- Five factors to determining the worth of a gold medal -
TORONTO, June 24 /CNW/ - This summer, 225 Canadian athletes will be vying
for the honour of a gold medal at the 2008 Olympic Games in Beijing. The value
of a gold medal goes beyond the podium, and can mean thousands to millions of
dollars in lucrative sponsorship and endorsement deals, but only with the
right factors at play. LECG Canada, one of the largest independent business
valuation firms, has identified the key factors in determining the value of a
gold medal and its potential worth to an athlete.
"Chartered Business Valuators are trained to look at the future potential
worth of something including the intangible assets like personal brand and
marketability," said Howard Rosen, Managing Director at LECG Canada. "To
determine the future, we can look at the past and see what similar endorsement
and sponsorship opportunities have arisen as a result of a gold medal win to
indicate the future expected cash flow of a potential gold medal win. With
this said, the value of a medal can be significantly altered by personal
goodwill such as the athlete's sportsmanship and likeability."
The value in pride and status of a gold, silver or bronze medal to the
country is also something that is now being taken more seriously. The Canadian
Olympic Committee announced in 2007 the Road to Excellence program where,
starting with the Beijing Olympics, winners will receive $20,000 per gold
medal won, $15,000 for a silver and $10,000 for a bronze medal.
According to LECG, there are five factors to determining the worth of a
gold medal to an athlete:
1. Economic cycle: A gold medal four years ago may have been worth more
at that time than it will be now as companies feel the impact of a
looming recession and consider spending less in sponsorship and
2. Longevity: The length of an athlete's career and their staying power
as a medal contender has significant impact. Similar to fashion,
there is a window of time for athletes to peak not only playing their
sport, but to be the public darling.
3. Career history: Recent wins and world rank prior to entering the
Olympics plays a role in the ability to peg future winners.
4. Popularity of the sport: The more popular a sport among viewers or
fans, the more opportunities for endorsement. Events with wider
appeal command a higher value (i.e. track versus badminton).
5. Personal brand: An athlete's own persona and marketability in terms
of how well they connect with the audience before, during and after
their event has financial impact.
ABOUT LECG: LECG Canada is one of this country's largest independent
firms dedicated exclusively to providing expert opinion reports and testimony
in matters involving the valuation of business enterprises, financial damages,
personal injury damages, forensic accounting, computer forensics, electronic
discovery, and corporate investigations. Their professionals are consistently
recognized as experts in their fields in various levels of courts, government
agencies and tribunals in Canada, the United States, Europe, Asia, South
America and the Middle East.
For further information:
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