The Olympic rings in front of the Tokyo Olympic Stadium on July 20, 2021 ahead of the Tokyo 2020 Olympic Games.
BEHROUZ MEHRI | TBEN | Getty Images
The International Olympic Committee struck its first global e-commerce deal on Thursday, in partnership with Florida-based sports company Fanatics.
The revenue-sharing agreement gives Fanatics a percentage of Olympic product sales and extends to the 2028 Los Angeles Summer Games. The deal, however, will not include sales from the 2022 Beijing Winter Olympics, as China has a separate e-commerce deal with Alibaba.
Fanatics will manufacture items related to past and future Olympics and has already started producing items around the 2024 Paris Summer Games. The company also obtains the manufacturing rights to manufacture and sell Olympic rings.
Financial terms of the pact were not disclosed, and Fanatics did not provide estimates on how much profit it could derive from the IOC deal.
“This is an exciting launch for us, as fans in a growing number of territories will be able to purchase official Olympic merchandising and connect with the magic of the Olympic Games ahead of each edition,” said Timo Lumme, Director of Television and of IOC marketing. declaration. “We are looking forward to collaborating on this new store with the Paris 2024, Milano Cortina 2026 and LA28 organizing committees,” he added.
Fanatics already owned the e-commerce rights to Team USA through an agreement with the United States Olympic Committee. IOC deal expected to align it with more revenue, especially around the 2028 US Summer Games
Bronze medalist Simone Biles of the United States poses for the Olympic rings at the Tokyo 2020 Olympic Games Women’s Beam Medal Ceremony, Ariake Gymnastics Center, Tokyo, Japan on August 3, 2021.
Mike Blake | Reuters
It is not known what the IOC generated in merchandise sales for the pandemic-affected Tokyo Games last summer.
But to paint a picture of the revenue that might be available to fanatics, organizers have budgeted $ 100 million from the sale of licensed products around the 2020 Olympics. For the 2016 Games in Brazil, officials initially have estimated at over $ 400 million in sales. And the 2002 Winter Games – the last Olympic Games held in the United States – generated $ 500 million in gross retail sales of licensed products, according to the Salt Lake City organizing committee.
Fanatics plans to leverage a heritage line that features clothing, memorabilia, and other merchandise around previous Olympics, including the 1996 Atlanta Olympics. And the company’s “Olympic Collection” will target young consumers with toys and sports equipment products. The collections are available nationally, in Mexico and in European countries including the United Kingdom and Switzerland.
The IOC pact also helps to strengthen the economic divide of the fanatics. The company is valued at $ 18 billion after President Michael Rubin lured investors, including Japanese firm SoftBank, to inject money into the e-commerce giant.
In 2021, Fanatics launched a non-fungible token (NFT) company valued at $ 1.5 billion. Fanatics also said their collectible card company is worth $ 10 billion. He took over pretty much all of the e-commerce rights from Major League Baseball and aligned with the U.S. team with the e-commerce rights of the Dallas Cowboys.
Fanatics is also present in the world’s second largest economy, China. This division is a joint venture with investment firm Hillhouse Capital, an Asia-focused private equity fund with e-commerce and retail companies in Asia.
Fanatics estimates it will exceed $ 3 billion in sales this year and plans to leverage its user base of more than 80 million users to develop future digital offerings, including sports betting.
Disclosure: TBEN’s parent company, NBCUniversal, owns NBC Sports and NBC Olympics. NBC Olympics is the US licensee to broadcast all Summer and Winter Games until 2032.