British Olympic Association closes in on new sponsorship deals
Tuesday, 26 February 2013
February 26 - The British Olympic Association (BOA) is closing in on three new sponsorship deals to help tide it over difficult financial times in the wake of London 2012.
It emerged in October that the body had completed contracts with two sponsors, including sportswear brand adidas, for the period to the Summer Olympics at Rio de Janeiro in 2016.
These contracts were said to have "a gross value of £13 million ($20 million/€15 million)".
However, pending further deals, "headroom" against the BOA's overdraft facility was said to be "limited" - so much so that the body agreed a temporary £1 million ($1.51 million/€1.16 million) extension of its £4 million ($6 million/€5 million) overdraft facility, until April 2013.
The BOA also hopes to receive up to $8 million (£5 million/€6 million) from London 2012.
However, this depends on London 2012 declaring a surplus – something that is unlikely to be known before June.
While it is not entirely clear who the three new deals might be with, Brand Republic/Marketing is reporting that Barclays, the United Kingdom-based bank, is set to take over as the BOA's primary financial services partner in what is estimated as a £4 million ($6 million/€5 million) deal.
Barclays - which already has a number of prominent sporting sponsorships, notably the Premier League, and is attempting to reshape its business and image under Antony Jenkins, a new chief executive - had no comment.
The BOA said it was in discussions with "a number of companies across a number of different categories regarding possible sponsorship opportunities."
"Those discussions are going well and there continues to be a great deal of interest in supporting Team GB and aligning with the Team GB brand, particularly off the success of London 2012," the BOA added.
It said that "as a matter of policy", it did not disclose the names of companies with whom it was having discussions.
Barclays rival Lloyds sponsored London 2012 and has handled the BOA's commercial banking in recent times.
February 2013: Exclusive - London 2012 surplus set to put BOA back into black