London 2012 Unlikely To Sign More Tier One Sponsors

The economic situation is beginning to bite with London 2012 chief executive Paul Deighton confirming that he does not ‘expect’ to sign anymore Tier One sponsors to the Games despite two category packages remaining unsold.

Deighton, chief executive of London 2012 organising committee LOCOG, stated the organisation was looking to fill a number of categories at Tier One and, while 7 have been filled, deals in the automotive and clothing and homeware sectors have yet to be completed.

So far LloydsTSB, BT, British Airways, adidas, EDF Energy, BP, and Nortel Networks have all signed up as Tier One sponsors.

With each deal expected to recoup a minimum of £40m and with two categories outstanding, LOCOG could fall short of its target of between £600m and £700m – a revenue level of which it is thus far two-thirds of the way towards achieving.

LOCOG is now likely to focus on Tier Two partnerships to help it achieve its revenue goal with Deloitte and latest sponsor Cadbury signed up at this secondary level of association.

With the economy in its current state of disrepair, Deighton defended LOCOG’s approach saying: ‘The category stems from the value we achieve. We are of course alert to the way the economy is slowing down.

‘Lloyds TSB has already made a very, very significant contribution and we’re working through with them what we can do with their sponsorship.

‘If ever a strategy of going early was borne out it’s now. No-one would want to be in a market to try to persuade a bank to sign up today. Other categories have been much stronger. The deal before Cadbury was Nortel as a Tier One sponsor and that started off as a Tier Two deal but they and all their competitors got so excited that it ended up being Tier One.’

Deighton also suggested that LOCOG was unlikely to sign up any more partners in the immediate months ahead due to the perilous economy.

He concluded: ‘If we end up doing more in 2010 and 2011 than in 2009 then we’re in a strong enough financial position to play it that way – there is no reason to diminish the £700m target but the timing may change.’