Retired Olympians Making Money Too

For better or worse, the days of the Olympics being about amateurs and sport-for-the-sake-of-sport are over (for a great account of this shift read Rome 1960: The Olympics That Changed the World by David Maraniss). Today the Olympics is a huge money maker, both for advertisers and, increasingly so, for the athletes themselves. Octagon, a major sports management agency, represents numerous Olympians such as Michael Phelps and Natalie Coughlin and works with them to line up lucrative marketing strategies. But it’s not just current Olympians who are cashing in on their athletic superiority—former Olympians are getting their slice of the endorsement pie too. Stephanie Clifford, of the online version of the NY Times, has a good article outlining this trend.

Endorsement and sponsorship money flow at the Olympics largely due to the fact that the games draw a worldwide audience (1 billion peopled watched the opening ceremony) giving sponsors a wide reach and high sound of voice. So whether it is at corporate sponsored meet-and-greets or arranged meetings by an athlete’s agent, the Olympics offer numerous opportunities to spark a relationship. Of course, for former athletes, this process is cyclical and peaks every four years as advertisers take advantage of showcasing certain athletes while their sport is on the minds of many. But in some cases, partnerships forged at the games can turn into long term relationships.

By and large, using former athletes in marketing and endorsement deals gives advertisers a way to tap into the nostalgia that a former Olympian can offer. Putting up an ad showcasing Mark Spitz’ record of seven gold medals not only conjures up nostalgic excitement, it also draws attention to, and puts into historical context, Michael Phelps’ own current attempt to break Spitz’ record. Older athletes can sign on to endorse products whose market demographics match that of the athlete. Fifty-eight year old Spitz and 46-year old Nadia Comaneci are both sponsors for Botox, whose target market aligns closely with the two athletes.