No Gold Medals Yet
In a mea culpa to skittish sponsors, the International Olympic Committee (IOC) will include a morals clause in future contracts so sponsors can get out fast if bad press keeps chipping away at the Games’ image.
The recent decision addresses the demands of top sponsors pondering new four-year contracts as the IOC and Salt Lake Olympic Organizing Committee (SLOC) undergo scrutiny for alleged bribery. Neither the IOC or U.S. Olympic Committee (USOC) has signed any new top-level sponsors since the scandal broke late last year.
In January, Johnson & Johnson pulled the plug on a $30 million sponsorship when bribery allegations were first reported. The contentious environment contributed to J&J’s decision.
Still $300 million short in funding a $1.4 billion budget, the SLOC hired giant sports marketer Cleveland-based International Management Group in April to kick-start new sponsorships. IMG will work on commission alongside the Olympic Properties of the U.S. (OPUS), which sells the Games for the USOC and the SLOC.
Later in April, OPUS president, ceo, and marketing chief John Krimsky tendered a surprise resignation. Krimsky, who also was USOC deputy secretary general, has raised $2 billion for Olympic efforts. He moved to Brierly & Partners, Dallas, to manage United Airlines’ Silver Wings loyalty program. USOC executive director Dick Schultz took on the duties of OPUS president-ceo, and USA Hockey exec Dave Ogrean was tapped as deputy exec director-marketing.
The Games are in limbo now, with corporations holding back on new commitments while a process for reform evolves. The IOC hasn’t helped by sending mixed signals: Committee member Jacque Rogge asserted that the committee must accept “collective guilt [for] betraying the athletes,” while IOC president Juan Samaranch blamed politicians for fanning a media scandal he claimed was out of proportion with any misdeeds.
Sponsors have been tepidly enthusiastic about IOC reforms announced so far, and await results of a panel set for this month to examine the IOC’s business methods.
The SLOC is optimistic it will meet funding goals. It’s still ahead of where Atlanta was before the 1996 Summer Games.
