Report Slams 2012 Sponsorship Goals

It has emerged that the sponsorship targets laid out in the London 2012 Olympic
proposals were labelled as ‘unrealistic’ by a PricewaterhouseCoopers report
prior to the bid even being made.

The government-commissioned report, produced in 2004, warned that the
original target for domestic sponsorship of £450m was higher than any other host
city had ever achieved as well as all the other candidate cities bidding for the
2012 Games.

The report, which was obtained by the media under the Freedom of Information
Act, also suggested that the bid may not have allowed enough funds for the
employment of Olympic staff and that increasing taxes to help pay for the event
risked alienating the public.

Sources now suggest that the target for sponsorship has increased to £750m to
help pay for the rising budgetary demands and speculation has emerged regarding
leaked memos that hint that organising committee LOCOG is struggling to meet its
financial goals in terms of attracting sponsors.

LOCOG firmly denied any difficulties, a spokesman stating: ‘We have had a
very strong level of interest in sponsoring the Games from British business’.

LOCOG is scheduled to unveil its first top-tier sponsorship deal next month
with LloydsTSB widely expected to be the initial brand to sign up in the banking
category.