Last week, at an event in Hollywood, the organizers of the Los Angeles 2028 Olympic Games announced that they are already on track to reach $2 billion in secured corporate sponsorships by the end of this year. This progress brings them significantly closer to the $2.5 billion goal needed to finance the event, which has a total budget of $7 billion.
The organizers’ optimism is due to growing interest from potential sponsors over the past six months, spurred by the success of the Paris 2024 Olympics, which generated renewed enthusiasm for the Olympic movement, as detailed in an ‘LA Times’ article.
EXPONENTIAL GROWTH IN SPONSORSHIPS
John Slusher, executive director of LA28‘s commercial operation, highlighted the accelerating pace of sponsorship deals to the Los Angeles newspaper: “I wouldn’t be surprised if we close three or four times as many deals this year, in dollar terms, as we did last year. Business is hot,” he said during the aforementioned meeting with sponsors at a Hollywood hotel.
Since Los Angeles was selected as the host city, organizers have pledged to generate enough revenue to cover the projected budget. Sponsorships represent a crucial part of this revenue, supplemented by contributions from the International Olympic Committee (IOC), ticket sales and merchandising.
THE CHALLENGE OF CLOSING THE FINANCIAL GAP
Despite initial deals with major brands such as Nike and Delta, announced sponsorships stagnated at 1.5 billion during the pandemic years. Closing this gap is essential, as state and local lawmakers have agreed to cover any shortfall with hundreds of millions of dollars from taxpayers.
The success of Paris 2024 has generated a “palpable buzz” around the Olympic movement, organizers say, which has helped revive interest from sponsors. However, with less than four years to go until the opening ceremony at the Coliseum and SoFi Stadium, time is pressing.
A UNIQUE OPPORTUNITY FOR LOS ANGELES
Los Angeles Mayor Karen Bass, who received the Olympic flag during the closing ceremony of Paris 2024, has always stressed the importance of the Games for the city. In addition to being a world-class sporting event, the Olympics represent an opportunity to revitalize the local economy and strengthen the image of Los Angeles as a global hub for sporting events.
Slusher, who joined the LA28 team last year after a stint with Nike, told the ‘LA Times’ that he hopes to announce new deals in the coming months, although he warned that “things could also take a different turn”. According to him, the next three months will be crucial in determining the success of the business strategy.
With the clock ticking, Los Angeles 2028 organizers are working to ensure that the Games are not only a financial success, but also a lasting legacy for the city and the Olympic movement. As Slusher noted, “if you want to be a part of this, it’s now or never.”
