Reports out of Japan this morning suggest that Toyota will not be renewing its partnership with the International Olympic Committee after Paris 2024.
When announced in 2015, the automobile brand’s deal was reportedly valued at $1.2 billion. The partnership extended across four Olympic Games and ended at the end of the 2024 Paris Games.
Japanese News agency, Kyodo is reporting that stakeholders inside Toyota have been dissatisfied with how sponsorship money has been handled. According to sources close to the brand, many believe the money has not been used effectively to support athletes and promote sports.
Toyota has declined to comment on the reports at this stage, saying that it has “an agreement with Toyota until the Olympic Games Paris 2024”. “We continue to work closely together in preparation for Paris and we look forward to bringing these plans to life,” the IOC told the Associated Press.
During the 2021 Tokyo Olympics, the car manufacturer pulled its advertising in Japan to reflect public outrage that the games were being held during a global pandemic. While the IOC did not publically comment during the time, it shortly after confirmed that its agreement with Toyota would extend into the Paris Olympics. This year, Toyota will supply 3,000 fuel-cell vehicles for the Paris Games to showcase its green technology.
The Olympic Games are reliant on sponsorship money, with approximately 30 per cent of revenue coming from this stream. In 2021, top-tier sponsors, including Toyota, Airbnb, Alibaba, Coca-Cola, Deloitte, Visa, and Samsung, accounted for nearly $2 billion in revenue. This year, that number is expected to be topped by nearly $1 billion.
