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The Olympic Games generates billions of dollars in revenue from sponsorship deals, money which funds the hosting of the games and goes towards the development of individual sports around the world.
The protection of exclusivity around those sponsorship rights is one of the biggest challenges faced by the International and national Olympic Committees and cease and desist letters will be flying around the world as the Rio Games step up in the coming weeks to dominate the sporting media and well beyond.
The Game period to which the most stringent application of the rules apply kicks in from July 27th and runs to August 24th. There was a ‘carve out’ option where athletes with existing ties might be given permission to use generic non Olympic advertising but the date for application for this waiver passed long before many athletes might have even considered a sponsorship.
It is something that all competitors and sponsors need to be on top of so as to avoid unnecessary distraction and by way of explanation here is a document produced by the International Olympic Committee earlier this year which goes a long way to explaining the reasons and the technical detail of the rule.
Rule 40 of the Olympic Charter: What you need to know as a Participant
Are you an athlete, coach/trainer or official participating in the Rio 2016 Olympic Games? If so, read the following document to learn more about Rule 40.
Bye-law 3 to Rule 40 of the Olympic Charter (commonly referred to in this context as “Rule 40”) states that: “Except as permitted by the IOC Executive Board, no competitor, coach, trainer or official who participates in the Olympic Games may allow his person, name, picture or sports performances to be used for advertising purposes during the Olympic Games.”
The Olympic Charter is the guiding document for the entire Olympic Movement. It defines the mission and role of the International Olympic Committee (IOC), National Olympic Committees (NOCs) and International Federations (IFs). It also provides rules for the organisation and administration of the Olympic Games, as well as guidance on disciplinary procedures and other governance issues.
1. What is the purpose of Rule 40?
Rule 40 is in place for various reasons, including:
- To preserve the unique nature of the Olympic Games by preventing over-commercialisation.
- To allow the focus to remain on the athletes’ performance.
- To preserve sources of funding, as 90 per cent of the revenues generated by the IOC are distributed to the wider sporting movement. This means that USD 3.25 million every day goes to the development of athletes and sports organisations at all levels around the world.
2. Who does Rule 40 apply to?
Athletes, coaches/trainers and officials participating in the Rio 2016 Olympic Games.
3. When does Rule 40 apply?
During the Olympic Games period from 27 July until 24 August 2016 (nine days prior to the Opening Ceremony until three days after the Closing Ceremony of the Rio 2016 Olympic Games)
4. As a Participant, can my personal sponsor launch an advertising campaign during the period of the Rio 2016 Olympic Games?
Yes, if they are Olympic sponsors.
No, if they are not an Olympic sponsor as the advertising campaign would then be seen as benefiting from the appeal of the Olympic Games.
Support from the business community, including Olympic sponsors, who acquire exclusive rights, is crucial to the staging of the Games and the operations of every organisation within the Olympic Movement. Revenue generated by commercial partnerships accounts for more than 40 per cent of Olympic revenues and partners provide vital technical services and product support to the entire Olympic Movement, in particular to provide the best possible conditions for athletes.
Olympic sponsors are: TOP Partners for international rights; NOC local sponsors for national rights; Rio 2016 Olympic Games sponsors for host territory rights.
5. Can my personal sponsors continue running an existing campaign during the period of the Rio 2016 Olympic Games?
Advertising by your sponsors – who are not Olympic sponsors – may in principle continue during the period of the Olympic Games, subject to the following:
- NOCs may decide to restrict or prohibit advertising subject to the territory’s applicable laws and regulations
- The advertising must not create any impression of a commercial connection with any Olympic property and in particular the Olympic Games
Applications to advertise must be submitted for approval to the NOC or IOC
6. Can my personal sponsors refer to my performance or my participation at the Rio 2016 Olympic Games?
Yes, if they are Olympic sponsors.
If they are not Olympic sponsors, the use of certain terms related to the Olympic Games alongside the Participant’s name or image is not permitted, whether it is an existing campaign or not. See below for examples:
Any use of other Olympic-related terms in such a way as to imply an association with the Olympic Games, depending upon context, is not permitted. Please see the examples below. For a full list of terms and further details please contact your NOC.
7. How do I apply for my personal sponsors’ advertising during the period of the Rio 2016 Olympic Games?
Athletes must initiate the application process.
Step 1 Check your NOC’s position
Step 2 If your NOC permits advertising by your sponsor, complete and submit the application form for a national campaign in your NOC’s territory: to your NOC; for a national campaign in another NOC’s territory to the NOC in question or for an international campaign to the IOC.
Step 3 Wait for feedback. NOC or IOC expected to provide an answer within 21 calendar days No response after 21 days means the request is deemed approved
8. When should I send my application?
As soon as possible to ensure that your application is reviewed in a timely manner.
9. Can my agent, coach or personal sponsor apply in my name?
Yes, but your signature is required. Application forms are available from your NOC; athletes@olympic.org or the Athletes’ Hub from 2016
10. Who is responsible for implementing Rule 40?
The implementation of Rule 40 in each country is the responsibility of the NOC of the relevant territories or the Rio 2016 Olympic Games Organising Committee.
NOCs may have additional requirements in relation to Rule 40 and its implementation. Local laws may also impact how Rule 40 is implemented in a specific country or territory. Please contact your NOC for further details.
11. What happens if I breach Rule 40 guidelines?
If the IOC/NOC is made aware of a potential breach of Rule 40, it will investigate and handle each case individually depending on the circumstances. Potential sanctions by the IOC as per the Olympic Charter or by the respective NOC, depending on its regulations, may apply.
12. Who should I contact for further information?
Contact your NOC for further information. If they are in doubt regarding specific questions, they will contact the IOC.
This document is intended as a practical guide for athletes on the application of Rule 40. Any submission is governed by the terms of the guidelines adopted by the IOC Executive Board related to Bye-law 3 to Rule 40 as applicable to the Rio 2016 Olympic Games, as communicated to all NOCs. It is not a comprehensive guide to Rule 40 or the Olympic Charter. For further information, contact your NOC.
13. Can I also contact the IOC Athletes’ Commission directly?
Yes. You can write to them for any athlete-related questions, advice and information at athletes@olympic.org.
For the Olympics in London over £1 Billion in sponsorship money was raised from Worldwide parters paying around £100 million each, Tier One Partners paying around half that, Supporters paying half again and suppliers half again.
Without sponsorship the Games could not take place. Without protection the sponsors might seek to lower their investment. It’s a critical blend to get right.
