Mazda Stands By Phelps
Automobile manufacturer Mazda will continue to sponsor Michael Phelps after the record-breaking Olympic swimmer apologized to Chinese fans on a video for the photograph of him smoking from a marijuana bong.
Phelps signed a contract with Mazda to represent its cars in China. It is the largest deal ever for a celebrity from the West.
"“We were shocked on learning the news and we regret such behavior," the company's China joint venture FAW Mazda Motor Sales Co. said in a statement. "But Phelps has since apologized and is determined to learn from his mistake, especially since he apologized to the Chinese public through a videocast."
In the video, Phelps said, "I recently engaged in behavior that was regrettable and not what people have come to expect from me. The past few days have been tough for me, but I’ve received support and encouragement online from so many Chinese friends."
Isinbayeva Signs Deal with Chinese Sportswear Company
Russian Olympic women’s pole vault champion Yelena Isinbayeva has signed a $7.5 million deal with Li Ning, the largest sportswear company in China.
The deal with Isinbayeva, the gold medalist at the 2008 Summer Olympics in Beijing, runs through 2014.
She previously had a sportswear deal with Adidas.
The company was founded in 1990 by Olympic gymnast Li Ning, who won six medals -- including three golds -- at the 1984 Games in Los Angeles.
Li Ning has been seeking opportunities to expand overseas and has sponsorships with Argentina’s and Spain’s national basketball teams as well as the Swedish Olympic Committee. The company has a deal with NBA star Shaquille O’Neal, a six-year $6.25 million agreement signed in 2006.
Atos Origin on Track for 2010 Winter Games
Information technology company Atos Origin says it has nearly completed the IT system for the 2010 Winter Olympics in Vancouver.
The company says the system is currently in the testing phase.
"We will deliver the world's highest profile IT project on time and on budget," Atos Origin’s Olympic system chief integrator Magnus Alvarsson said. "Like the athletes, this complex network of systems must work perfectly from the first moment, in front of three billion people. There is no second chance."
Atos Origin has a contract with the IOC for information services and will handle the IT system for the 2012 Summer Olympics in London.
McDonald’s, Consortium Reach Agreement for 2010 Games
Canada’s Olympic Broadcast Media Consortium has reached a multi-platform sponsorship agreement with McDonald’s Restaurants of Canada Limited for the 2010 Winter Olympics in Vancouver.
Under the deal, the consortium will provide an integrated media activation program for McDonald’s Canada that will provide exclusivity for serving hamburgers and breakfast food during the Games.
The sponsorship deal is the largest one ever put together in Canada for a single Olympic Games.
"The breadth and depth of our assets give us the unique ability to create a comprehensive and integrated business solution to meet McDonald’s core objectives," consortium president Keith Pelley said.
"McDonald’s long-standing commitment to the Olympic Games and Olympic athletes is to be admired and we are thrilled to establish a relationship with this best-in-class brand."
One of the nine Olympic TOP sponsors, McDonald’s has been involved with the Olympic Games since the 1968 Winter Olympics in Grenoble, France and will continue its sponsorship of the Games through 2012.
Visa to Reduce Marketing Spend; Selective Sponsorship
Visa is still committed to supporting the Olympics and the FIFA World Cup, but is looking to save money is by reducing spending for marketing and being more selective about which events to sponsor.
That according to chief financial officer Byron Pollitt, who also noted the credit card company has withdrawn its sponsorship from the Rugby World Cup.
Visa also says it expects to reach its $300 million savings target a year earlier than originally expected as a result of reduced consumer spending around the world.
Pollitt says the savings will be achieved by restructuring the company’s six units into one.
As a result, the company could realize an earnings-per-share growth of 20 percent, according to Pollitt.
...Briefs
...The AVP pro beach volleyball tour has reached a partnership deal with athletic apparel company Russell Athletic. Under the three-year agreement, Russell will be the official apparel sponsor of the AVP and will have a branded presence at the on-site merchandise tent at each tour shop in conjunction with Event Merchandising, Inc.
...Visa Europe, an Olympic tier one partner for the 2012 Summer Olympics in London, has asked media agencies Saatachi & Saatachi and Mediaedge:cia to put together teams from other group organizations to bid for the opportunity to implement an integrated sponsorship strategy for the Games.
...MasterCard will become the second worldwide partner for the 2011 Rugby World Cup in New Zealand, according to Rugby World Cup Limited. Under the deal, the credit card giant will be the preferred card and the official payment system for the event.
...British bank Lloyds TSB is introducing a new mortgage offer that will be related to its sponsorship of the 2012 Summer Olympics and Paralympics in London. The "2012 three-year mortgage" includes a $144 discount on the mortgage product fee, which will instead be donated to the British Olympic Association and the British Paralympic Association.
...Hilton Hotels & Resorts reports that 12 of its Hilton brand hotels in the northeastern U.S. and Canada are in the final stage of renovations valued at nearly $88 million.
Written by Greg Oshust.