London 2012 Chasing Supermarket Brands

LOCOG, the organising committee for the London 2012 Olympics, is reportedly
targeting supermarket brands over a top-tier domestic sponsorship deal
potentially taking the number of sector category slots at the highest level of
affiliation to 10.

LOCOG has already announced deals with Lloyds TSB, EDF Energy and adidas and
has confirmed that it is still looking for top-tier sponsors to fill the slots
for clothing and homeware, airline, oil and gas, utility services, automotive,
and telecoms.

The potential addition of supermarket brands further widens LOCOG’s net
although it is thought that any sponsoring brand from this sector may demand
that the clothing and homeware sector be folded into its exclusive category.

Reports suggest that LOCOG is already in negotiations with Tesco over a
proposed deal with the organising committee looking to bolster the package by
allowing the provision of official London 2012 merchandise through a single
online branded portal in the run-up to the Games.

LOCOG has refused to comment on the speculation stating only that is
continuing to talk to brands with regards to involvement with London 2012.

Industry speculation estimates that LOCOG is looking for between £80m-£100m
for each of the top-tier domestic sponsorship slots although many of the deals
are likely to be a combination of cash and the provision of value-in-kind
services.

It is also thought that the deals signed with Lloyds TSB, EDF Energy and
adidas have come in under the asking price which could explain the expansion of
the number of top-tier sponsorship opportunities as a method of making up the
budget shortfall.