‘Increasingly political’ Olympics loses $835 million sponsor Toyota following Paris debacle

The International Olympic Committee lost another longstanding sponsorship deal in one month as Toyota announced its farewell.

‘Increasingly political’ Olympics loses $835 million sponsor Toyota following Paris debacle

Toyota to not renew it's deal with the IOC after the Paris Olympics (Image via Forbes)

The Paris Olympics had its fair share of distinct chaos and controversies. It ranged from gender row in boxing to the controversial imitation of The Last Supper. Likely so, the consequences of this are coming back turn by turn to the International Olympic Committee. Per recent reports, Japanese auto giant Toyota plans to discontinue its highest-level Olympics sponsorship.

In 2015, Toyota signed a 10-year contract with the International Olympic Committee (IOC). With the conclusion of the Paris Olympics, the prosperous deal might also come to an end. Chairman Akio Toyoda took to his firm’s podcast on YouTube to share the news with the public. While at it, he raised concerns over the fundamental aspects of the agreement becoming less significant to the committee.

I’ve wondered for a while now whether the event is truly putting athletes first. It is also becoming increasingly political.

Akio Toyoda via CNBC TV

The withdrawal of the deal would mean that Olympic logos presently carried by Toyota products will be eliminated. Additionally, Toyota will no longer provide vehicles to assist with the event. With the announcement, the automotive manufacturer is also pulling its sponsorship deal with the Paralympics. Regardless, Chairman Toyoda has stated that he will continue his financial support to the athletes.

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Toyota, IOC’s largest sponsorship agreement, was disclosed to be worth US$835 million when it was first signed. Allegedly, some executives at the company were taken aback by the way the money was being put to use. Additionally, the aforementioned executives suspected the sponsorship did not reach the heights of supporting athletes and promoting sports.

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Panasonic precedes Toyota in Olympic sponsorship withdrawal

While Toyota is the latest company to have withdrawn the deal with the Olympics and Paralympics committee, they sure weren’t the first. Fellow Japanese company Panasonic announced their retraction from the event earlier this month. Their contract ends the coming December and the electronics giant have set records straight with the Olympic committee.

Panasonic has made the tough call to end its 37 year long partnership that began in 1987 with the Olympics which further extended to Paralympics in 2014. The decision was made after regular management considerations after the chaos at the 2024 Summer Games. Apart from them, Bridgestone and Intel’s deals also expire in 2024. However, no similar information has been revealed by them.

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The International Olympics Committee grossed nearly $2.3 billion from its top sponsors between the period of 2017 and 2021. This was the second most significant source of income for the event. It remains to be seen who will replace companies like Toyota and Panasonic.