good morning.
With just one month to go until the Paris Olympic and Paralympic Games, where some 15,000 athletes will compete for medals in 32 sports, including “breaking,” or breakdancing, Kaitlyn Clark was not invited to join the U.S. basketball team, but stars such as Simone Biles, Katie Ledecky, Scottie Scheffler, Coco Gauff and Stephen Curry are expected to take part.
Marketers are betting big on Paris, with brands like Nike spending at record levels and Olympic media rights revenues up 20% compared to the COVID-19 Tokyo 2020 Games. Advertisements are already running at a Super Bowl-like pace. (This one from Deloitte, a sponsor of this newsletter, rivals P&G's “Thank You, Mom” in Rio in 2016.)
But despite the money abounding, only a few athletes become rich. “Sports is increasingly dividing the haves and have-nots, and opportunities for participation are declining,” Sarah Hirshland, CEO of the United States Olympic and Paralympic Committee, told me. “Sport is a powerful tool for human development, especially for women in business.”
Hirshland became CEO of the USOPC in 2018 to rebuild an organization that had failed to stop the abuse of U.S. Team Gymnastics. After years of working to restore trust and provide reassurance to athletes, her message is: “We're back.”
“We are the most diverse team in the world,” she says of the 900 athletes heading to Paris. “We are also an ecosystem of so many organisations, fragmented and complex, but stronger now. This is the most fair, safe and inclusive environment that exists in sport.”
The USOPC released its 2023 impact report this morning, highlighting a record $60 million raised through its foundation, $1.8 million in continuing education grants and $721,000 allocated through its technology fund. This may not seem like much compared to, say, the $1.2 billion in advertising sales that NBC has already recorded through April.
The USOPC is under pressure to implement the far-reaching reforms laid out in a 275-page report submitted to Congress earlier this year by an independent commission (many of which Hirshland supports.) The commission found that 26.5 percent of active athletes earn less than $15,000 a year and spend an average of $12,000 on training.
Why most of her funding comes from charitable donations or from corporate funding is a question for others to consider. “The hardest thing in the world to do is make the U.S. national team,” she says. “Think about the opportunity for companies to leverage these individuals to build relationships that go deeper than just the top 10 names that everyone knows. They can be valuable partners in motivating employees and customers.” Good point.
For more news, please see below.
Diane Brady
diane.brady@fortune.com
Follow on LinkedIn
top News
Righteous Anger
Virgin Atlantic CEO Shai Weiss says public frustration with airlines is “justified.” Weiss acknowledges the industry has “some problems to solve” in the wake of record travel demand post-COVID. Last year, the airline operated its first flight powered by fully sustainable aviation fuel, which Weiss predicts will be economical in 20 to 30 years. luck
VW invests in Rivian
Electric truck maker Rivian surged nearly 50% during trading hours after Volkswagen pledged to invest $5 billion in the company. In return, Volkswagen will get a partner to develop new battery-powered vehicles and access to Rivian's technology. The investment will provide a much-needed infusion of capital for Rivian as it expands production of electric pickup truck and SUV models. Bloomberg
China introduces Wegovy
Chinese health authorities have approved the introduction of Novo Nordisk Inc.'s weight-loss drug Wegovy into the Chinese market, opening up a lucrative growth area for the Danish drugmaker. But Novo Nordisk's patent for the active ingredient in Wegovy expires in 2026, creating an opportunity for generic versions by Chinese companies. Eli Lilly & Co.'s weight-loss drug Zepbound is still under review. luck
Around the water cooler
Meta fires AI biology research team; now this “Meta AI mafia” member's new startup has $142 million to chase protein synthesis dreams Sharon Goldman
Treasury Secretary Janet Yellen blamed President Trump's tax cuts for “a lot of the problems” with the soaring US budget deficit. Will Daniel
Real estate CEO says pandemic boom towns in Florida and Texas are overvalued and, in some cases, collapsing Alena Botros
Netflix wants managers to ask themselves whether they would rehire their current employees, and if the answer is no, fire them. Eleanor Pringle
Concerns are beginning to fade, with half of the world's workers now convinced that AI will actually increase salaries and job security. Oriana Rosa Royle
Top investor calls UK a 'banana economy' and runs the slogan 'build nothing close to anywhere' Ryan Hogg
This edition of CEO Daily was curated by Nicholas Gordon.
