The IOC has taken the extraordinary step of guaranteeing LA '28 at least $200M in additional revenue from a global auto sponsorship that has not been sold yet, LA '28 Chair Casey Wasserman said today. Toyota's TOP deal expires in '24. In the LA '28 deal announced yesterday, the IOC estimated its distribution of sponsorship revenue to the organizers would amount to $437M, part of the proposed $1.8B in total support for the Games. However, the public contract also notes that changes to the IOC's portfolio by ‘28 is estimated to increase the figure by $200M, but does not mention any specific category or firm guarantee. "What they have essentially done is guaranteed a minimum value to us from that category, in addition to the $1.8 (billion) that includes TOP sponsorship," Wasserman said. "In addition, if they don't produce that revenue, we'll get the category back and we think it might be worth a lot more than $200M given the way they've sold it and what might be included in that." The deal does not alter the standard formula determining how global sponsorship revenue is shared with local host committees. The $1.8B figure is based off an estimate of what that sum will be, based on a current assessment of the portfolio. Most experts believe the IOC's sponsor program will grow substantially in the coming decade, particularly with a guaranteed U.S. Games locked in. Wasserman said the total incremental financial benefit L.A. won by agreeing to wait -- ceding the top prize of ‘24 to Paris -- is between $300-400M, including $300M in growth of the sponsorship revenue (Paris is estimated to receive $1.7B in '24), $20-25M in interest costs saved by the IOC's plan to advance $180M to L.A. starting immediately and other waived fees and savings. The IOC also waived rights to any surplus. "That gives us the confidence that we'll have the resources necessary to take on both the additional four years and the mayor's youth sports program," Wasserman said.
