Intel Corp said on Wednesday that it will become the main sponsor of the International Olympic Committee (IOC). The deal makes chipmaker another technology company that put its marketing dollars into the global sporting event, according to Reuters.
The new deal, which has until 2024, happening week after longtime sponsor of the Olympic Games McDonald’s Corp dropped the sponsorship contract three years before its expiry, citing a change in the priorities of the company.
Financial terms of the deal were not disclosed, but sources said the IOC told Reuters that major sponsors pay about $100 million for the four-year cycle that includes one summer and one winter Olympics. IOC seeks to increase the price of these transactions said earlier sources.
Intel joins a dozen sponsors of the World Olympics, as a CA. Coca-Cola, Samsung and Chinese e-commerce company Alibaba, which signed six months ago. IOC is trying to make the Olympic Games more technologically understandable and attract more young people through its Internet-based television network – Olympic channel.
IOC President Thomas Bach and CEO Brian Krzhanich said sponsorship of Intel will open a new expertise for athletes, fans and spectators in emerging areas such as virtual reality.
“It will allow people online can feel like they are there,” said Krzhanich during a press conference in New York.
“Intel’s vision is that building a better world is our business. Our vision is building a better world through sport,” said Bach. “So bringing together these two visions will allow us to make great progress with regard to experience through games, as well as promoting the values we are sharing. The Olympic games are about excellence in sport but also about connecting people and sharing this common experience of what it means to feel the Olympic spirit.
Intel will provide 5G wireless technology, virtual reality, artificial intelligence platform and drones that can be used to capture.
Chipmaker seeks to expand its influence in Asia, which is preparing to host three consecutive games. Seoul in South Korea will adopt the Winter Olympics in 2018, Tokyo will host the Summer Olympics in 2020 and Beijing – winter after two years. The IOC decided to host the Summer Games in 2024 between Paris and Los Angeles.
IOC seeks to sign more expensive transactions, while the brands are trying to understand whether the exclusive rights sponsorship of the Olympics provides marketing impact they had in the past. Some companies believe that it is much cheaper to work directly with athletes or specific countries than with the IOC.