It is hard to think of a sporting event that has been more
monetized than the Olympics. Corporate partners spend upwards of tens of
millions dollars to become an official Olympic sponsor. Host countries and
cities spend billions of dollars on building new stadiums, venues, stores, and
roads for the two-week event. That does not count the millions of dollars that
goes into other countries making a bid to host the games. Fans from around the
world also spend large sums of money to on travel, tickets, hotel, food, and
other accommodations during the Olympics.
The only
part of the Olympics where money is not supposed to be involved is with the athletes.
CNN’s Bob Green colorfully described what made the Olympics special as compared
to most other sporting events when he said,
“The one firm rule that always governed the Olympic Games was that amateur
athletes were permitted to compete. Professional athletes were not.” Starting
with the 1972 Olympics, however, that began to change. While professional
athletes became more commonplace at the Olympics after the games in Munich, the
real sea change occurred with the “Dream Team” of NBA basketball players from
America in 1992. Since then, swimmers, gymnasts, and track & field stars
have earned millions of dollars in endorsements deals and prize money while
still competing as Olympic athletes.
The
perception still largely exists, however, that most Olympic athletes are still
“amateurs”. One of the biggest draws of the Olympics is that most competitors
in the games toil in obscurity for four-years for one (or a few chances) to
compete on an international stage. Whether it comes to obscure sports such as the
modern pentathlon or biathlon to more well known sports such as wrestling or
rowing, the ultimate reward is being able to win a medal and bring honor to one’s
country.
While that
may be the case, all Olympic athletes have an opportunity to also make a lot of
money. In the ultimate pay-for-performance compensation structure, countries
reward their athletes for winning medals. In the United States, athletes
receive $25,000 for a gold medal, $15,000 for a silver medal, and $10,000 for a
bronze medal. While that may seem like a nice chunk of change, athletes in
other countries make significantly more money. In Russia, athletes win $135,000
per gold medal, $82,000 per silver medal, and $54,000 per bronze medal. In
Uganda, the gold-medalist in the men’s marathon received $80,000 and a pledge
by President Yoweri Museveni that his parents would be built a new home by the
national government.
While the
United States Olympic Committee (USOC) receives most of its money through
corporate sponsorship / donations, many other nations’ government directly subsidize
and pay prize money to athletes. In addition, some nations have used the
promise of large cash rewards to encourage athletes from other countries to
become citizens of that nation. For example, Feng Tianwei was born in China and
became a successful table tennis player. Despite being ranked eighth in the
world, Feng would not be good enough to make the Chinese table tennis team.
Instead of trying to compete for China, Tianwei was one of three players who “were spotted
by Singaporean scouts and enticed to emigrate under the country’s Foreign
Sports Talent Scheme.” Feng received fast tracked Singaporean citizenship
(which is not available to non-athletes) and ultimately earned over $400,000
for her two bronze medals at the games.
To be
clear, we are not criticizing athletes for trying to make money nor countries
trying to enticing athletes to become citizens and compete for a nation in
Olympics. These are literally and metaphorically the rules of the game and both
athletes and countries should take advantage of these rules. These practices,
however, appear to counter the ethos of the Olympic Games as they were
originally created - especially in the minds of fans, media, and sponsors. Athletic
tourism, as with Tianwei, calls into question the idea that amateur athletes
are competing for their country or if they are professionals using the guise of
nationalism to make money.
These
payment schemes for Olympic also bring up a myriad of other questions that
cannot be contained in a single blog post. For example, should countries spend
millions of dollars on athletes who usually only gain an international
spotlight once every four years? If the “amateur” athletes in Olympics are
being paid so much money, shouldn’t the “amateur” athletes at the collegiate
level in the United States get paid as well? These are all interesting
questions that can and should be examined in more detail. However, there is
little question that there no longer any “amateur” athletes competing in the
Olympics.
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