I INTRODUCTION

It is the summer of 1984. The city of Los Angeles was, albeit temporarily, the centre of global
attention – the Olympic Games was afoot. For the first time in history, the games would not be
sponsored by a single cent of government funding, forcing the organizing committee to take a
fiscally-conscious approach. To the surprise of critics and advocates alike, the Games resulted in
an impressive surplus of USD232.5 million despite USD546 million of expenditures. With the
backdrop of Montreal Summer Games 8 years earlier – which resulted in a financial burden not
repaid until 2006 – and a lack of any financially successful Game since 1932, this result was a
miracle.

The organizing committee had achieved this feat through a collection of successful deals in
broadcasting rights, private fundraising and, importantly, corporate sponsorships. Within the
marketing industry, another lesser-known miracle was taking place – the commercialization of
event sponsorship. Ever since, the value of association with the Olympic brand has skyrocketed,
with sponsors at the 2012 London Games paying USD100 million each for top-tier status. But
while some companies have the resources and willingness to invest in such deals, many seek to
capitalise on the event’s engagement though unofficial associations. The latter type of action has
been zealously coined by Jerry Welsh as ‘ambush marketing’. 1

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Rise of the pseudo sponsors: a history of ambush marketing Sportpro