Toyota is reportedly set to end its massive sponsorship deal with the International Olympic Committee after this year’s Paris Olympics. The contract, which runs through the 2024 Paris Games, was valued at $835 million and included the Winter Games in Pyeongchang and the upcoming Paris Olympics. Sources close to the matter claimed that Toyota was unhappy with the way sponsorship money was used by the IOC, stating that it was not effectively supporting athletes and promoting sports.
The decision to end the sponsorship deal follows Toyota’s withdrawal of its Olympic advertising in Japan during the pandemic-delayed Tokyo Games in 2021. This move was in response to public sentiment in Japan against staging the Olympics and the IOC’s efforts to proceed with the event. Toyota declined to comment on the reports and stated that financial details were private. The IOC did not provide a comment when contacted by the Associated Press.
The IOC generates 91% of its income from selling broadcast rights and sponsorships, with TOP sponsors contributing a significant portion of this revenue. The IOC had an income of $7.6 billion in the last four-year cycle ending with the Tokyo Games, with TOP sponsors paying over $2 billion during that period. This figure is expected to reach $3 billion in the next cycle, highlighting the significance of sponsorships for the Olympics.
Despite Toyota’s potential withdrawal, sports marketing experts believe that the IOC will likely find another vehicle brand to fill the gap. The Olympics are seen as a valuable property for sponsorships, given their high brand recognition and global reach. In addition to Toyota, other TOP sponsors include well-known brands such as ABInBev, Coca-Cola, and Samsung, highlighting the diverse range of companies involved in Olympic sponsorship.
The Tokyo Games were beset by corruption scandals related to local sponsorships and contract awards, with a government audit suggesting that the actual cost of the event was much higher than the official figure. The IOC’s contribution to the Tokyo Olympics was about $1.8 billion, with Japan officially spending $13 billion on the event, at least half of which was public money. The scrutiny surrounding the financial aspects of the Tokyo Olympics has raised concerns about transparency and accountability in future Olympic Games.
Looking ahead to the Paris Olympics in 2024, Toyota is set to supply 3,000 fuel-cell vehicles for the event to showcase its green technology. The IOC expressed its commitment to working closely with Toyota until the Paris Games and bringing their plans to life. Despite the challenges posed by the potential withdrawal of a major sponsor, the IOC remains focused on ensuring the success of the upcoming Games and continuing to engage with global audiences through its diverse range of sponsors.
