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The IOC Shakes Up Olympic Tradition: Venue Naming Rights for LA28
The International Olympic Committee (IOC) has broken with tradition and allowed the sale of naming rights for Olympic venues, starting with the Los Angeles 2028 Games (LA28). This historic first for the Olympics and Paralympics marks a shift from the traditional "clean venue" policy to a "clean field of play" policy, where venue naming rights are permitted while sponsor logos are restricted from appearing on competition surfaces [1][2][4][5].
This change comes as a response to the increasing costs of hosting the Games, with the Tokyo Olympics in 2021 costing nearly $14 billion. Terence Burns, a former member of the IOC's marketing structures and the LA2028 bid committee, attributes the IOC's concessions to the high cost of the Games, exacerbated by inflation and the pandemic's impact on business activity [2].
LA28 aims to raise $2.5 billion in sponsorship revenue, the largest ever in sports [4]. The IOC has ensured that organizations participating in the TOP program receive privileges for naming rights for the Games' stadiums [6]. Companies such as Honda and Comcast have already secured naming rights for venues like the Honda Center and a squash center at Universal Studios [1][2][4][5].
However, the new policy is not yet being adopted by other major sports federations like FIFA or UEFA. The Paris Games in 2024 will cost around $9.5 billion, and only seven out of the stadiums used in the 2028 Games will be permanently active [3]. In contrast to the IOC, FIFA and UEFA maintain strict "clean venue" policies for their World Cup and Champions League tournaments, using generic stadium names during events and not currently allowing naming rights sales [3].
LA28 was not initially relying on government support, aiming to fund the project solely from non-budgetary sources. However, the organizing committee is behind schedule in attracting sponsorship funds, with only 70% of the planned $2.5 billion raised so far [6]. Even arenas that already had a sponsor's name before the Games had to be renamed to something neutral during the Olympics [7].
The budget for the LA28 Games is set at a modest $7 billion by today's standards, with only 19 out of the 32 stadiums used in the Games being temporary [3]. It is not unlikely that other organizations, such as FIFA, will follow the IOC's example and start selling naming rights for stadiums [8].
Despite the change in policy, the IOC has maintained its stance against commercial entities from stadium naming for many years [9]. The IOC's previous stance was against naming rights sponsorship for stadiums, even for participants in the TOP program, which includes major IOC sponsors [10]. The amounts for the additional payments for the named stadiums have not yet been disclosed [7]. At the 2026 World Cup, all arenas with named sponsors will have neutral names [7].
In summary, the IOC’s stance on venue naming rights has changed due to increasing costs and a need for new revenue streams starting with LA28, but this trend is not yet being adopted by other major sports federations like FIFA or UEFA [1][3][4]. The LA28 Games organizing committee is selling naming rights for stadiums involved in the 2028 Summer Olympics, a first in Olympic history.
The shift in the IOC's policies allows for the sale of naming rights for stadiums in the context of LA28's business endeavors, marking a significant move in the world of finance and sports. Companies such as Honda and Comcast are capitalizing on this opportunity by securing naming rights for Olympic venues.
Meanwhile, major sports federations like FIFA and UEFA have retained their traditional "clean venue" policies, refusing to sell naming rights for their events. As a consequence, the IOC's move to generate additional revenue through stadium naming rights may not yet be a trend followed universally in the sports industry.
