Panasonic has announced that it will be terminating its contract with the International Olympic Committee at the end of the year, joining a list of other Japanese companies reconsidering their involvement with the Olympics. This decision comes amidst concerns about the delayed Tokyo 2020 Olympics, reduced visibility due to COVID-19 restrictions, increased costs, and corruption scandals surrounding the Games.
Toyota, another major sponsor, has not confirmed its plans to end its contract but reports suggest that it may keep its Paralympic Olympic sponsorship. The IOC’s TOP sponsors, including companies like Alibaba, Coca-Cola, and Visa, contribute over $2 billion in a four-year cycle. Japanese companies seem to be turning away from the Olympics, possibly due to dissatisfaction with how sponsorship money is used by the IOC.
The Tokyo Games were marked by corruption scandals related to local sponsorships and contract awards, with a government audit suggesting that the real cost was double the official estimate. The IOC had income of $7.6 billion in the last four-year cycle, with expectations for that figure to reach $3 billion in the next cycle. As companies reconsider their involvement in sponsoring the Olympics, it remains uncertain how this will impact the future of the Games and their financial stability.
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