The postponement of the Tokyo 2020 Olympic Games to the next year will not affect the commercial commitment between the International Olympic Committee and the sponsors.
International Olympic Committee president Thomas Bach has confirmed that all the Olympics sponsors will retain their rights even if the Games have been postponed to next year due to the Coronavirus pandemic.
“It is a logical consequence that the sponsors of the Olympic games Tokyo 2020 that they keep their rights even if these games are organized in 2021,” Bach had confirmed in a telephonic conference with media. “These Games are called the Olympic Games Tokyo 2020 therefore for me it is a logical consequence that sponsors of the Olympic Games Tokyo 2020 keep their rights if these Games are organised in 2021.”
IOA will also honour the deals with the brands like General Electric and Procter & Gamble Co, whose contracts were expiring after the Games this year.
Meanwhile, sponsors have also assured their commitment towards the Games even as the Coronavirus lock downs will be severely impacting their entire ecosystem.
At least five of the 14 Olympic Worldwide Partners – Procter & Gamble, Intel, Airbnb, Coca-Cola and Samsung Electronics – have reaffirmed their commitment to the Games, states a report by SportsBusiness.
“As the longest standing sponsor of the Olympic Games, we remain committed to working together with the IOC and TOCOG [Tokyo Organising Committee] to create a successful and safe event,” Coca-Cola has stated. The multinational beverage brand’s deal with IOC runs till 2032.
“We will continue to work closely with the IOC and Games organisers to ensure a safe and memorable Olympic Games,” Samsung has reportedly confirmed to new agency Reuters.
Michal Payne, man behind the mega Alibaba Coca-Cola and diary brand Mengniu mega deals with the IOC, was optimistic that the brands would stand by the IOC decision.
“If there is a postponement of a year it probably serves their marketing agenda even better as right now campaigns have had to be put on hold,” SportsBusiness has quoted him as saying.
Tokyo 2020 Official Partner Japan Airlines has also confirmed its continued support for the Games.
The current Olympics cycle (2017-2020) was expected to see a 147% rise in sponsorship revenues, which were expected to reach ₹ 2.46 billion from $ 1 billion in the four-year cycle which has ended with the Rio de Janeiro Olympic Games four years ago.
However, the question on the status of the deals which will come into effect from 2021 for the next Olympics cycle still remains unanswered.