>> After 41 years, McDonald's is pulling its sponsorship of the Olympic Games three years before its contract is set to end. The announcement coming Friday from the International Olympic Committee, which is now left without a major food sponsor for the 2020 games. Reuter's correspondent Leanna Baker.>> So it's major blow for the IOC to lose their premier food sponsor.
The value of an exclusive Olympic contract isn't what it was 30 years ago. There are so many advertisers now around the Olympics, and just being an exclusive sponsor and paying that $50 million a year which is what the IOC was asking for in renegotiating with McDonald's, it's just not worth it for them.
>> Shrinking TV audiences also diminishing the value of ad dollars spent with many viewers turning to social media for highlights. NBC's audience dropped more than 8% for 2016's Rio games from 2012's games in London. Doping and other scandals also tarnishing those famed Olympic rings.>> The image of the Olympics has definitely faced a blow.
In Rio last year, an IOC member from Ireland was arrested for a ticketing scandal. And a lot of these scandals have plagued the IOC. However, McDonald's has always been sort of a curious partner for the games. It's not the healthiest food brand as much as they're trying to work on it, so maybe it wasn't the best fit in the first place.
>> To that end, McDonald's will now be able to divert more cash toward improving its food quality, restaurant service, and online ordering as intense competition in the US has gnawed away at sales. Shareholders applauding the move, the stock moving higher Friday. As for the IOC, it's not too bruised yet.
McDonalds' rivals could jump on a sponsorship deal that's been locked up since 1976. And tech company Intel, looking to push into sports technology, plans to sign on as a new sponsor next week.