Philsoc faces financial woes

The Philippine Southeast Asian Games Organizing Committee will now have to depend on its own resources to produce the P1 billion budget to this year’s SEA Games after Inter Sports, the Malaysian marketing firm commissioned to handle the job, announced its withdrawal.

Roberto "Obet" Pagdanganan, chairman of the Philippine SEA Games Organizing Committee, yesterday announced the grim development, which left the heavy burden of raising the P1 billion budget on the beleaguered hosts.

Inter Sports, which has handled the marketing program of at least four past stagings of the SEA Games, including the 1991 Manila edition, has pulled out of this year’s biennial event effective Feb. 28, 2005.

In its previous discussions with Philsoc, Inter Sports was supposed to raise the funds from international sponsors. How much it could actually raise was never announced but sources said it would have been enough to cover the entire budget.

With Inter Sports now out of the picture, Philsoc faces the extreme challenge of raising the P1 billion through domestic sponsors. Philsoc’s marketing group is headed by Pete Cura.

"Inter Sports was supposed to handle international sponsors. For example, if a Philippine-based firm cannot shell out the money, maybe their mother companies or home offices overseas can. This is where Inter Sports was supposed to come in," said a Philsoc source.

"But with the Malaysians out, the responsibility becomes more than double," added the source.

"If Philsoc fails to do it, the only solution is for the national government to step in and issue a commitment that whatever Philsoc fails to raise, it will handle and provide for. Otherwise, how can you run the Games? What if Philsoc raises only P500 million?" he added.

A different source said Inter Sports lamented the fact that "too many cooks spoiled the broth," referring to the many layers of leaders involved in the project.

With only eight months left before the SEA Games, only Globe Telecommunications has sealed a deal with Philsoc in the amount of P100 million.

There are other companies like Smart Communications, San Miguel Corp. of Danding Cojuangco and Asia Brewery of Lucio Tan willing to help but they will now have to probably give more than they had earlier planned.

Pagdanganan, however, remained unfazed.

"The job has certainly become tougher but we have a lot of businessmen and businesses more than willing to rise to the occasion," said Pagdanganan who has set a series of meetings with local marketing stalwarts to address the issue.

While there is time.