General Motors formally announced a multi-year, multi-
million dollar Olympic partnership with NBC and the USOC
designating GM as the Official Domestic Car and Truck of the
U.S. Olympic Team through the 2008 Olympic Games. The deal
allows GM, and all its divisions and subsidiaries, the use
of the Olympic rings and logos in all advertising and
marketing efforts. GM will also gain category exclusivity
for the 2002 Winter Games in Salt Lake City. GM's deal with
NBC will include the network's coverage of the Olympic Games
and related Olympic programming. The deal represents the
first eight-year partnership handled by the Olympic
Properties of the U.S., headed by John Krimsky (OPUS).
DETAILS: In N.Y., Richard Sandomir writes that GM will
"commit an estimated" $900M through the 2008 Games in a
"wager that the next six Winter and Summer Games will
continue to galvanize the interest of fans, viewers and
potential car buyers as they have in recent years." Sources
close to the deal say that GM will purchase $500M in media
time on five NBC telecasts starting with the 2000 Summer
Games. GM will also "invest" $400M "in cash and vehicles to
support the training of the Olympic Committee's 44 national
teams." Sandomir: "The deals constitute the largest long-
term sports-marketing program ever." Philip Guarascio, GM's
VP/GM Marketing & Advertising for GM North America: "This
isn't about dollars, it's about value. If you look at how
people will spend their time in 2002, 2004, and 2006, and
what activities will galvanize their interest, we think the
Olympics will be one of them" (N.Y. TIMES, 7/31).
REAX: USA TODAY's Wells & Ruibal note the deal "calls
into question the cost and value of Olympic sponsorships a
year after the Atlanta Games, which was criticized as
grossly over-commercialized." The deal "gets mixed reaction
from marketers and advertising experts who say it's
difficult for a company to measure what impact -- if any --
Olympic sponsorship has on sales" (USA TODAY, 7/31).
NOTES: NBC Sports President Dick Ebersol: "The hope is
we will do more [deals] in the next 60 days" (N.Y. TIMES,
7/31)....OPUS' Krimsky "predicted another automaker --
Japanese or European -- will sign up with OPUS, but at a
smaller figure than GM's. BMW backed off an eight year
sponsorship arrangement" (SALT LAKE TRIBUNE, 7/31)....The
deal gives NBC "more than 12% of its revenue target for the
five Olympics." NBC paid $3.55B for the rights to the
Olympic Games from 2000-2008 (HOLLYWOOD REPORTER, 7/31).
