NEW YORK (CNN/Money) -
While ad sales for the upcoming Olympics broadcasts have been brisk, advertisers are putting new clauses in their contracts to protect them in case the games are either halted or upstaged by a terrorist attack, according to a published report Wednesday.
The Wall Street Journal said that NBC Universal, the General Electric unit broadcasting the games on NBC and its affiliate cable networks, has agreed to give advertisers written assurances not present in the last Summer Olympics in Sydney in 2000. Warnings about new terrorism threats and concerns about the security measures for this month's games in Athens prompted the clauses, according to the report.
"We are in the business of protection, so it only makes sense for us to make every effort to protect our brand," Lisa Cochrane, a vice president at insurer Allstate, said about her company's agreement that gives it the ability to negotiate a possible cash refund should the games be canceled or interrupted.
Networks often give advertisers additional free commercials if the show they are buying does not meet ratings guarantees. NBC had to do that when the Sydney games posted disappointing ratings, due partly to the time difference that caused tape-delayed broadcasts of events. But networks generally prefer not to give money back to advertisers. NBC Universal Television Networks Group President Randy Falco would not give details of the networks' assurances to advertisers this year, but he told the Journal, "These are customers, so we are always going to work something out to make them feel comfortable with advertising during these big events."
The paper reported that major Olympics advertisers General Motors and Home Depot also have contingency plans in their contracts, but it did not give details.
GE said last month that it was expecting $900 million in revenue and $20 million in operating profit from the Olympics, which open Friday. It is paying $793 million for the U.S. broadcast rights for the games.
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