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,... continue reading

Children's Hospital in Hot Water Over Corporate Sponsorships†

Critics Dismayed by Association With Racy Retailer Abercrombie & Fitch

Advertising Age, March 13, 2008 — What's in a name? If you're a Columbus, Ohio-area children's hospital, plenty of donations

The Nationwide Children's Hospital, so called in recognition of the insurance company's $50 million donation, is drawing fire from advocacy groups for its embrace of corporate sponsors. The facility is preparing to break ground on the Abercrombie & Fitch Emergency Department and Trauma Center. Another retailer, Limited Too, will be recognized for its $5 million donation with the Limited Too & Justice Main Lobby.

But it is the affiliation with Abercrombie, known for its not-exactly-child-friendly advertising, that is drawing the most criticism. Abercrombie donated $10 million to the hospital in 2006 for the construction of the center.

Cycling’s Drug Problem Leads T-Mobile to End Sponsorship

New York Times, November 28, 2007 — T-Mobile, the professional cycling team that began this year with the sport’s largest budget and an ambitious plan to reform the sport’s drug problem, lost its sponsor yesterday because of continuing doping controversies...In announcing the decision to end its sponsorship contract two years early, Deutsche Telekom made it clear that cycling teams had become a marketing nightmare.