TV SPORTS: Goodwill Haunted

by continued losses, but Time Warner still believes in Games
New Yorkers will be inundated beginning this week by a $40-50 million media blitz for the Goodwill Games, as Time Warner and Turner Broadcasting System turn up the heat to support the quadrennial event. But even before the first runner hits the track, Time Warner knows it will again lose money on the Games--this time about $10-20 million, a smaller loss than four years ago.
The marketing push behind the Games--which will take place in New York City and Nassau County, Long Island from July 19(Eth)Aug. 2--comes as Turner sold out its 16 sponsorship slots to such clients as Anheuser-Busch, Snapple, MCI, Johnson & Johnson, Sony and Swatch. The major sponsor deals will make up about 70 percent of the Games' ad revenue, which is expected to total $50 million. Lesser-spending sponsors include Home Depot, Simmons Mattress and the New York Stock Exchange, according to Mark Lazarus, executive vp of Turner Sports Sales. Additional revenue from overseas business and ticket sales are expected to narrow the overall loss to $10-20 million, based on $100 million in expenses, said Turner executives. The 1994 Games in St. Petersburg, Russia, lost $39 million and the 1990 Seattle Games lost $44 million.
Turner executives remain unfazed by the deficits, choosing to concentrate on the Games' potential as a powerful sports rights franchise wholly owned under the Time Warner tent. "We control all the vertical marketing now," said Lazarus. More than 25 divisions of TW, including magazines, television, entertainment, merchandising and licensing units, will support the fourth edition of the Games with promotional ads and other exposure.
Media buyers have mixed opinions about both the importance and viability of the event. "It's not a priority for people to watch, and it's not a priority to buy. I bet if you went out on the street and asked 10 New Yorkers what they were, eight wouldn't know," said one major sports buyer, who added that his clients steered clear of the event. Another buyer is concerned that the number of sports in the Games has been pared to 15, from 24 in '94.
Lazarus responded that the Games have been streamlined to make a more exciting TV package, with fewer, more high-profile events (TW cable networks will carry 56 hours of coverage and CBS will offer 10). Lazarus denied speculation that other TW divisions had their clients come to the Games' rescue, noting that TW deals with virtually every major national advertiser in some form.
"This year is a make or break year for them," another buyer noted. "It's in New York, they got some very high-profile athletes, and if they can make it a media event, it can have a future."