Paris Olympics offer a reset for sponsors after years of troubled games

By James Rogers

Better time zones for viewers, fewer geopolitical and health concerns for upcoming Paris Summer Games - and the foreseeable future

The Paris Summer Olympics could mark a reset for major sponsors after years of games held against the backdrop of geopolitical issues and the COVID-19 pandemic, according to branding expert Jim Andrews.

"Everybody is hoping and thinking that 2024 marks the start of a new, more positive decade for the Olympics compared to the last one," Andrews, the founder and chief executive of A-Mark Partnership Strategies, told MarketWatch. "The host cities have not been without problems, with the exception of [the PyeongChang Winter Olympics in] 2018."

Andrews pointed to the human-rights criticisms of Russia and China, which hosted the Winter Olympics in 2014 and 2022, respectively; the delayed 2020 Tokyo Summer Olympics, which were held against the backdrop of the COVID-19 pandemic in 2021; and the concerns about the Zika virus that swirled prior to the Rio Summer Olympics in 2016.

Related: The Paris Olympics will cost an estimated $8.2 billion to host. Here's how that compares with other recent Olympics.

In contrast, Paris will be followed by the Milan-Cortina Winter Olympics in 2026, and the Los Angeles and Brisbane Summer Olympics in 2028 and 2032, respectively. "Everybody has got a lot more positive feeling about that," said Andrews. "For advertisers, it's much more of a comfort level."

Another positive for advertisers and sponsors, according to Andrews, is that for most of the forthcoming Olympics, U.S. audiences will not have to contend with as extreme time-zone differences of say, an Olympic Games in Asia.

On Wednesday, the International Olympic Committee awarded the 2030 Winter Olympic and Paralympic games to the French Alps - subject to conditions - and awarded the 2034 Winter Games to Salt Lake City.

Related: CrowdStrike outage thrusts Paris Olympics partner into the spotlight

The Olympic partner program includes longtime sponsors Coca-Cola Co. (KO), Visa Inc. (V), as well as Intel Corp. (INTC) and Alibaba Group Holding Ltd. (BABA) - which have both been worldwide Olympic partners since 2017 - and Airbnb Inc. (ABNB), which became a partner in 2019. Anheuser-Busch InBev (BUD), whose Budweiser brand sponsored the Qatar World Cup (and was subject to a surprise stadium beer ban), became an Olympic partner earlier this year. The company's Corona Cero will be the global beer sponsor of the Olympic Games.

Toyota Motor Corp. (JP:7203) became the Olympics' first-ever mobility partner in 2015. In May, Japan's Kyodo News reported that the automaker will end its top-tier Olympic sponsorship deal after the Paris games.

"In the U.S., we remain focused on maximizing our efforts for Paris 2024," said Toyota North America, in a statement provided to MarketWatch. "As a worldwide partner of the Olympic and Paralympic movement, any discussions regarding Toyota's sponsorship are conducted at the global level. We are unable to provide any comments on this matter."

Related: LeBron James selected as Team USA male flagbearer for Olympics opening ceremony

Toyota's global operation has not yet responded to a request for comment from MarketWatch.

Andrews told MarketWatch that if Toyota does end its Olympic sponsorship, from a marketing standpoint "that's a pretty big deal."

"It opens up the auto category," he added. "It will be interesting to see what the IOC does there."

Related: For Budweiser, Qatar World Cup has been a tale of tough logistics and quick thinking

Paris has hosted two previous editions of the games, in 1900 and 1924. The Olympics kicked off on Friday and end on Aug. 11, while the Paralympic Games start in Paris on Aug. 28 and end on Sep. 8.

-James Rogers

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07-27-24 0751ET

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