The International Olympic Committee (IOC) sponsorships were expected to reach $6 billion in 2020.
This piece notes that while broadcasters and sponsors have supported the postponement of the Olympics Games due to COVID-19, both parties would currently be working out how best to manage the considerable sums of money already committed. As per WARC’s James McDonald, negotiating credits and refunds might be a possibility.
However, the overall financial impact on broadcasters could be discounted by the reduced expenses of covering the event. IOC’s global partnership members, which includes 14 major corporations, have decided to continue their sponsorships despite the postponement.
But local sponsors like Tokyo Gas are evaluating the conditions and costs for continuing. Sports Illustrated’s legal analyst, Michael McCann, cautions of legal implications if contract renegotiations fail.
[3 minute read]