IOC officially announces Dow sponsorship deal
{{#rendered}} {{/rendered}}LAUSANNE, Switzerland (AP) — Dow Chemical signed on as a global Olympic sponsor Friday with a 10-year deal that gives a financial boost to the international and U.S. Olympic bodies.
The International Olympic Committee announced the American giant became a top-tier sponsor through 2020 and will be the official "chemistry company" for the games. Financial terms weren't announced, but each four-year IOC sponsorship deal usually goes for up to $100 million.
The deal covers the 2012 London Olympics; 2014 Winter Games in Sochi, Russia; 2016 Summer Games in Rio de Janeiro, as well as the 2018 Winter Games and 2020 Summer Olympics.
{{#rendered}} {{/rendered}}The impending deal with Dow was first reported by The Associated Press last month.
"As a global leader in the chemical industry and an innovator in sustainability, Dow will not only provide critical financial support to the Olympic Movement, but also bring industry-leading expertise and innovation to the Games themselves," IOC president Jacques Rogge said.
Dow becomes the 10th global sponsor for the London Games. The others are Coca-Cola, Acer, Atos Origin, GE, McDonald's, Omega, Panasonic, Samsung and Visa.
{{#rendered}} {{/rendered}}Atos Origin, Panasonic and Samsung are signed through 2016. Coca-Cola, Omega and Visa are signed through 2020.
"The long-term nature of this partnership is excellent news for the Olympic Movement as a whole," IOC marketing commission chairman Gerhard Heiberg said.
The IOC also has been negotiating with Procter & Gamble and BMW, as it tries to match or exceed the 11 sponsors it had in the last four-year cycle.
{{#rendered}} {{/rendered}}The IOC already had secured close to $900 million in sponsorship revenue for the current four-year cycle, and was hoping to break the $1 billion mark.
The Dow deal is also expected to help solve some of the problems the USOC and IOC are having on their long-standing dispute over revenue splits. The sides are trying to reach an agreement on how much the USOC should pay toward the administrative costs of putting on the Olympics.
Adding a new sponsor puts more money into the pot and makes it easier for the USOC to compromise on the games-cost issue.
{{#rendered}} {{/rendered}}The administrative-costs issue is part of a bigger agreement between the parties to begin negotiations in 2013 on a new revenue-sharing formula to go into effect in 2020.
The USOC gets a 20-percent share of global sponsorship revenue and a 12.75-percent share of U.S. broadcast rights deals. Many international officials think it's too big a portion.