Tuesday, August 19, 2008
A major brewer has renewed through the 2012 London Games.
BEIJING (AP) — As they cheer on their athletes in Beijing, American Olympic officials are trying to secure their own gold: corporate sponsors.
The U.S. Olympic Committee is losing General Motors Corp. as one of its five top-tier sponsors but scored a victory last month when Anheuser-Busch renewed through the 2012 London Games. The rest — AT T, Bank of America and The Home Depot — are still negotiating possible renewals.
With sponsorships costing more than $10 million, USOC officials are working harder than ever to close deals at a time when companies are cautious about spending and have more options, from college sports to stock car racing.
“I think they are more challenged today because of all the choice and the short window when they get the spotlight,” said Tony Ponturo, Anheuser-Busch’s vice president for global media and sports marketing.
Anheuser-Busch Inc., which also sponsors football, basketball, baseball and soccer’s World Cup, weighed the cost and decided the Olympics was a good deal, Ponturo said. He said the games have a special emotional appeal and, unlike many sports events, connect with women, a sought-after market.
“You’d almost say the Olympics is an event beyond sports,” he said.
Anheuser-Busch and other sponsors declined to disclose financial details. But Ponturo said the St. Louis-based brewer’s deal in July cost in the “double-digit millions” and was about the same as previous sponsorships.
Rick Burton, chief marketing officer for the USOC, said he “wouldn’t disagree” that the group is working harder to close deals.
“The companies have to make sure that being associated with the Olympics is going to help them ring their cash registers,” he said.
But Burton said the “monster ratings” for TV coverage of Beijing should help to confirm the value of sponsorships. “If Michael Phelps swims for an eighth gold medal, the TV ratings are going to be through the roof,” he said.
Bank of America Corp. is likely to renew but is reviewing whether the Olympics fit its marketing, spokesman Joe Goode said. The Charlotte, N.C.-based bank also sponsors NASCAR and American professional football and baseball.
Goode said Bank of America has found that customers who know about its Olympic support are twice as likely to consider using the bank and to recommend it to friends.