For decades, United Airlines has sponsored the USA Olympic and Paralympic teams. But after the 2020 Summer Olympics in Tokyo, United will no longer be an official sponsor. Instead, Delta will.
The Los Angeles Times reports that the 2028 Sumer Olympics in Los Angeles just landed Delta as a sponsor. Although Delta has not officially confirmed the deal, it is thought to be worth $400 million, which is huge but still a small fraction of the $7 billion it will cost to host the games in Los Angeles. The sponsorship will run through 2028.
Meanwhile, United has elected not to renew is sponsorship. A United spokesperson glossed over the future, instead focusing on the past and present:
“United Airlines has enjoyed a longstanding partnership with Team USA athletes for nearly four decades and we are excited for the Tokyo Games later this summer. Even after our sponsorship ends, we look forward to cheering proudly for our athletes and their unwavering competitive spirit for years to come.”
But in a note to employees shared with Live and Let’s Fly by an insider, United is looking toward a different focus in the future:
Over the last 40 years, United has proudly sponsored Team USA Olympic and Paralympic athletes as part of our long-standing partnership with the United States Olympic & Paralympic Committee (USOPC).
While the partnership will remain through the 2020 Summer Olympics in Tokyo, United elected in 2019 not to pursue a renewed sponsorship agreement with the USOPC moving forward. Instead, we will focus on investing in our employees as well as initiatives that will improve the customer experience.
Even after our sponsorship ends, we look forward to cheering proudly for our athletes and their unwavering competitive spirit for years to come.
United won’t comment now on what those improvements to the customer experience or investment in employees are, but it is an interesting rationale considering United initially dropped $70 million for naming rights to the Los Angeles Memorial Coliseum (before protest from Angelenos who did not want the Coliseum “commercialized”, leading to an undisclosed settlement to name it “United Airlines Field at the Los Angeles Memorial Coliseum”). I bring that up because it arguably had a far lower return on investment than associating United with Team USA in promotions around the world.
CONCLUSION
Frankly, I’d rather see $400MN invested in the onboard product and in employees than in the US Olympics. I’m not a marketing major, but it seems to me meaningfully improving the customer experience will win a lot more loyalty than affixing the United logo to the USA Olympic team. $400MN can go a long way…
At the end of the day, investing in the Olympics is a marketing tactic. I’m positive that, with all of his number crunching, Scott Kirby determined it wasn’t worth the expense.
I love the Olympics (been watching since 1996) but have never really associated United nor any airline with it. I agree that the money can be put to better use by improving customer experience.
$400 million is a lot of money for just one summer Olympics. I believe the association is technically with the U.S. Olympic Committee rather than the “official” airline of the worldwide Olympics. IE, United is proud to fly Team USA.
The $70 million that United was willing to spend on naming rights was for 15 years.
Delta’s 400 million isn’t for 1 summer game, its through 2028 so 3 summer games and 2 winter games.
You are correct, but I never said it was for one game.
I’m always skeptical of statements like this to employees – especially in the airline business. “We’re reinvesting in YOU, our most important asset. But don’t ask us how. Or when. Or what. Just believe. The company wants what’s best for you, the employee. Trust us” And United is no different. It’s BS doublespeak. Why don’t they just say, “We didn’t see the ROI anymore that we used to and felt it was best to spend the money on executive bonuses”?
Sadly, I’m inclined to agree. Scott Kirby spending actual money to draw customers, particularly in coach where the vast majority of people fly? Dream on. I think there’s a picture of the guy in encyclopedias under Soulless Bean Counter.
$400 Million can go a long way! I’ll happily take half of it from then and vocally promote UA everywhere I go 🙂
Okay Scott Kirby, show us what $400M of improvements to customer experience looks like.