LOCOG, Nortel Agree To End Sponsorship Deal For '12 Games
Nortel and LOCOG have agreed to end their sponsorship deal for the '12 London Games as the bankrupt telecommunications company "staggers through court protection from creditors," according to David Ebner of the GLOBE & MAIL. Nortel last year signed a $65M (all figures U.S.) Tier One sponsorship of the London Games. Cisco Systems will replace Nortel, though it will be a Tier Two sponsorship, meaning LOCOG will lose about $20M that they "had previously expected." Nortel is "trying to sell its wireless business to a joint venture of Nokia and Siemens," and LOCOG officials "feared it would not be able to fulfill what it had promised to deliver." Meanwhile, VANOC officials said that Nortel's woes will "not affect" the '10 Vancouver Games, where the company has a Tier Three sponsorship. Nortel signed its deal with VANOC, valued at $3-15M, in April '07 and the company said that it has delivered 85% of its "obligation to Vancouver 2010." Nortel's deal for the '10 Games "consists mostly of network equipment to be installed at 15 venues in Vancouver and Whistler, as well as Vancouver 2010" HQs and other locations (GLOBE & MAIL, 7/11). LOCOG CEO Paul Deighton Friday said, "This is in no way a reflection of their capabilities -- this is all about meeting our fixed deadlines." REUTERS' Martyn Herman noted LOCOG has already raised about $813M in domestic sponsorship, just shy of its target of $1.05B (REUTERS, 7/10).
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