LONDON – 24 July 2024– Hosting the Winter Olympics in Salt Lake City may lead to a boost for American soft power, according to Brand Finance, the world's leading brand valuation consultancy and experts on soft power.
The International Olympic Committee (IOC) has decided that France and the USA willhost the Winter Olympics in 2030 and 2034 respectively, with the final decision made at the Olympic body's session in Paris today.
Data on Global Interest
Brand Finance's latest global brand research study found that in France 11% of people follow Winter Sports, compared to 20% for 'Athletics / Olympics'. In the USA, 8% of people follow Winter Sports, compared to 20% for ‘Athletics / Olympics’. The keenest winter sports followers are Austria 31%, Finland 29%, Norway 28%, Switzerland 27%, Poland 21% and Sweden 20%. Outside of Europe, the country with the largest proportion of fans is China, where 13% follow winter sports, especially after the Beijing 2022 Winter Olympics. This information is used to assess how consumers exposed to sponsorships in these categories are influenced, to deliver return on investment to the brands.
Enhancing American Soft Power
Salt Lake City's selection as the host city for the 2034 Winter Olympics underscores the United States' cultural, diplomatic, and economic influence on the global stage. Hosting the Winter Olympics provides a remarkable opportunity for the USA to showcase its commitment to excellence in sports, innovation, and sustainable development, thereby enhancing its soft power and global prestige.
Economic and Cultural Benefits
The 2034 Winter Olympics in Salt Lake City is expected to stimulate significant economic growth by attracting international investments and boosting tourism. This event will highlight Utah's stunning natural landscapes and robust infrastructure, positioning it as a prime destination for travellers and businesses alike. The influx of visitors and global media attention will further solidify the USA’s reputation as a premier location for major international events.
Sustainability and Innovation
Salt Lake City's bid emphasises sustainability and technological innovation, in line with the IOC’s vision for future games. The focus on environmentally friendly infrastructure, renewable energy, and community engagement demonstrates America's leadership in addressing global environmental challenges. This sustainable approach not only enhances the USA’s international image but also sets a high standard for future Olympic hosts.
David Haigh, CEO of Brand Finance, said:
"The selection of Salt Lake City to host the 2034 Winter Olympics is a testament to the United States' enduring influence and capability to unite the world through sport. This event will not only elevate the USA's global standing but also drive economic growth, promote sustainability, and enhance its cultural prestige. We look forward to witnessing the positive impact of the Games on America’s nation brand value and international relations."
A Legacy of Sporting Excellence
The 2034 Winter Olympics in Salt Lake City will mark the fifth time the USA has hosted the Winter Games and the second time for Salt Lake City, which previously hosted in 2002. This event will build on America’s rich legacy of hosting successful international sporting events, promoting unity and sportsmanship on a global scale. The Games will provide a platform for athletes to inspire future generations and foster international cooperation.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
