IOC officials met with representatives of the 11 TOP
Olympic sponsors and NBC to "assure" them of their "zeal to
rapidly contain the scandal over improper payments to its
members and to reform how it does business," according to
Richard Sandomir of the N.Y. TIMES. IOC Marketing Dir
Michael Payne: "They had concerns about the reform process,
about how far the I.O.C. intends to go." One exec who
attended the meeting called the atmosphere "polite but at
times chilly." The exec said that the sponsors, who pay an
average of $40M for their support of the Games, did not ask
for the resignation of IOC President Juan Antonio Samaranch,
but wondered, "Where is the accountability?" (N.Y. TIMES,
2/12). In Boston, Zuckoff & Krupa report that sponsor reps
were "refusing to sign on to a statement expressing full
support for the IOC's reform efforts so far," with some
saying the "statement was premature and others saying they
had not been authorized by their companies to take the
action." One participant said, "No one said they were
pulling back any support. But it was striking that a
meeting that probably would have been used to update us on
the various activities involving our sponsorships [before
the bid scandal] ... was used to express some frustration
and some criticism" (BOSTON GLOBE, 2/12). In N.Y., Stefan
Fatsis reports that some "sponsors said they were under
pressure from management and shareholders and were delaying
marketing efforts" for the 2000 Games. The sponsors did not
"plan any further group action" (WALL STREET JOURNAL, 2/12).
Afterward, IOC VP Dick Pound said, "Sponsors are supportive
of [the] fact we're trying to clean up the problem.
Nobody's withdrawn their sponsorship." Asked about John
Hancock Mutual Life Insurance President David D'Alessandro
halting talks with NBC about an ad buy, Pound said, "I think
he hopes he's seen as putting pressure on us to do the right
thing. ... I talked to Mr. D'Alessandro and he's not
thinking of abandoning the Olympics" (Toronto GLOBE & MAIL,
2/12). Pound: "John Hancock has postponed for a time its
television discussions, which is an add-on to its
sponsorship. It has not withdrawn or threatened to withdraw
its sponsorship at all" (TORONTO STAR, 2/12). Yesterday,
Xerox Olympic Marketing Manager Terry Dillman said, "I want
assurances that [the IOC has] a plan to go forward to get
this thing behind them and clean it up." Visa Int'l Exec
VP Michael Beindorff: "Clearly, this thing is not good" (USA
TODAY, 2/12). Pound said of the Games, "It is still a
fabulous investment" (ATLANTA CONSTITUTION, 2/12).
GM GIVES ITS SUPPORT TO THE RINGS: GM, the "biggest
sponsor" of the Olympic movement in the U.S., said it will
"stand by its current marketing plans." GM plans to spend
$1B on the Olympics during the next decade. GM VP/North
America Advertising & Marketing Phil Guarascio: "We've made
no changes in our plans but continue to monitor the
situation." Guarascio said the company's GM EventWorks unit
will continue to survey consumers to make sure "public
opinion doesn't 'double back on the athletes or the Games
themselves'" (WALL STREET JOURNAL, 2/12).
