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Olympic Sponsor Nixes $6.3M Deal

January 11, 1999

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for the Sydney Organizing Committee for the Olympic Games (SOCOG) said Monday it was disappointing that the company had withdrawn a memorandum of understanding that set up the sponsorship deal.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.

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