US Olympic Committee Loses Major Sponsor as Bank of America Abandons Partnership

Strategic Insights -

The US Olympic Committee has suffered another significant blow as Bank of America, a long-time corporate partner, has decided not to renew its sponsorship. This move follows the departure of General Motors and The Home Depot, marking the loss of three major sponsorship categories just eight months before the Vancouver Games. Bank of America's decision to end its four-year agreement worth between $12 million and $15 million comes as the bank is struggling to recover from the economic downturn, having to repay the $45 billion it received through the federal government's asset relief program. Despite this, the USOC remains optimistic, boasting 19 partners, including new deals with Acer, Adecco, and Deloitte.

Key Takeaways:

  • The US Olympic Committee has lost a major corporate partner as Bank of America ends its four-year sponsorship agreement worth between $12 million and $15 million.
  • This move follows the departures of General Motors and The Home Depot, marking the loss of three major sponsorship categories just eight months before the Vancouver Games.
  • The bank is struggling to recover from the economic downturn and must repay the $45 billion it received through the federal government's asset relief program.
  • The USOC has 19 partners, including new deals with Acer, Adecco, and Deloitte, as well as renewals with Allstate, Anheuser-Busch, Hilton, Jet Set Sports, Nike, Tyson Foods, United Airlines, and 24 Hour Fitness.
  • The USOC has reached a preliminary agreement with Procter & Gamble and is negotiating a renewal with AT&T.
  • Bank of America's decision was not related to the bank's financial arrangement with the US government, but rather its inability to generate sufficient results from the sponsorship.
  • Sponsorships fuel more than a third of the USOC's annual budget, reduced by $7.1 million to $135.5 million in March cost-cutting measures.
  • The USOC boasts net assets of $167.1 million and is optimistic about its value proposition in the marketplace.

Statistics:

  • The USOC has 19 partners, including new deals with Acer, Adecco, and Deloitte.
  • The bank received $45 billion through the federal government's asset relief program.
  • The USOC's net assets are $167.1 million.
  • Sponsorships account for more than a third of the USOC's annual budget, reduced by $7.1 million to $135.5 million.
  • Bank of America's stock closed at $11.21 a share on Wednesday, down $22.10 from a year ago.
  • The bank's average revenue from sponsorships is $10, with an average earnings of $3.

Sources:

  • The Gazette, Colorado Springs, Colo. (c) 2009
  • SportsBusiness Journal
  • McClatchy-Tribune Information Services
  • Bank of America spokesman Joe Goode
  • USOC chief marketing officer Lisa Baird