More Trouble Brewing for Vancouver 2010?
Right on the heels of the news that bankrupt Vancouver Olympic Committee sponsor, General Motors, plans to honor its sponsorship agreement, more trouble could be on the horizon for yet another VANOC 2010 sponsor.
You'll recall that Nortel, the official network equipment supplier of the games, has already listed VANOC as a creditor in its bankruptcy.
The official airline, Air Canada, may be next. Today S&P downgraded the company to "highly speculative, saying the airline's near-term efforts to boost liquidity remain uncertain."
Presuming that these companies do honor their contractual agreements, it's unlikely they'll be interested in activating as Olympic sponsors typically do. In the wake of financial difficulties and layoffs, the last thing the PR folks want to do is spend their time answering questions about wasteful schwag and extravagant hospitality.
In fact, Air Canada has already said they may be trimming their budget for the games.
As for GM: "We have no plans for hospitality of any kind in association with the Vancouver Games," said General Motors Spokesperson Stew Low. "Nor will we have a major exhibit at the Games."
Even more concerning, only 8 months from the Games the Global Mail reports that the IOC has yet to fill out its roster of 11 global partners, which it promised to VANOC. The IOC has thus far signed up nine partners, which means there is a $35 million shortfall in the $196 million projected budget for international sponsors.
One VANOC sponsor not having difficulties? Their newest one. Today, VANOC announced that Offsetters will be the Official Carbon Offsetter of Vancouver 2010. That's right VANOC now has an official carbon offsetter. Jersey sponsorships, carbon offsetter categories, what's next?