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MAR 17

Sponsors' Olympic Balancing Act†

Tibet Unrest Could Devalue Investments, but Firms Fear Riling China's Government

Wall Street Journal, March 17, 2008 — The violent clashes in Tibet and western China are causing Olympic sponsors to evaluate how they can protect their investment in the coming Games here, without appearing to undermine China's government.

Lenovo Group Ltd., Coca-Cola Co., McDonald's Corp., Volkswagen AG and others have paid record sums — as much as $120 million, according to some estimates — to sponsor Beijing's Olympics. To them, the Games are a unique opportunity to tap China's vast and burgeoning markets, and build vital relationships with the country's decision makers.

But there is growing concern among corporate sponsors that the rising tide of protests over Tibet and China's support of the Sudanese government will detract from the Games' commercial success, say some executives, who spoke on condition of anonymity for fear their comments could sour relations with the Chinese government.

Category: Marketing Strategy
Tags: Olympics, sponsorships

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