The Olympics sponsorship deal signed by e-commerce giant Alibaba, running through 2028, could be worth $800 million.
Nither IOC nor Alibaba Group have not confirmed the value of the deal but reports seem to indicate that it is the biggest ever.
The deal will see Alibaba provide online computing service and data analytics for the Games through 2028. While it helps grow the merchandise business, Alibaba will develop an online Olympic channel for viewers in China.
Beijing-based sports consulting company, Shankai Sports, sealed the deal working closely with a team.
“It is potentially the single biggest, groundbreaking partnership the IOC has done to date”, Michael Payne, who was part of the team, said.
Alibaba is the first Chinese company to become the sponsor for the 2022 Winter Games at Beijing. The cloud and analytics services that Alibaba will offer positions it as a potential competitor to Google and Amazon.
Alibaba’s cloud services are very similar in offering to Amazon, now central to its marketing and expansion strategy. It is hoping to be a major in Japan in two years and expand presence worldwide. In its home market, a third of China’s websites are its customers.
The Chinese government is pushing sports in a big way and called companies to invest in sport, which have decided to walk the talk. The government had announced a plan to develop an industry worth $747 billion in sports by 2025.
Like Alibaba Group’s deal for the Olympics, in 2015 Dalian Wanda Group had become a top tier sponsor with FIFA.