Fanatics agree to global E-Commerce rights for Olympics merchandise
Oct. 31. 2021
By Jacob Lyle
Image Source: Polygon
Global sports merchandise company Fanatics has now inked one of its largest deals with International Olympic community. As this is the Olympics first e-commerce deal. The revenue-sharing agreement gives Fanatics a percentage of sales from Olympics merchandise and extends to the 2028 Summer Games in Los Angeles. This will not carry over for sales of 2022 Winter Olympics as those are being hosted in China.
Financials of the pact weren’t disclosed, and Fanatics didn’t offer estimates as to how much it could profit this agreement.
“This is an exciting launch for us, as fans from an increasing number of territories will be able to purchase official Olympic merchandising and connect with the magic of the Olympic Games ahead of each edition,” IOC television and marketing executive Timo Lumme said in a statement.
Prior to this, Fanatics has already been in contract with the United States Olympic Committee as they have the right to sell merchandise with them. Revenues with this deal is estimated to increase largely in 2028 as the United States host.
Without future estimations, lets take a look of the revenue that could be available to Fanatics, reports projected 100 million from selling licensed products around the 2020 Olympics. For the 2016 Games in Brazil, officials initially estimated greater than 400 million in sales. And the 2002 Winter Games – the last Olympic games held in the states – generated 500 million for licensed products, according to the Salt Lake Organizing Committee.
The future is looking bright for fanatics !