Nike and Los Angeles 2028 Olympic Committee are reportedly finalizing a mega deal, which will see the US sports and apparel brand become an official sponsor of the 2028 Olympic Games and Team USA through that year.
Nike will also have the option to extend the tie-up to the next edition of the Olympic Games in 2032. This may apparently be the first sponsorship agreement for the 2028 Los Angeles Olympic Games.
The extensive pact is the first long-term sponsorship completed by US Olympic and Paralympic Properties, the joint sales venture of LA28 and the US Olympic Committee launched in January, sportsbusinessdaily.com has reported.
The comprehensive shoe and apparel deal will reportedly cover everything from consumer merchandise, volunteer uniforms and the outfits American medallists will wear on the podium.
Insiders are reported as saying that the joint venture will price top-tier packages for the ’28 Games and USOC rights from 2021 to ’28 well into the nine figures. Nike has been a USOC footwear and apparel sponsor since 2005, and its current agreement is believed to be worth about $4 million annually. The deal extends through 2020.
The market is speculating the deal to be worth $200 million as it encompasses so many different things.
Nike has a history of long-term tie-ups with major sports properties. MLB and NFL on-field rights through to 2030, tie-up with USA Track & Field, the largest Olympic sport governing body, through 2040 are a couple of prominent examples.
While early bird Nike’s exclusivity clause shuts the doors on rival brands for a direct association with ’28 LA Games, the competitors could still get a piece of the Olympic action via individual deals with Olympians and international Olympic contingents or through national governing bodies. Current Olympic rules make apparel manufacturers the only commercial marks permitted on athlete clothing at the Games, but Nike’s current rights are limited to podium wear and a “village” line. Competition uniforms are sold separately by national governing bodies, and athletes have the right to choose their own specialized sports equipment.