As expected, NationsBank became the latest sponsor of the 2002 Winter Games Thursday in a deal that includes letting Olympic organizers borrow up to $170 million.
The North Carolina-based bank also is expected to pay $50 million to sponsor the 2002 Winter Games as well as every U.S. Olympic team through the 2004 Summer Games in Athens, Greece.Negotiations have been ongoing for more than a year with the bank, which sponsored the 1996 Summer Games in Atlanta. Last month, the biggest issue was settled when the bank agreed to a $170 million revolving line of credit.
There was little doubt NationsBank would become the official bank of Salt Lake City's Olympics, especially because the former head of the 1996 Summer Games was hired as a vice chairman of the bank last year.
"You know me, I'm a cheerleader," Payne told the Deseret News. He persuaded the then brand-new NationsBank in 1992 to become the first sponsor of the Atlanta Games for $40 million plus a $300 million line of credit.
The money borrowed by Salt Lake organizers will be used to cover bills while they wait for revenue payments due from NBC and other broadcasters. Much of that revenue isn't due until after the Games are over.
SLOC board Chairman Frank Joklik called getting the money a relief at Thursday's announcement of the bank's sponsorship. He said it "guarantees we'll be funded." Organizers plan to spend more than $1 billion.
The terms of the loan were approved by the SLOC Board of Trustees last month, but the name of the bank they were borrowing the money from was not announced at that time.
Local banks were not considered for the bank sponsorship and had been said to be unable to provide a large enough line of credit. It took a consortium of local banks to make $25 million available to organizers in 1995.
But Spence Eccles, an organizing committee trustee and the head of First Security Bank, said Thursday that local banks were willing to offer the same line of credit as NationsBank.
Eccles said the banks, however, were unable to provide the same long-term sponsorship. NationsBank, which does not yet have branches in Utah, will offer banking services to Olympic participants.
The services were offered at no charge to athletes at the 1996 Summer Games and included safe deposit boxes to store Olympic medals as well as foreign currency exchange.
Payne would not speculate Thursday on whether NationsBank would open branches in Utah before the 2002 Winter Games. The company is the third-largest bank in the U.S. with branches in 16 states and Washington, D.C.
To extend its operations to Utah, state officials have said the bank could purchase an existing bank or bank branch located within the state or simply charter a new bank.