Representatives of the IOC's 11 corporate sponsors will
meet as a group today in N.Y. "for the first time to discuss
the bribery allegations that have rocked the Games,"
according to Stefan Fatsis in a front-page report in today's
WALL STREET JOURNAL. They will meet in IBM's corporate
offices and then go to another site to meet with IOC
officials, including Marketing Dir Michael Payne. In the
talks, the sponsors "hope to gain an advantage in their
business dealings with the Olympics establishment." Fatsis
writes that for "years, sponsors have complained of shoddy
and arrogant treatment at the hands of Olympics organizers.
Now, they are preparing a list of demands" for deals that
are up after the 2000 Summer Games. They include "lower
fees, more marketing opportunities, better services from
Olympics business executives and a morals clause in
contracts." Chris Welton, a Managing Dir of Meridian
Management SA, the IOC's marketing arm in Atlanta, dismisses
the notion that the IOC doesn't treat its sponsors well: "If
that's the perception, whether it's reality or not ... it's
very important that we change that" (WALL STREET JOURNAL,
2/11). In Atlanta, Melissa Turner notes "tension surfacing
in the tight ranks of worldwide sponsors." Coca-Cola
continues to monitor the situation. Spokesperson Ben
Deutsch: "This is a very serious issue. We are very
concerned and continue to be concerned about anything that
can tarnish the Olympics, and we won't be fully satisfied
until this issue has been completely put to rest." Payne:
"Has the IOC been damaged? Yes, clearly it has" (ATLANTA
CONSTITUTION, 2/11). USA TODAY's Horovitz & Farrell write
today's meeting "could either open the door for defections
or help quell concerns of key Olympic sponsors." While no
sponsor has "talked as tough" as John Hancock, "the
grumbling seems to have gotten louder" (USA TODAY, 2/11).
THE ROLE OF D'ALESSANDRO: John Hancock Mutual Life
Insurance President David D'Alessandro has been an outspoken
critic against the IOC's investigation into the bribery
scandal and said Tuesday that he has halted talks with NBC
regarding an advertising package. But D'Alessandro tells
the N.Y. TIMES' Richard Sandomir that he is not trying to
force the IOC to rebate any of Hancock's fee: "This isn't
about forcing the price down. But if the rings devalue in
the consumers' minds, then they decline in value to the
sponsors and to television" (N.Y. TIMES, 2/11). USA TODAY's
Melanie Wells profiles D'Alessandro and calls John Hancock
the "only Olympics sponsor stepping into the spotlight."
But the IOC's Payne notes that John Hancock is "not one of
its largest ad spenders." The company reportedly spent
$12.2M on advertising during the Atlanta Games and $13.3M
during the Nagano Games. In contrast, IBM "bought about"
$40M during those Games (USA TODAY, 2/11). Susan
Rosenberg, a spokesperson for TOP sponsor UPS, said that the
company will keep the Olympic rings on packages, uniforms
and vehicles, but "we remain concerned, as we have since
December." Rosenberg: "We don't want to make premature
conclusions, but I think the IOC clearly got our message.
We believe change is in order" (Toronto GLOBE & MAIL, 2/11).
A FORCE? A N.Y. TIMES editorial states that "corporate
America can, and should, bring its collective clout to bear
in reforming the I.O.C. now" (N.Y. TIMES, 2/11).
OUTSIDE THE U.S.: In Canada, Chris Zelkovich reports
that some potential Olympic advertisers "have raised
concerns" with the CBC about the scandal, but CBC President
Perrin Beatty issued a statement "aimed at reassuring
advertisers that the CBC remains committed" to the Games.
CBC Dir of National/Sports Sales Adam Litzinger said the
network "has sold more" than 40% of the advertising for the
2000 Games and is "expecting to sell out." Litzinger:
"Sales have been exceptional" (TORONTO STAR, 2/11)....GM-
Holden, a "major" sponsor of the 2000 Games, is concerned
about the impact of the scandal on its sponsorship. GM-
Holden Public Affairs Manager John Morrison: "It's difficult
for a sponsor in the current environment to maximize its
associations with the Games for as long as these revelations
keep coming to the surface" (REUTERS, 2/11).
LEAVITT LEAVES IT: UT Gov. Mike Leavitt yesterday
"abandoned support for dramatically deregulating" Bell
telephone company US West after "allegations that US West
had asked for the effort in exchange for its continued
sponsorship" of the USOC and the 2002 Salt Lake Games. An
official for the Governor said, "The governor has reached a
conclusion that he cannot feel comfortable ... taking
deregulatory steps." US West continued to deny the two
issues were connected (Mike Mills, WASHINGTON POST, 2/11).
