Lockout issue scares big SEA Games sponsors

Calling for a no-lockout policy on sponsorships for this year’s Southeast Asian Games is easier said than done.

In fact, while there are those hoping that the no-lockout policy would lure more and more sponsors, it’s the different firms and corporations themselves, those based here and abroad, who might just say no to it.

Philippine SEA Games Organizing Committee vice chairman Jose "Peping" Cojuangco broached the idea of a no-lockout policy after Smart Communications signified its intentions to throw in at least P100 million as sponsor.

The problem, however, is that Globe Telecommunications has beaten Smart, its industrial rival, to the draw, having sealed its own P100 million sponsorship deal with Philsoc chairman Roberto "Obet" Pagdanganan.

The P100 million package presented by Pagdanganan to Globe stated an institutional lockout provision, meaning no other player in the telecommunications industry, like Smart, could get in as SEA Games sponsor.

Cojuangco said he will try to convince Globe to lift the lockout provision and at the same time appealed to the entire private sector to agree on a no-lockout policy and help raise the needed P800 million budget to run the Games.

"The private sector should look at this hosting as a national effort and not a business effort," said Cojuangco in airing his appeal.

But to the giant firms and corporations planning to throw in millions and millions of pesos, it’s not that simple in that the no-lockout policy won’t give them any protection or, in short, a good return of investment.

"What do you get for sponsoring the SEA Games for P100 million when your main rival could also get in for just P10 million? So, if the sponsors suddenly decide to throw in just P10 million each, then you get less in the end," said a Philsoc insider.

"Under the no-lockout scenario, if Samsung Korea agrees to sponsor this SEA Games for $1 million, who will stop Sony Philippines from coming in as sponsor for just P10 million? Do you think Samsung will like that?"

"Will Samsung agree on a sports venue where it has streamers beside Sony’s when it shelled out $1 million against P10 million? I don’t think that will happen. Even in the Olympics, once Master Card is in, then it’s automatic, Visa is out," he added.

Philsoc, according to its media bureau chief Dindo Danao, can arrange, prepare and present different packages on how rival sponsors could be accommodated despite differences on the amount involved.

Cojuangco also told mediamen last Thursday that he has set up meetings with beverage rivals Danding Cojuangco of San Miguel Corp. and Lucio Tan of Asia Brewery in the hope of luring them as SEA Games sponsors.

Again, this is so much easier said than done.

This will be a big test for Cojuangco — to bring the two life-long competitors together. Once he succeeds, then the rest will have to agree that the country’s hosting of the SEA Games is truly a "national and not a business effort."