COVID-19 Leaves Olympic Athletes Concerned About Sponsorships

Athletes competing in the now Tokyo 2021 Summer Olympics are left with concerns regarding their contracts and even being able compete in a year. Most of the contracts for the athletes are performance-based. If the athlete is unable to perform, they are unable to be paid.

Reigning gold medalist, United States shot putter Ryan Crouser, stated that his “contract is his salary.” Like many of the other athletes around the world, Crouser’s contract only runs through 2020 and rewards him for his performance in the Summer Games. Fortunately for Crouser, he is still able train in Arkansas and hopes that he can work to throw further and re-sign his contract with Nike for 2021.

As reported by the Dailymail, one athlete in the U.K. had a deal with a sponsor to potential reach £75,000 this year but could now be worth only £15k due to cancelled competitions. Ultimately, because of this delay, athletes end up missing out on lucrative opportunities like appearance fees, prize money, and other endorsements.

Paul Doyle, Atlanta-based agent of 50 USA athletes, estimates that 40 of them will need their contracts and deals restructured before heading into 2021. Its easy to say just sign a new deal that keeps things exactly the same but extend it for another year. However, the delay might impact an athletes chance or ability to compete in a year.

In this case, older athletes typically in their 30s who are planning for these Olympic Games to be their last, have the opportunity to sharpen their skills for another year. Although, one could argue it also increases the opportunity for injury ruining the opportunity to compete. On the other hand, younger athletes or those who have been performing well within the last year could now earn a contract and the opportunity to represent their country in 2021.

Both the athlete(s) and the sponsor are missing out on opportunities to make money. Athletes are losing money by not being able to compete. Sponsors or brands are losing money due to unusable ads or having to remake for next year, as well as the diminished opportunity for brand exposure during these games, the world’s biggest marketing event. Sponsors and even taxpayers will not only have to recovery economically from the global pandemic that is Coronavirus, but will also likely have to fork over even billions of more dollars due to the delay.

Some brands, like Nike who sponsors Crouser, have yet to respond to a request for comment. While Starling Bank, a sponsor of Team Great Britain, has stated that, “the most important thing is that we are positively supporting our athletes whatever happens.” Doyle seems confident that all sponsors will do their best to be fair to the athletes despite any financial hardships caused by Coronavirus, and absorb losses more so than putting it on the athletes. Ultimately, the athletes are losing a lot of money by not being able to compete and earn bonuses.

References:

• Coverdale, D., & Al-Samarrai, R. (2020, March 26). Britain’s top Olympians face financial crisis with Tokyo 2020 Games postponed. Retrieved March 27, 2020, from https://www.dailymail.co.uk/sport/sportsnews/article-8155351/Britains-Olympians-face-financial-crisis-Tokyo-Games-postponed.html
• Du, L., & Novy-Williams, E. (2020, March 24). Delayed Olympics Risks Turning Into a Giant Advertising Bust. Retrieved March 27, 2020, from https://www.bloomberg.com/news/articles/2020-03-24/delayed-olympics-risks-turning-into-colossal-advertising-bust
• Graham, P., & Anderson, M. (2020, March 25). Olympic Delay Leaves Athletes Uncertain About Sponsorships. Retrieved March 27, 2020, from https://www.nytimes.com/aponline/2020/03/25/sports/olympics/ap-oly-tokyo-olympics-postponed-sponsorship.html
• Macur, J., Crouse, K., Keh, A., & Futterman, M. (2020, March 24). Olympians Have Another Year to Prepare for Tokyo. It’s a Blessing and a Curse. Retrieved March 27, 2020, from https://www.nytimes.com/2020/03/24/sports/olympics/coronavirus-olympics-athletes-reaction.html
• Reynolds, I. (2020, March 25). Olympics Delay Means $12 Billion Games Just Got More Expensive. Retrieved March 27, 2020, from https://www.bloomberg.com/news/articles/2020-03-25/olympics-delay-means-12-billion-games-just-got-more-expensive