Panasonic Holdings has announced that it will end its 37-year sponsorship of the Olympic Games, following the conclusion of the Paris Games.
The Osaka-based company initially became an official partner of the Olympics in 1987 and extended its support to the Paralympics in 2014. Throughout its tenure, Panasonic has provided technological support, products, and services, including the Technics turntables used at last month’s breaking event in Paris.
Panasonic is one of 15 companies that are TOP sponsors for the International Olympic Committee.
In a statement, Panasonic said it became an IOC sponsor in 1987 and expanded to the Paralympics in 2014. It did not make clear why it was changing course and said only that is was related to continual “reviews how sponsorship should evolve”.
This decision comes amid scrutiny over the turntables after a recent mid-air malfunction.
The International Olympic Committee (IOC) reported revenues of $2.295 billion from top sponsors between 2017 and 2021, making sponsorships the second-largest income source for the Olympic movement, with broadcasters contributing $4.544 billion during the same period.
Panasonic’s decision follows a comprehensive review of its sponsorship strategy and extensive consultations with the IOC. The company stated that the move aligns with its broader management considerations.
IOC President Thomas Bach expressed understanding and respect for Panasonic’s decision, noting that the partnership will conclude on amicable terms.
Two other Japanese companies are also among IOC’s 15 TOP sponsors. Toyota Motors, which for several months has been reportedly ready to end its its 10-year contract that expires this year, was contacted Tuesday by The Associated Press but offered no new information.
“Toyota has been supporting the Olympic and Paralympic movements since 2015 and continues to do so,” Toyota said in a statement. “No announcement to suggest otherwise has been made by Toyota.”
Per ESPN, Toyota had a contract valued at $835 million – reported to be the IOC’s largest when it was announced in 2015. It included four Olympics beginning with the Pyeongchang 2018 Winter Games in South Korea and ran through the just-completed Paris Olympics and Paralympics.
Japanese news agency Kyodo, quoting unnamed sources, reported several months ago that Toyota was unhappy with how the IOC uses sponsorship money. The report said the money was “not used effectively to support athletes and promote sports”.
Reports in Japan suggest Toyota may keep its Paralympic Olympic sponsorship.
Aside from Panasonic and Toyota, IOC TOP sponsors are: ABInBev, Airbnb, Alibaba, Allianz, Atos, Bridgestone, Coca-Cola, Deloitte, Intel, Omega, P&G, Samsung, and Visa.
ESPN further reports:
Japan was once a major font of revenue, but increasingly the IOC has sought out sponsors from China, with increasing interest from the Middle East and India.
“We would love to welcome a first new TOP sponsor from India and I am sure that this is going to happen very, very soon,” the IOC’s marketing director, Anne-Sophie Voumard, said last month at the Paris Olympics.
“It’s a very, very dynamic program,” Voumard said on Aug. 7 of the TOP slate, adding “partners come and go depending on their business strategy.”
The IOC had income of $7.6 billion in the last four-year cycle ending with the Tokyo Games. Figures have not been released yet for the cycle ending with the Paris Olympics.
The IOC’s TOP sponsors paid over $2 billion in that period. The figure is expected to reach $3 billion in the next cycle.
