The Greatest Innovation in Olympic History
No, it is not the BMW designed USA bobsled, the Lockheed Martin designed Mach 39 speedskating suits, instantaneous video replays on iPads, Shawn White’s frontside double-cork 1440 in half pipe or Usain Bolt’s golden shoes.
No, perhaps the single greatest innovation for the athletes training for the Olympics is “Crowdfunding”. In case you are not familiar with the concept, here’s a definition, “crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.”
There is now a suite of relatively new online social media tools that allow athletes, Olympians and potential Olympians to cash in on the largesse provided by the intersection of goodwill and true need.
By using the power of social media to gather a large number of small donations, athletes are able to find financial support to cover their expenses. Some examples of these sites include GoFundMe.com, IndieGoGo.com, Dreamfuel.com, and Rallyme.com
Except for a small handful of “A-list” athletes like Shawn White, Usain Bolt or Michael Phelps, most Olympic athletes toil in anonymity for more than a decade in order to make an Olympics and scrape by through a combination of parental support, off-season jobs, and small stipends from their sports federations.
For well-to-do athletes or those in high profile sports (snow-boarding, figure skating, skiing) where ample funding is available a single-minded focus on training and preparation is all that is required. This is also the case for many athletes from nations that fully fund their athletes, think Russia or South Korea.
For the rest, a constant ever-present worry is “how will I pay for this?” -be it new equipment, travel, lodging or even food. At its extreme it reaches the levels that Emily Scott, an Olympian in short track speedskating, faced. With a mother and a sister behind bars and raised by a single father with a blue collar income, Emily, at one point, was forced to rely on food stamps to feed herself.
One might think that making the Olympic team would finally put these fears to rest, but in reality that success breeds a whole new brand of financial worry. Sure, now their travel and food and lodging are covered to travel to the games, but just as abruptly parents and others who have played significant support roles are faced with massive expenses to try and get to the games.
Olympic qualifying trials are often held close to the date of the Games themselves to ensure the very best team is selected, but this then creates the situation of the parents and supporters of the Olympian having only weeks to find flights and lodging in cities that have been booked solid for months and with flights subject to the supply and demand algorithms of Sabre (the airline yield management software) and hotel pricing often reaching $1000/day or more at the Olympic site.
Even a week long trip to a place like Sochi or Rio can involve multi-leg flights to save money and then incredibly steep prices to find a place to stay anywhere remotely close to the venues. Craig Scott, Emily’s father came to the Olympics, thanks in large part to crowdfunding, but here was his flight plan: Kansas City to Chicago, Chicago to Washington DC. Washington DC to Istanbul, Istanbul to Germany, Germany to Sochi.
For middle class parents there are always credit cards, but what about young spouses, fiancés or boyfriends/girlfriends? Often those that participated or sacrificed the most are forced to watch and cheer from afar.
Crowdfunding has existed for years in various forms – be it innovations looking for startup money, patients needing medical treatment seeking support, or artists with a new idea, but this emergent social media platform is potentially at its best in supporting potential Olympians. Finally there exists a way to tap into the general support of the USA! USA! Spirit and collect large numbers of small sums to support the real needs of an athlete and their family.
Emily Scott is perhaps the most direct example. After applying for foodstamps she decided to create a GoFundMe page and at the same time had the luck of a USA Today article to lend visibility to her plight. In particular, other than feeding herself, she was most anxious that her father Craig would join her in Sochi. 24 hours later she had $30,000 in donations – most of them small, but in quantity, and a few months later before the games she had over $50,000 from more than 650 donors – more than enough to ensure that her father could join her at the games.
The list of athletes receiving significant support is substantial – from Emily Scott raising over $50K to fellow short track speedskater Kyle Carr raising $14,000 to bring his mother to the games. Lindsey Van, part of the new retinue of women’s ski jumpers, raised $20,000, Sugar Todd a long track speedskater raised almost $6000 to bring her parents to the games, while teen brothers and Danny and Drew Duffy raised over $50,000 on RallyMe to cover their expenses.
Others, though have struggled with getting visibility in order to generate support. Bobsledder Elana Meyers has only raised $738 to date proving that just having a campaign is no silver bullet.
Through Crowdfunding, hundreds of thousands of dollars have been raised to ensure that those that compete, and those that sacrificed for their success have the support required to share in the experience. This is particularly important given the relatively new tradition of the “Order of the Ikkos” award where each medaling Olympian gives a medal to the one person who supported them the most. It would be hard to give a medal to someone thousands of miles away because they couldn’t afford to come….
Epilogue: The Post Olympic Hangover
I am particularly envious of this emergent source of funding. After graduating college I trained full time for eight years and made one Olympic team where I earned a silver medal. Along the way I used credit cards to fund my dream. As a recent college graduate I was able to apply for an receive over 50 credit cards which I used to pick up and rotate $87,000 in debt to by the time I retired from the sport. My parents also spent years paying off their visit to Lillehammer, Norway. Here’s a REAL picture of the 50+ credit cards I used to fund my dream. I eventually paid them all off as well as my student loans – last year, nearly 20 years later.
For olympian Alex Izykowski, the burden fell to his parents, who are still filling in the financial hole they dug to ensure his success and bronze medal in the 2006 Torino games. “My hometown community really pulled together to help fund my family’s expenses to travel to Torino, but the 10 years of debt we accrued leading up to my Olympics is an ever-present burden they are still paying off.” Alex’s dad agreed, saying, “Its like a post-olympic hangover you can’t shake.”
Sadly it is hard to ask for crowdfunding support in retrospect so Alex and his parents have little to no opportunity to tap into this emergent funding source. However, for new athletic hopefuls, crowdfunding fuels an olympic dream while reducing the post-apocolyptic olympic hangover.
image credit: circanews.com
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John Coyle is a Professor of Business Innovation, Fellow Innovation Leadership, Maddock Douglas; Commentator & Analyst, NBC Olympics; world-class athlete, and author. John has a B.S in Product Design from Stanford and a MBA from Northwestern Kellog School of Management. More from John @coylejohnk and johncoyle.com