Olympic Sponsor Nixes $6.3M Deal
SYDNEY, Australia (AP) _ American oil company Texaco-Caltex has pulled out of a $6.3 million Olympic sponsorship deal, leaving Games organizers with a possible revenue shortfall.
A spokesman for the Sydney Organizing Committee for the Olympic Games (SOCOG) said Monday it was disappointing that the company had withdrawn a memorandum of understanding that set up the sponsorship deal.
The deal would have been a boost to SOCOG’s 1999 sponsorship drive, which must raise $126 million by the end of the year to achieve its budget target.
Texaco-Caltex pulled out after 12 months of negotiations, saying it had already signed up as a major sponsor of the U.S. Olympic team and as a major partner for the 2002 Salt Lake City Winter Games.
SOCOG spokesman Milton Cockburn said officials were disappointed the potential sponsorship fell through because of changed financial circumstances within Texaco-Caltex.
``We are disappointed, however it’s not a crucial development in terms of SOCOG’s task in raising additional sponsorship revenue,″ Cockburn said.
A spokesman for Olympics Minister Michael Knight, who is also SOCOG president, said Knight was confident SOCOG would raise additional sponsorship by the end of this year.