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≡ ANALYSIS & OBSERVATION ≡
“Panasonic Holdings Corporation (Panasonic) today announced that the International Olympic Committee (IOC) and Panasonic have agreed not to extend their Olympic Partner (TOP) Programme agreement after the expiration of the current contract term at the end of December 2024.”
That’s from Panasonic’s Tuesday news release, which added:
“While the Panasonic Group’s support of the Olympic philosophy and its stance of supporting athletes who continue to rise to the challenge and sports enthusiasts remain unchanged, a decision to end the sponsorship has been made as the Group continually reviews how sponsorship should evolve with broader management considerations. As a result of this review, and after extensive consultation with the IOC, the parties agreed to refrain from renewing the Olympic and Paralympic Partner Agreement.”
IOC President Thomas Bach (GER) said
“The IOC understands and fully respects that the Panasonic Group has to adapt its business strategy. Therefore, this partnership is ending in a respectful and friendly way. The IOC would like to thank Panasonic and its Group CEO Yuki Kusumi, for over four decades of close partnership. Panasonic was a founding member of the Worldwide Olympic Partner (TOP) Programme and has been a great support to Olympic Games’ organisers, National Olympic Committees and athletes around the world. The appreciation of the IOC for Panasonic will continue.”
Panasonic’s product category was in audio-visual equipment category, including televisions, audio-visual equipment for broadcast and professional use, AV storage media, car navigation and related on-board entertainment systems equipment, and video surveillance equipment.
Another Japan-based sponsor, Toyota, was reported last May to end its Olympic sponsorship at the end of the Paris 2024 cycle, but has made no announcement itself. An inquiry by The Associated Press as to the status of Toyota’s TOP sponsorship received this reply:
“Toyota has been supporting the Olympic and Paralympic movements since 2015 and continues to do so. No announcement to suggest otherwise has been made by Toyota.”
Through the end of the Paris 2024 Olympic Games, the IOC partner program included 15 companies – headquartered in nine countries – of which 10 have committed so far for Los Angeles in 2028:
● ABInbev (BEL) ~ in for 2028 (MichelobUltra)
● Airbnb (USA) ~ in for 2028
● Alibaba (CHN) ~ in for 2028
● Allianz (GER) ~ in for 2028
● Atos (FRA)
● Bridgestone (JPN)
● Coca-Cola (USA)/Mengniu Dairy (CHN) ~ in for 2028
● Deloitte (GBR) ~ in for 2028
● Intel (USA)
● Omega (SUI) ~ in for 2028
● Panasonic (JPN)
● Proctor & Gamble (USA) ~ in for 2028
● Samsung (KOR) ~ in for 2028
● Toyota (JPN)
● Visa (USA) ~ in for 2028
Technology coordination provider Atos is going through a reorganization, Panasonic is out, Toyota has said nothing publicly and Bridgestone and Intel have been silent.
The IOC itself is in fine financial shape and will find new sponsors, mostly likely in Asia, with Chinese and Indian companies well positioned to join the party.
For the LA28 organizers, the real question is about Toyota or a replacement in the automotive category. From the 2028 Host City Contract:
“for indicative purposes only, based on the experience of the IOC from previous editions of the Games of the Olympiad and without taking into account potential evolutions in the International Programme that may occur after the execution of the HCC (including, without limitation, potential renegotiations or renewals of current agreements covering key product categories which are forecasted to generate an estimated increase of USD 200.000.000 (two hundred million United States dollars) in the amount indicated below), the amount of the OCOG’s share of the net revenues (including cash and value-in-kind) from the International Programme foreseen under §8.1(e), is currently estimated at USD 437.000.000 (four hundred thirty seven million United States dollars).” (Emphasis added)
The LA28 revenue projection of $6.88 billion includes both the $437 million estimated in the Host City agreement and the expected additional $200 million from increased renewals. Those amounts could come into question if Toyota does not, in fact, continue.
Another issue for the IOC and the U.S. Olympic & Paralympic Properties folks, the sales arm of LA28, is how the IOC will release categories for domestic sponsorships. Panasonic got into the Olympic world as a supplier (not sponsor) for the 1984 Olympic Games in Los Angeles for sound systems.
The “mobility category” – if Toyota decides not to renew – is more of question because it’s a big-money area for which the IOC may decide to wait. That won’t help LA28, which will need to make decisions in the next year or so about how to acquire the thousands of vehicles – cars, vans, motorcycles and trucks – it will need for Games operations. It would prefer to have a sponsor than to have to rent them.
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