Olympics story by Boris Webb, Wed, 25 Jan 2006 18:44:00 GMT


LONDON - Sir Keith Mills, the deputy chairman of the London 2012 organizing committee has said that the search for four top sponsors who could commit £50 million each for the Olympic effort had begun in the right earnest.

Sir Mills said that the operating budget for the Games was pegged at £2 billion, out of which about 35 percent would be raised from commercial sponsors with the rest being provided by the International Olympics Committee and television revenues. "There will be a minimum of £50 million for each sponsor. LOCOG aim to announce two of them by the end of the year," he said.

The London Organizing Committee of the Olympic Games (LOCOG), is looking for sponsors in four main areas, namely, banking, automotives, utilities and telecoms. The committee has split the sponsorship into three tiers with the first tier having 10 sponsors, while the second tier will have 20 to 30 sponsors. The third tier will be filled by 30 to 50 sponsors.

Olympic minister Tessa Jowell said that it was important that they did not cross the budget limit, "Many of you know what an incredibly complex project hosting the Games will be. Difficulties will occur, but do not doubt our commitment to getting the job done - and in a way which minimizes any cost overrun," she stressed.

"The Government will be spending almost £3 billion on physical infrastructure for the Games and we want that money to work to the maximum benefit of our economy." Any sponsorship deals made by the London committee should not be against the interests of IOC's main sponsors, which include Samsung, Kodak, Visa, Coca-Cola, McDonald's and Panasonic.

"Sponsors have a pivotal role to play not only in funding the actual games, but in helping Locog [London Organizing Committee for the Olympic Games] achieve a predicted operating surplus of up to £100m, 80% of which will be ploughed back into sport in the UK," Sir Mills stressed.

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