going to another country and helping them. If Canadians viewed humanity like that, we wouldnt be Canadians. We do take care of our ppl first, why do you think our health care system is world renowned (although at times I question that..lol).
Being a global leader has its cost.
Posted by: Purely Canadian | Mar 2, 2022 1:18:19 PM
@Steven
The Olympics isnt about who is best or a win, the Olympics is about being and taking part of the Olympics.
Posted by: Canadian Eh.?! | Mar 2, 2022 1:21:09 PM
Sorry Chuck,
I meant to say Lisa and Dave.
I completely agree with your comment. It feels good to have pride in your country, and getting 14 gold medals, well thats just a bonus I think.!
:)
Posted by: Fred | Mar 10, 2022 4:14:21 PM
@Dave
Good job Dave ! You're using a costly system to post a free bullshit comment!
@Lisa
Investing in current heroes helps to give faith for the ones in needs and others in hospitals.
If you really open your heart, then you should look at the comming paralympics.
You will learn what sports can bring to anyone's life, even the one in needs.
Posted by: George | Mar 11, 2022 2:36:58 PM
Having been one of 2500 volunteers, was the thrill of a lifetime.Being in the hockey arena
with over 16000 proud, cheering and flag- waving Canadians is just priceless.
Riding a crowded skytrain, where everybody talkes to each other and gives high fives ? WOW !!!
If it takes an Olympiade to bring us Canadians together like that, we should have one every year.
Posted by: George | Mar 11, 2022 2:52:14 PM
Sorry forgot a zero behind 2500(0)
Posted by: Jeff | Mar 13, 2022 7:54:19 PM
We all are Canadian Eh!!!!!! Proud Canadians that is. Meclean's Magazine labeled the title of the Olympic Commemorative Issue, THE GREATEST GAMES EVER. Thats a pretty big statement, but my wife and I were there for the exitement of the games,and every athelete from every country was respected as well as celebrated.For example we were at victory party when Maelle Ricker recieved her gold medal. Every athelete was cheered with presentation of their medal, which showed alot of class,and well Maelle, the crowd blew here away with Canada's voice at B.C place. Every event we celebrated in was memorable. Will this help my portfolio, probably not, I am your average class Canadian that saved for 2 years to get there and that amount of money put away for the next 20 years could be worth who knows 30,000. Like someone else said all Canadians will benifit from games as we all feel proud and money can't buy memories like that. Last note,if you have a chance check out the passion for our country in my Patriotic Face in Maclean's Olympic Commemorative Issue, you can't miss it. Congratulations CANADA!!!!
Posted by: Randy | Mar 17, 2022 1:12:44 PM
Did anyone read this article? Your comments have nothing to do with it, assides from the word Olympic. So I'll try to tie it all together for those of you still reading this.
This article shows that the Olympics if done well is good for the economy which in turn becomes good for those less fortunate. Vancouver was a success because it didn't need to spend wasted dollars on the games. Most of the facilities (or at least the costly ones) were already built. The highway and the skytrain were going to be built at somepoint soon anyways, so why not ride the olympic wave and pay for these with federal money.
The sponsors probibly did better because the games were a success and there was little bad publicity.
The timming of the games was by chance, perfect. Most of the Olympic sponsors paid when times were good. Now just as the country is getting out of the recession, we had the biggest party on the planet! VANOC is saying that because of Canada's performance, there is a good chance these games will result in a proffit. And with a proffit, there is more money for welfare bums.
To comment on why we shouldn't spend money on homelessness a homeless man said it best on TV. "There was homelessness before the games, there will be homelessness after the games". The Pheonex project has reported that over $1 000 000 is spent in the hastings street area on homelessness ever day. With that kind of money being spent to come up with no results, why would anyone think that throwing money at those who don't know how to manage money be a good use of money.
I challange anyone who protests the games on the fact that the money is better off thrown at homelessness to detail the plan on how that would bring a proffit to the money spent. Instead of telling politicians that it is their problem to fix homelessness, show us what YOU have done to sustainably reduce homelessness.