General Motors Bankruptcy Could Leave Olympics Stranded
Vanoc assured that GM will fulfill sponsorship commitment
By JEFF LEE, Vancouver Sun, May 28, 2009
If General Motors files for bankruptcy protection on Monday, as is widely expected, it will have yet to deliver more than 4,300 vehicles for the 2010 Winter Games.
But the Vancouver Organizing Committee said Thursday it is not concerned whether GM, a major sponsor of the Olympics, will be able to fulfill its financial commitment to the Games.
Last week, Dave Cobb, Vanoc’s executive vice-president of marketing, told reporters the committee has received assurances from GM and other financially-troubled sponsors that they will all deliver on their sponsorship promises.
But with a deadline for restructuring now fast approaching and GM signaling it will now likely file for Chapter 11 bankruptcy protection in the United States, the stability of the Olympic sponsorship could be in doubt.
Renee Smith-Valade, Vanoc’s director of communications, said in an email that the committee still is not worried.
So far, Vanoc has 228 GM vehicles in its pre-Games fleet. It will need another 4,370 or so during the Olympics.
“We’re working closely with GM on the roll-out plan for Games-time,” Smith-Valade said. “We are confident they will deliver the committed vehicles.”
In 2005, GM signed on with Vanoc, pledging $14 million in cash and $53 million in value in kind, primarily in the form of vehicles.
“There still has not been a company that has not delivered either a cash payment or value in kind when it was due under our contract,” Cobb told reporters after the board meeting.