6 Days to Go....

I did an interview this week with the Chicago business press in advance of the IOC decision. It's for a supplement to run (and only run) if Jacques gives them the nod. It felt strange to be debating whether Chicago could reach the $1.3bn sponsorship revenue they're expected to generate from the sponsorship.. it wasn't that long ago I was answering the same question for London!

My view? Irrespective of the economy Chicago can hit the number. However they will need to recognise from the start that London 2012 has changed the world of sponsorship for good. LOCOG have done a very good job thus far in a tough market.

I imagine domestic sponsorship for a Chicago Games will be a $80m - $150m corporate investment, with a need to pay back over 4-6 years. That's not a marketing investment figure in this market. Potential sponsors will be using the same disciplines as if they were buying a company of that size. It's not a world of viewing figures, it's a world of business models - revenue growth and cost savings, discounted cash flows. In many ways its the world of a venture capitalist - can I turn this asset around to generate a return over 4 years. LOCOG has been successful thus far because they have recognised that very early on. As it stands, in my view the US marketing industry is not set up to cope in the same way.