This unprecedented decision to allow arenas to retain or acquire naming rights during the Los Angeles 2028 Games is a departure from the norm and marks a shift in Olympic tradition. Previously, the International Olympic Committee (IOC) adhered to a “clean venue” policy, which prohibited any branding at sports venues. However, this change will expand the committee’s revenue streams, ushering in a model that could redefine the balance between Olympic principles and commercial interests.
What to expect from the new commercial model of the Olympic Games?
Los Angeles 2028 Olympic and Paralympic Games will, for the first time in Games history, allow venue naming rights, organizers said on Thursday, unveiling Comcast and Honda 7267.T as inaugural partners in a move aimed at boosting commercial revenues.
The pilot program, developed with the International Olympic Committee (IOC), will let qualifying LA28 partners retain existing venue names during the Games and buy additional marketing assets. It also opens naming rights for up to 19 temporary venues to worldwide Olympic partners and LA28 sponsors, while standard “clean venue” rules continue for non-partner sites.
“Anytime you’re the first to do something in the context of the Olympics, it’s a big deal. It’s a big opportunity for us and it’s a big statement of support from the IOC. We think it will be a really powerful platform and opportunity in the commercial sector, so we’re really excited”. LA28 chair Casey Wasserman told Reuters.
First agreements and financial impact
Comcast CMCSA.O will lend its name to the Comcast Squash Center at Universal Studios, where squash will make its Olympic debut on the Courthouse Square backlot. Honda Center in Anaheim will become the first arena to keep its name during an Olympic competition, hosting indoor volleyball.
Wasserman said the deals introduce a “new commercial model” for the Olympic movement. The IOC traditionally enforces strict branding rules during the Games, masking corporate signage at competition venues. He noted money from selling venue naming rights would be in addition to the overall sponsorship revenue target of $2.5 billion, which LA28 calls the largest commercial revenue raise in sports.
“Having said that, we think it could be significant. It’s a really powerful platform for branded partners of ours to engage with us and also with the globe, because it’s part of the broadcast. The reach is really stunning.”
What is the level of global visibility and logistical benefits?
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From a practical perspective, the potential for SoFi Stadium and Crypto.com arena to maintain their names during the Games will help fans navigating the city. Comcast, which holds U.S. broadcast rights through NBC and Peacock, said it would support LA28 “across our entire company,” including coverage and the squash showcase.
Honda, which in June was named the Games automotive sponsor, said its long-backed Anaheim arena would “step onto the international stage to power Olympic dreams,” according to Ed Beadle, a vice president at American Honda Motor Co. LA28 said additional naming-rights partners are expected as the three-year countdown continues.
Expectations for the Olympic future
The model adopted by Los Angeles will serve as a test for future editions of the Games, and this opens the door to important discussions about naming rights and how this issue needs to move forward, even with the Olympic tradition. This is because the measure guarantees a financial boost to the committee. But, in other respects, it raises debates about the risk of excessive commercialization of a sporting event.
The Los Angeles 2028 Games serve as a laboratory, a testing ground for this new project, improving and fostering debate on issues related to Olympic financing. This commercial innovation represents a move that could improve the relationship between tradition and modernity when it comes to the world’s largest sporting event.
GCN.com/Reuters