LA Olympics facing funding crisis as major sponsors pull out

Sports fans are counting down the days to the 2028 LA Olympics, but the International Olympic Committee (IOC) is in serious trouble now after losing three of it's major sponsors – Panasonic, Bridgestone, and Toyota.

These companies were part of an elite group of 15 TOP Olympic sponsors who dished out over $2bn (£1.64bn/€1.82bn) to the IOC in the last four-year cycle. Toyota confirmed On 1 October 2024 that it wouldn't renew its partnership post-Paris Games. Chairman Akio Toyoda (pictured) expressed his discontent to US dealerships recently, doubting the IOC's direction, as reported by The Mirror.

"Honestly, I’m not sure they (IOC) are truly focused on putting people first. For me, the Olympics should simply be about watching athletes from all walks of life with all types of challenges achieve their impossible," he remarked. Despite this setback, Toyoda assured continued support for individual Olympic and Paralympic athletes, and the Paralympic Games themselves.

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In 2015, Toyota secured the largest sponsorship deal with the International Olympic Committee (IOC), reportedly worth $835 million (£667 million/€802 million). The contract covered four Olympic events, starting with the 2018 Winter Games in Pyeongchang, South Korea, and concluding with the recently completed Paris Olympics and Paralympics.

Similarly, electronics giant Panasonic Corp., which has been an IOC sponsor since 1987, revealed last month that it will also be ending its partnership, citing "reviews on how sponsorship should evolve," though no specific reason was provided, per The Mirror.

The decision marked the end of a 37-year partnership between the IOC and Panasonic, the Olympics' longest-running and most impactful corporate sponsors.

The termination of the contract followed an agreement reached by the IOC and Panasonic, with the company changing its business environment and strategic goals.

According to the Daily Mail, IOC president Thomas Bach said: "Panasonic was a founding member of the Worldwide Olympic Partner Programme and has been a great support to Olympic Games organisers, National Olympic Committees, and athletes around the world."

The Los Angeles Olympics in 2028 will be the first Games in nearly 40 years not to have the help of Panasonic and all the technological help they bring to the event.

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At previous Olympic Games, the Japanese tech company provided essential broadcast equipment, such as commercial projectors and cameras, that have been integral to the Games' broadcast and ceremonial functions.

The IOC’s top sponsors include major brands such as AB InBev, Airbnb, Alibaba, Allianz, Atos, Bridgestone, Coca-Cola, Deloitte, Intel, Omega, Panasonic, P&G, Samsung, Toyota, and Visa. However, this week, tyre manufacturer Bridgestone Corp., an Olympic sponsor since 2014, announced it will not renew its sponsorship with the IOC after its current deal expires.

In a statement, the Tokyo-based company explained the decision was driven by "an evaluation of the company’s evolving corporate brand strategy and a recommitment to more motorsports-focused platforms," The Mirror reported.

It's believed that the trio's step back from the Olympics stems from the fallout over the postponed 2020 Tokyo Games, which led to a lack of exposure due to fan bans, spiralling costs, and a series of corruption scandals tarnishing the event, according to The Guardian.

The hunt for fresh sponsorship income is now likely to turn towards the Middle East and India, which is unlikely to be a popular move within the public eye.

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