● From our sister site, TheSportsExaminer.com ●
The world’s largest automobile manufacturer, Toyota Motor Corporation, confirmed that it will not review its Olympic sponsorship agreement beyond the end of 2024.
Toyota Chair Akio Toyoda made the announcement on Toyota’s own media channel. In a lengthy interview in a 23-minute version of the “Toyota Times” podcast posted Wednesday, he played a portion of remarks he made – in English – to his U.S. dealers earlier in September in Las Vegas about Toyota’s Olympic sponsorship:
“What matters most is not sales records, but opportunity to help make people’s lives better, to help them achieve their dreams. This is the main reason we became the mobility sponsor of the Olympics and Paralympics in 2018, as the sponsor of over 250 Olympic and Paralympic athletes around the world
“Now, as you may know, we have decided not to renew our sponsorship with the IOC after Paris, because, honestly, I’m not sure they’re truly focused on putting people first.
“To me, the Olympics should simply be about watching athletes from all walks of life, with all types of challenges achieve their impossible.”
Toyoda noted that the company’s Global Team Toyota Athletes – 277 in all – had 179 of them make it to the Paris Olympic Games. And he had a special message for the American athletes – gathered on stage – that Toyota sponsors:
“Unfortunately, since Toyota will no longer be a sponsor of Olympics going forward, this also means we can no longer officially sponsor Olympic and Paralympic Team Toyota athletes. But I have a special surprise for you today. Are you ready?
“I have decided that Toyota will continue to provide the same financial support to you, and not only for you, but all our Team Toyota athletes around the world, for as long as you remain Olympians and Paralympians. How does that sound?
“In addition, we will also provide financial support to the International Paralympic Committee through our Toyota Mobility Foundation, to help increase opportunities for para-athletes, both on and off the field. And assist in the development of new technology and equipment to support their efforts.
“So, on behalf of all of us here, thank you for your partnership and we look forward to cheering you on in the future.”
The announcement was met with thunderous applause and visible astonishment on the faces of many of the U.S. athletes on the stage.
Toyoda explained further in the Japanese portion of the interview; this is from the automated English translation on YouTube from the original Japanese:
● “The decision was already made before the Paris Paralympic Games even happened, and yes, the 10-year contract was also a factor. But, you know, during the Olympics and Paralympics, that kind of news came out.”
● “As I said in this speech, I wonder if it’s people first or not. I wonder if it’s athletes first. Yes, that’s why political positions have become stronger, so I think it’s a little more important. I’ve always had doubts about whether it’s OK to say that to the players, but that’s the reason why I decided to quit this time.”
Report in other media have reported Toyoda’s comments as “With the increasing political undertone of the games, we were wondering if this was the right way to go.”
He also noted that the 1964 Olympic Games in Tokyo was held in October, in a better season for Japan, and the 2020 Games (in 2021) was held in August – much warmer – noting “the time zone is adjusted to the United States.”
Toyota’s decision not to extend its Olympic sponsorship raises questions, of course, especially for the LA28 organizers:
● Will the IOC release this category to the U.S. Olympic & Paralympic Properties team for sale?
● With Toyota out of its Olympic sponsorship, what will happen to the company’s U.S. sponsorships of USA Track & Field, USA Swimming and other national governing bodies?
There is also the question of the LA28 budget, as the Host City Contract with the IOC included:
“for indicative purposes only, based on the experience of the IOC from previous editions of the Games of the Olympiad and without taking into account potential evolutions in the International Programme that may occur after the execution of the HCC (including, without limitation, potential renegotiations or renewals of current agreements covering key product categories which are forecasted to generate an estimated increase of USD 200.000.000 (two hundred million United States dollars) in the amount indicated below), the amount of the OCOG’s share of the net revenues (including cash and value-in-kind) from the International Programme foreseen under §8.1(e), is currently estimated at USD 437.000.000 (four hundred thirty seven million United States dollars).” (Emphasis added)
The LA28 revenue projection of $6.88 billion includes both the $437 million estimated in the Host City agreement and the expected additional $200 million from increased renewals. That money is not coming from Toyota now.
~ Rich Perelman
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