McDonald’s has ended its longtime Olympic sponsorship dating back to 1976, the International Olympic Committee announced on Friday. It has been part of the Olympics since the Montreal Games and although the split takes place with immediate effect they will continue to be a sponsor at the 2018 Winter Games in Pyeongchang.
“The IOC and McDonald’s have announced that they have mutually agreed to bring their worldwide partnership to an end,” an IOC statement confirmed. There is still 3 year of contract to run but McDonald’s has decided to cut ties with Olympic. It was one of the IOC’s heavyweight partners along with the likes of Coca Cola, Visa, Bridgestone, Panasonic, Toyota and Omega.
The IOC wrote: “In today’s rapidly evolving business landscape, we understand that McDonald’s is looking to focus on different business priorities.”
McDonald’s global chief marketing officer Silvia Lagnado commented: “As part of our global growth plan, we are reconsidering all aspects of our business and have made this decision in cooperation with the IOC to focus on different priorities.”
Over the decades the fast food chain has contributed hundreds of millions of dollars into the IOC’s cash tills and had a popular presence at every Olympic village since. At last year’s Rio Games their promotion of free meals for athletes triggered lengthy queues from sunrise to sunset.
“The scale of obesity and diet-related disease around the world is alarming, and although we can’t put this at McDonald’s door they must be aware that sponsoring the Olympics has now become ‘illogical’ and even in many ways ‘counterproductive’,” British sports marketing expert Patrick Nally told AFP.
“McDonald’s have many other ways of promoting themselves but the logic of them sponsoring the Olympics does not now fit with the current attitude to fast food,” Nally added.
Looking ahead to their last association with the Olympic movement next year, the IOC said: “McDonald’s will continue to be a sponsor of the Olympic Winter Games Pyeongchang 2018 with domestic marketing rights in the Republic of Korea only. The company will deliver its Games-time operations, including restaurants in the Olympic Park and the Olympic Village.”
The IOC said it had “no immediate plans to appoint a direct replacement in the retail food operations sponsorship category”.
The IOC, with over 500 employees on its payroll, receives 70% of its revenue from broadcasting rights, which for 2013-2016 rose by 7.4% to $4.1 billion compared to 2009-2012, according to IOC figures. The bulk of the revenue is paid out to international sports federations, national Olympic committees, and Games organizers.