Brazilian broadcaster for the Olympics, Globo sports will renegotiate its sponsorship deals worth $ 113.7 million after the Tokyo 2020 Games have been postponed to next year.
The IOC and the Japan Government on Tuesday had agreed to postpone the Games to next year in wake of the Coronavirus pandemic. Reports suggest that the IOC is now working on a July-August window in 2021 to conduct the Olympics.
Globo was in line to raise around R$580m in advertising sales from the Tokyo 2020 Games, Sports Business has reported quoting the Meio & Mensagem website. Deals will now need to be renegotiated individually with the sponsors and advertisers.
Globo holds Brazilian rights to the Olympics until 2032 as part of a long-term deal signed with the IOC back in 2015. The rights cover all platforms, including free-to-air television on a non-exclusive basis, and pay-television, internet and mobile rights on an exclusive basis.
“We were made aware of the postponement of the Tokyo Olympic Games by the official announcement. We were not previously consulted on the matter,” reads a Globo statement. “We understand that, at the moment, the priorities are the health and safety of everyone, and that is why we respect the decisions of the event organisers.
“What we can say is that, given the current scenario and the historical relationship of respect we have with our sponsors, the plans and projects related to the coverage of the Olympic Games will be discussed individually with each one of them after the pandemic.”
The broadcaster is reportedly getting diversified advertising interest from companies like banks and food delivery services as more people are watching television while staying at home during the pandemic.