Significant news courtesy of the Associated Press: “McDonald’s Corp (MCD.N) ended its 41-year-old sponsorship of the Olympic Games three years early, the International Olympic Committee said on Friday.”
A welcome change, yes, but definitely one that would have much more meaning and impact if it was due to the International Olympic Committee pulling the plug as a result of deeming McDonald’s an inappropriate sponsor (as opposed to McDonald’s pulling out for financial reasons).
Anyhow, some highlights:
* “McDonald’s deal would have run through the Tokyo Olympics in 2020, and bowing out will likely to save it hundreds of million of dollars if it had continued into the next four-year Olympics cycle and beyond.”
* “The company, first involved with the games in 1968 and a sponsor since 1976, was the Olympics’ food retail sponsor. Despite pulling out with immediate effect, McDonald’s will continue at next year’s Pyeongchang winter Olympics as a domestic sponsor.”
* “While terms of Olympic sponsorship are not disclosed, a source who negotiated previous IOC sponsorship deals said that top global sponsors like McDonald’s spend about $25 million a year or about $100 million for a four-year period that includes a summer and winter games.”
The more important question is why it is still socially acceptable for sporting events to largely be sponsored by purveyors of unhealthy foods and beverages.