SPORTS

THE HIDDEN PARTY CIRCUIT IN BEIJING

The scale of business entertaining rivals the sports themselves

JONATHON GATEHOUSE September 1 2008
SPORTS

THE HIDDEN PARTY CIRCUIT IN BEIJING

The scale of business entertaining rivals the sports themselves

JONATHON GATEHOUSE September 1 2008

THE HIDDEN PARTY CIRCUIT IN BEIJING

SPORTS

BEIJING 2008

The scale of business entertaining rivals the sports themselves

JONATHON GATEHOUSE

Inside the holy of holies, the air is sweet and cool. Chefs in white tunics preside over a scrumptious buffet, frying shrimp to order, doling out dumplings, and making sure the muggy Beijing weather never melts the chocolate from the profiteroles. The circular, goldfish-filled aquarium bar serves gelato and, among other things, a very drinkable “Petit Bourgeoise” Sauvignon Blanc. Flat-screen TVs silently play live feeds from selected venues. And if members of the International Olympic Committee really insist on knowing what their home athletes are up to, there’s a results terminal— discreetly tucked behind the water wall decorated with the five linked golden rings.

But it’s the little touches that make the IOC’s Olympic Club, the hospitality lounge exclusively reserved for Games bigwigs, the crème de la crème of sponsors, and their special guests, such a pleasant refuge. Attendants greet you with a cool cloth so that you might wipe the perspiration from your brow. The chauffeurs, rather than waiting outside

with the Audis, official car of Beijing 2008, have a corner all to themselves. And by the door there is a stack of parting gifts—little red boxes containing pins that read, “I Was in Awe at The Best of Us.” As the sign over the door says, “Vivez les Jeux.”

The biggest athletic spectacle in the world has a side few of the assembled athletes, fans, or media, ever experience; a tightly sealed Olympic bubble of luxury hotels, top restaurants and lavish parties. A record 63 companies have paid dearly for the right to attach their brands to the 2008 Summer competition. The dozen Olympic “Top Sponsors”— including Coke, Samsung, Johnson & Johnson and McDonald’s—have ponied up $866 million (an average of $72 million each) to splash their logos at every turn at the Games, and use the rings in their worldwide advertising. The remainder have opted to become “partners,” “supporters,” or “suppliers,” in declining magnitudes of visibility, access and cost. But they all have one thing in common: planeloads of senior executives, top-flight clients, and their freeloading relatives, who have touched down in Beijing expecting to be shown the time of their lives.

The scale of corporate entertaining—and the logistics of housing, feeding, transporting and entertaining tens of thousands of VIPs—have come to rival the preparations for

the athletes themselves. Near the Bird’s Nest stadium, the “Olympic Family Hospitality Compound” boasts a dozen chic lounges, including the Olympic Club. Luxury hotels have been turned into sponsor headquarters, with free watering holes, dining rooms open late into the night, and help desks to hook guests up with event tickets or daily tours. Fine restaurants have been booked out years in advance, their tables reserved for power lunches or gala dinners. And every night, sporting federations, businesses and bid cities (Chicago, Rio, Madrid are all here plugging 2016 bids) throw competing bashes at upscale clubs and national “Olympic Houses.” Almost all out of sight of prying eyes.

While sponsors bombard the assembled world media with invites to their public “showcase” pavilions on the Olympic Green (J & J has five of the famous terracotta warriors from Xian, and TV monitors that loop stories from ordinary victims of the Sichuan earthquakes), they are uniformly tight-lipped about the delights in store for their corporate guests. After much prodding, someone from Canada’s Manulife Insurance sent a brief note describing their entertaining as “purely internal.” And Coke, an Olympic sponsor since 1928, won’t talk about “the size, cost, or location” of its VIP efforts in Beijing. “We do have a hospitality program for our guests, bottling partners and employees, but we try to maintain a level of privacy for them so they can enjoy their Games experience,” says Petro Kacur, a spokesman for the beverage behemoth.

The sponsor reticence is understandable. A week-long package, including first-class airfare, luxury hotel, meals, tickets, ground transportation, outings and entertainment can cost more than $10,000 per VIP.

Canada’s Dick Pound, who first came to the Games as an athlete in i960, and has attended every one since ’72 in Munich as a member of the Canadian Olympic Committee, and now the IOC, says hospitality has always been part of the deal. “But it’s a lot more sophisticated now.” The lure of ready access to China’s consuming masses fetched the IOC some $200 million more, from just its “Top Sponsors,” than in Athens or Sydney (Pound negotiated all three agreements). And

the amount being spent to “activate” those deals, through advertising, promotion and corporate hobnobbing, has also expanded exponentially. “To support your sponsorship, you are going to invest between two and three times your initial outlay,” says Pound.

But at what point do the parties start to overshadow the competitions themselves? A hallmark of the Beijing Games—hyped as the first ever Olympics to “sell out” all its events— has been the empty sections of prime seating reserved for mostly domestic VIPs and corporate guests who can’t be bothered to show up to even big-ticket events. And in less popular sports like softball or water polo, if the match involves anyone other than China, the crowd is strictly family and friends. Whatever the perceived downside, there’s no going back, says Pound. “You really can’t run an international sports system, and Games like these, without private sector support,” he says. “If it was just governments doing it, nothing would ever happen.”

The “Winter in Summer” Vancouver 2010/ Sochi 2014 party on the first Sunday of the Games turned out to be more like “Autumn in Bangladesh.” A torrential downpour forced the crowd into the few small rooms at the mostly outdoor Bosco Club, a pavilion on

trendy Houhai Lake that serves as Team Russia’s official headquarters. No one was taking shots on the rain-slicked miniature hockey rink. And while star attraction Alexander Ovechkin kept dry in a private dining room, a decision to relocate the band in front of the one indoor bar forced thirsty guests to dash to an outside cooler for beverages. (It turns out that Russian beer is helpfully labelled with numerals denoting its alcohol content/ approximate length of your jail sentence should you drive after drinking it.)

Splashier than anticipated, but still a hot ticket, the event was VANOCs only major event in Beijing. With nine worldwide top sponsors, six “national partners,” 10 “official supporters,” and 26 “suppliers” already inked for 2010, there is little value in hustling for business. The organizing committee is running a small hospitality lounge at the Kunlun

FOR EXECS USED TO STAR TREATMENT,

THE GAMES CAN BE A LESSON IN HUMILITY

Hotel and will host some private receptions at the government of British Columbia’s pavilion on the edge of Tiananmen Square, but in Olympic terms, is keeping it low key. A bigger concern, says Dave Cobb, VANOC’s executive vice-president, is acquainting a tour group of 40 representatives from 2010 sponsors like Bell and RBC with what their clients will expect from them when it comes to Olympic hospitality. “We’re really trying to give them an overview,” says Cobb. “It’s not so much help—they’re very sophisticated at doing this type of thing—but more a matter of showing them all the ways they can engage with the public and their guests.”

Eighteen months out, VANOC already knows its biggest challenge: satisfying the ticket desires of all the levels of sponsors and the participating Olympic committees, while honouring a pledge to put 70 per cent of seats up for public sale. “Vancouver’s a popular destination,” says Cobb. “All our partners seem to be sending a lot of people.”

As the corporate entertainment side of the

Olympics has grown, managing expectations has really become the name of the game. Len Ölender, managing director of Sportsworld Pacific, one of a half-dozen firms with deals to package Games trips for fans around the world and run on-the-ground hospitality operations for sponsors, says it all starts with tickets. The bigger the sponsorship deal the more seats available—for purchase—for your guests, and the greater the “Olympic Family” perks they can access. But for many politicians and executives, used to VIP treatment at home, a trip to the Olympics can be a lesson in humility. “The Games has strict restrictions for security, and some clients aren’t used to that,” says Ölender. “And it can cause trauma when a prime minister isn’t used to getting on a bus to go to an opening ceremony, but he has to.” Sponsors of national teams, crucial domestically, also have little pull at the Games. “It’s very hard for us to create an official-looking program to make sure the expectations are met. They have no access to the special sponsor lounges so we have to create our own.” The key to keeping all the many strata of corporate guests happy, says Ölender, is to show them that, even if they aren’t the top dogs, there are many more people further down the pecking order.

Such an Olympic truism is in full effect on a Thursday night at one of Beijing’s less glamorous hotels. The National Olympic Committee of the Republic of Palau is hosting its one big reception, at a hospitality suite it shares with five other Oceania nations. Palau, with a population of20,000, sent five athletes to Beijing, and all are in attendance, including Jesse Jay Tamangrow, scheduled to run his 100-m heat in a little more than 12 hours. There’s beer and wine, Peking duck, and a selection of finger foods. A table in the corner features a spread of traditional Palauan dried fish and nuts. The country’s budget for two weeks at the Games—accommodation, airfare, food and hospitality—is US$28,000, says Frank Kyota, president of the delegation. The money all comes from the IOC. After the Olympics, Palau stands to get another US$12,000 to $15,000 from a special development fund set up by the top sponsors. The dream is to eventually build an Olympic-sized pool.

The next morning Tamangrow finished seventh in his heat, with a personal best of 11.3 8 seconds. He beat a runner from Guinea. M