The Contract Between Nike And Losangeles Olympic Committee Is Expected To Reach US $200 Million.

A sports event held in the main camp of the United States can not be ignored by Nike.

According to the sports business daily, Nike has completed talks with the US Olympic Committee and became the first official sponsor of the 2028 Losangeles Olympic Games.

The specific terms of the two sides are not yet clear, sources said. As part of the agreement, Nike will become the equipment sponsor of the US Olympic team. This is a provision covering American athletes and volunteers, and the brand will provide them with unified shoes and clothing.

However, American athletes only wear Nike equipment when they are on the podium and part of the field.

The competition clothing is sold separately by the major project associations, and athletes have the right to choose their own professional sports equipment brand.

In other words, Nike's competitors can still get a share of the Losangeles Olympic Games by signing individual athletes, other national teams or various sports teams.

In addition, people familiar with the matter pointed out that Nike has embarked on the design of the brand logo for the Losangeles Olympic Games.

As a sponsor of the 2028 Losangeles Olympic Games and the Team USA, Nike also has the right of prior negotiation, that is, it has the right to extend the sponsorship contract to 2032.

Since 2005, Nike has been the equipment sponsor of the US Olympic Committee, providing official footwear for athletes.

The last contract between the two sides began in 2014 and expired in 2020, with annual sponsorship amounting to about $4 million.

Rob Prazmark, President of the 21 Marketing entertainment marketing company, said that the value of the latest contract between Nike and Losangeles is expected to reach US $200 million, due to the wide range of merchandise and licensing facilities sponsored by its sponsors.

It is reported that Nike and Losangeles are still holding specific consultations on the agreement, hoping to increase additional terms to enhance paction value.

Due to the long distance from the Losangeles Olympic Games, the two sides will continue to improve the details of cooperation.

In addition to traditional cooperation such as equipment sponsorship, the deal may also involve many other interests, such as consumer goods, pformation of Losangeles's local stadium and brand naming.

With the first deal, the Losangeles Olympic Games are moving towards a target of $2 billion 500 million in sponsorship.

In August 2018, under the auspices of Losangeles Olympic Organizing Committee Chairman Kathy Wasserman (Casey Wasserman), the organization responsible for sponsoring Olympic Games was established.

At the same time, Losangeles Olympic Organizing Committee launched investment marketing plan, the goal is local sponsorship income of $2 billion 500 million.

The International Olympic Committee stipulates that the investment promotion for the Losangeles Olympic Games in 2028 will be launched as early as January 1, 2019.

Now, the window period just opened, Losangeles has ushered in the first big gold Nike.

Losangeles is considered to have sufficient time to attract more brand names because of its preparations for the event 10 years ahead of schedule.

According to the new marketing agreement, International Olympic Committee will also give Losangeles a series of incentives, including the provision of about $2 billion from sponsors and sales rights to support Losangeles's long-term marketing campaign and youth sports.

In addition, as a condition of giving up the right to compete with Paris for the right to host the 2024 Olympic Games, Losangeles also received $180 million from the International Olympic Committee.

In September 2017, the International Olympic Committee announced that Paris and Losangeles respectively became the host cities for the 2024 and 2028 Summer Olympic Games.

According to the preliminary plan, the two Olympic Games will be held from August 2, 2024 to August 18th and July 21, 2028 to August 6th.

The three party talks were successfully completed because the 2024 coincided with the 100th anniversary Olympic Games in Paris in 1924. Losangeles is willing to postpone the competition in Shuangcheng and postpone the Olympic Games until 2028.

Moreover, another reason for Losangeles's acceptance in 2028 is that the time is ample and the economic benefits of postpone the competition are even higher.

Author: Luo Yingying