Paul Deighton, Chief Executive of the London 2012 Olympic Organizing Committee recently stated that he did not expect to sign on anymore top level sponsors prior to the start of the games. However, an announcement was made yesterday that BMW has signed on in a deal valued at $56 million dollars, placing them amongst the top tier of Olympic sponsors. BMW is slated to provide over 4,000 cars, along with a fleet of motorcycles and bicycles in exchange for rights to the Olympic logo and other benefits.
The deal with BMW has pushed the total value of all secured sponsorships just under $1 billion, helping the London Olympic Committee inch closer to their goal of $1.1 billion. The fact that the London 2012 has done such an excellent job of recruiting sponsors and raising funds in this poor global economy speaks tremendously for the power of the Olympics, as well as the work of the London 2012 Committee.
So while the Olympics are feeling the benefits of corporate spending, other major properties like the PGA and ATP are feeling the pinch. In some cases these organizations are even shutting down events due to the loss of sponsors. I invite everyone to share their opinion on why the Olympics hold so much weight when budgets are allocated. How come they are coming out on top, while others are scratching to remain afloat?