Nike is all set to become the sponsor of US Olympic Committee (USOC) through the 2028 summer Olympic Games in Los Angeles. This is the first long-term sponsorship deal cracked by the US Olympic and Paralympic Properties (USOPP).
While the valuation of the deal is yet to be known, the reports in Sport Business Journal state that the deal will cover the US athletes’ apparel and footwear, merchandise for the fans as well as uniforms for volunteers who will be the part of 2028 Olympics.
According to the reports, Nike’s current deal with the USOC (signed in 2014) is worth US$4 million annually and will end next year i.e 2020. The US athletics body is trying to put top-tier packages for the Olympic Games and USOC rights from 2021 to 2028. The deal will also include Team USA rights to the 2022 Beijing Winter Olympics and the 2026 Winter Games, which will likely be awarded to either Sweden or Italy.
Nike often does long-term deals; its MLB and NFL on-field rights are secured through 2030, and it’s tied up with USA Track & Field, the largest Olympic sport governing body, through 2040.
The Olympics host cities which include Tokyo (2020) and Paris (2024) are two of Nike’s most important foreign markets. Salt Lake City is expected to bid for the 2030 Games, and the outcome of that bid will decide whether Nike decides to exercise its option to extend the deal or not.