UPS Withdraws As Olympic Sponsor

Thursday, December 21st 2000, 12:00 am

By: News On 6

ATLANTA (AP) â€” United Parcel Service is ending its six-year sponsorship with the International Olympic Committee, becoming the second major sponsor to withdraw before the 2002 and 2004 Olympics.

The decision Thursday had Olympic marketing officials scrambling to find a replacement.

``We believe this is an extremely marketable category,'' U.S. Olympic marketing chief Mark Lewis said in Salt Lake City, site of the 2002 Winter Games.

UPS decided against renewing its global sponsorship deal that expires Dec. 31. Two years ago, IBM said it would end its association after the Sydney Games.

The package-delivery company said it has achieved its marketing goals from its association with the games, which allowed it to increase its presence outside the United States.

The Atlanta-based company was one of 11 global sponsors that donate at least $50 million in cash, services or products over four years. The IOC reportedly was seeking more than $50 million from new sponsors in its marketing plan dubbed TOP, The Olympic Program. The Salt Lake Games collects 16 percent of TOP revenues.

The top-tier sponsors pay up to $60 million for the right to use the Olympics' five-ring logo on their advertising.

``This whole thing for us is built on a business strategy and a business objective â€” they've changed over time,'' UPS spokeswoman Susan Rosenberg said.

She said that UPS' high-profile disagreement with the organizing committee for the 2000 Sydney Games influenced the decision.

UPS claimed that Sydney organizers allowed a rival Australian delivery company, TNT, to promote its delivery of event tickets in ways that violated UPS' marketing agreement.

``It was a contributing factor, but frankly it wasn't a fundamental part of the decision,'' Rosenberg said.

She said UPS' withdrawal was unrelated to the Olympic bribery scandal, which led the IOC to expel six members for taking money, scholarships and other favors from Salt Lake City.

After the scandal broke, some of the Olympics' biggest corporate sponsors demanded that the IOC institute reforms, but none pulled out. IBM said it pulled out because Olympic organizers balked at sharing its costs for providing technology.

Other companies involved in the TOP marketing plan include Coca-Cola, Eastman Kodak, VISA, Xerox, Sports Illustrated, Panasonic, McDonald's, John Hancock and Samsung.

In a joint statement with the Swiss-based IOC, UPS officials said the company will continue to help the committee with delivery and logistics services.

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On the Net:

UPS: http://www.ups.com

Salt Lake Organizing Committee: http://www.saltlake2002.com

U.S. Olympic Committee: http://www.olympic-usa.org.

International Olympic Committee: http://www.olympic.org/