Barclays abandons 2012 sponsorship race
Barclays has withdrawn from the race to become the first £200 million sponsor of the 2012 Games.
The move came as a surprise today because Barclays has bankrolled the organisers with a £50 million loan.
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It is understood that the bank, which also houses the London organising committee's staff in its Canary Wharf skyscraper, is winning enough exposure around the world with its £65.8 million sponsorship of the Premier League.
The current loan pays for the organising committee's operations, which will receive no other funding until the sponsorship deals are in place.
Paul Deighton, chief executive of the organising committee, will decide in the next few weeks on the first domestic sponsor in a deal expected to raise up to £200 million.
The tender process for the banking sector has now closed.
Barclays was widely considered to be the frontrunner because of its crucial financial support of the Games committee.
Organisers need to raise £750 million in sponsorship to help meet the £2 billion budget required to run the Games, excluding the building of venues and infrastructure.
After the banking sector, key sponsors will be sought from the automobile, telecommunications and utilities sectors.
Mr Deighton is said to have had successful negotiations with a wide range of sponsors and is confident he will strike lucrative deals.
A spokeswoman for the Games organisers refused to confirm whether Barclays had withdrawn today.
But she said: "We are happy with the response to the process."
Barclays would not comment on the 2012 project but its sponsorship of the Premier League gives the bank massive exposure around the world, whereas the 2012 sponsorship would be limited to marketing rights in Britain.
The bank that wins the sponsorship deal will have exclusive rights to the use of the Olympic rings in its advertising and will be able to run campaigns associated with Olympic figures such as London 2012 chairman Lord Coe.
