8/3/2019 Brazil Olympic Funding Taps Sports Marketing Gold

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Brazil Olympic Funding Taps Sports

Marketing Gold

Posted: 04/ 5/11 05:13 PM ETReact

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Barack Obama , Brazil , Olympics ,Eike Batista ,Gaming Industry ,Jacques Rogge ,Dilma ,Flamengo ,Gambling ,Interpol ,Ioc ,Mafia ,Online Gambling ,Organized Crime ,RioOlympics ,Robinho ,Ronaldinho ,Sports Marketing ,World News

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Ramping up for the 2016 Rio Games, Brazil is promoting tax incentives that will generate morethan $150 million for sports and special Olympics programs designed to take kids off the streetsand help them go for the gold.

The vehicle to make this happen is Brazil's uniquesports incentive lawthat allows companiesand individuals to invest a portion of what they would normally pay in income taxes in programsconnected to Olympic and paralympics sports. Companies can invest one percent of their tax billand individuals can invest up to six percent of what they would normally pay in taxes each year.

The sports ministry indicates that 103 organized sports activities are getting funding through thelaw, which could be modified to attract even more money.

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8/3/2019 Brazil Olympic Funding Taps Sports Marketing Gold

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While the Dilma government is wont to admit it, the law could provide an attractive vehicle forBrazil's super rich like former tennis star Jorge Paulo Lemann (net worth $5.3 billion) andmining magnate Eike Batista (the world's 8th richest person with a net worth of $30 billion).Batista, who was featured in a 60 Minutes segment on Brazil last November, once pulled out hischeckbook and gave Madonna a million dollars for a charity project.

Sports marketing, an adjunct of the entertainment industry, is becoming a major driver in Brazil'sconsumer economy. But the main focus is on professional athletics and personalities -- not theOlympics -- since big globalist companies who are active in the zone are more disposed to bankon the value propositions and merchandising opportunities they offer.

The value offutebol superstar Ronaldinho being contracted by Rio side Flamengo, for example,has been estimated at $120 million by Brazilian sports bloggers. As a yardstick, that figurerepresents 18 percent of the $745 million it took for Flamengo fan Barack Obama -- whoreceived a Flamengo jersey as a gift during his recent Rio visit -- to win the 2008 presidentialrace. Add the market value of superstars Ronaldo, Robinho, Neymar and Ganso and the figure

approximates the cost of the last Obama campaign.

While Obama is a big fan offutebol and the Olympics there are signs that that gambling interests-- legal and illegal -- are threatening the integrity and values promoted by the Olympicmovement since its inception in 1894.

International Olympic Committee president Dr. Jacques Rogge of Belgium, considered the mostpowerful figure in world sports, is concerned that sports betting on Olympic events willinfluence the character of the games and the sponsorship money that support the movement. The2012 Olympics will be held in London, considered to be a world center for legal sportsgambling.

Rogge estimates that illegal gambling currently generates$140 billion in annual revenueworldwide and he has proposed an international task force to address issues like eventmanipulation and irregular betting. Ken Noble, the former senior US treasury official who runsInterpolhas voiced supportfor Rogge's concerns saying that the threat can come from anywhereand that the time to act is now.

Brazil's Olympic funding scheme is a great way to give kids a chance to succeed through sports.But it needs to be complemented by programs that keep Olympic dreams from turning intoOlympic class nightmares.

With the legal gambling industryreluctant to support IOC president Rogge's call for them to helpfund Olympic programs it remains to be seen just how long sports marketers who use athletes asrole models can have it both ways.

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