McDonald’s has announced the end of its partnership with the International Olympic Committee, a sponsorship which has been in place for over 40 years. McDonald’s is pulling out of its contract three years early.
“As part of our global growth plan, we are reconsidering all aspects of our business and have made this decision in cooperation with the IOC to focus on different priorities,” said McDonald’s global chief marketing officer Silvia Lagnado.
The IOC has no immediate plans to replace the key sponsor in the retail food category, instead undertaking a review of the sponsorship structure. The absence of McDonald’s means that the IOC will now have to make up nearly $1 billion for every four-year cycle.
While the partnership will end with immediate effect, McDonald’s will continue to be a sponsor of the 2018 Olympic Winter Games in PyeongChang as part of their commitments under a domestic marketing agreement.