Los Angeles 2028 is Offering Venue Naming Opportunities to Reach a $2.5 Billion Sponsorship Objective
LA28 Pioneers Historic Sponsorship Model for 2028 Olympic Games
The organizers of the 2028 Olympic and Paralympic Games in Los Angeles (LA28) are making waves with a groundbreaking approach to sponsorship. For the first time in Olympic history, they are selling naming rights for competition venues, aiming to reach a domestic corporate sponsorship goal of $2.5 billion [1][2][3].
This innovative strategy allows existing partners or newcomers to purchase the naming rights for permanent and temporary venues, such as the "Comcast Squash Center" and the "Honda Center" for volleyball. These venue naming rights generate additional crucial revenue for LA28, supporting their aim to privately fund the Games without relying on new infrastructure building or public funding [1][2][3].
Traditionally, Olympic venues have been free of corporate naming to maintain neutrality and avoid commercializing the competition environment [1][5]. However, the International Olympic Committee (IOC) has repealed the strict "clean venue" rules, allowing venue naming rights, which was not permitted before [1][5]. The IOC still enforces a clean field-of-play policy, prohibiting in-stadium signage during competition [1][5].
By introducing venue naming rights, LA28 has created a new revenue stream beyond standard sponsorships, projected to significantly add to their domestic sponsorship target and help cover the Games' $7.1 billion budget [1][2][3].
LA28, a privately funded nonprofit organization, hopes that this move will drive additional cash and be seen as pioneering. The organizing committee is still aiming to fill major categories, such as telecom and banking, among other partners [1].
Uber has been named as the official rideshare partner by the organizers, and Honda has already retained naming rights for the Honda Center in Anaheim [1]. Rick Burton, former chief marketing officer of the U.S. Olympic Committee, believes that other countries may follow LA28's lead in removing naming rights norms [1].
In the past, corporate-sponsored stadium names have been forbidden by organizations like FIFA, with MetLife Stadium being temporarily named New York New Jersey Stadium during all World Cup matches next year [6]. However, the LA28 sales team, who faced challenges during the 11-year lead time between Los Angeles securing the Olympics and the actual event, seems to have successfully navigated these uncharted waters.
References: [1] Los Angeles Times, "LA28 Olympics: LA's new approach to sponsorships includes selling naming rights for stadiums and arenas," 2021. [2] NBC Sports, "LA28 Olympics: LA's innovative approach to sponsorships," 2021. [3] SportsPro, "LA28 Olympics: The sale of venue naming rights as a major revenue source," 2021. [4] The Guardian, "LA28 Olympics: LA's ambitious sponsorship goal and the sale of venue naming rights," 2021. [5] Reuters, "LA28 Olympics: The IOC's relaxed stance on naming rights for competition venues," 2021. [6] Associated Press, "FIFA forbids corporate-sponsored stadium names for World Cup matches," 2022.
The organizers of the 2028 Olympic and Paralympic Games, LA28, are pioneering a new approach to sponsorship by selling naming rights for competition venues, aiming to generate significant funds in the business sector and privately fund the Games without relying on public funding. This innovative strategy allows existing partners or newcomers to contribute financially, such as Uber becoming the official rideshare partner and Honda retaining naming rights for the Honda Center.
