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November 7, 2001
<br />MIAMI (AP) -- Struggling telecom company Ericsson will drop its $6 million-a-year title sponsorship of the Ericsson Open after next year's tournament.
The Key Biscayne, Fla.-based event, the second-largest tennis tournament in the United States, began a five-year title agreement in 2000 with the Swedish company. Slumping business, including losses of $377 million in the third quarter this year, prompted Ericsson to pull out two years early.
``The current economic downturn has posed business challenges that we could not have anticipated when we entered into this sponsorship,'' company spokeswoman Kimberley Korb said in a statement Wednesday.
The tournament, owned by International Management Group, will seek a new title sponsor beginning in 2003.
``Ericsson has been an excellent partner,'' tournament chairman Butch Buchholz said. ``We are duty-bound to work with Ericsson on an exit arrangement that both the tournament and Ericsson are comfortable with.''
Before the deal with Ericsson, the tournament's title sponsor was Lipton.
<br />MIAMI (AP) -- Struggling telecom company Ericsson will drop its $6 million-a-year title sponsorship of the Ericsson Open after next year's tournament.
The Key Biscayne, Fla.-based event, the second-largest tennis tournament in the United States, began a five-year title agreement in 2000 with the Swedish company. Slumping business, including losses of $377 million in the third quarter this year, prompted Ericsson to pull out two years early.
``The current economic downturn has posed business challenges that we could not have anticipated when we entered into this sponsorship,'' company spokeswoman Kimberley Korb said in a statement Wednesday.
The tournament, owned by International Management Group, will seek a new title sponsor beginning in 2003.
``Ericsson has been an excellent partner,'' tournament chairman Butch Buchholz said. ``We are duty-bound to work with Ericsson on an exit arrangement that both the tournament and Ericsson are comfortable with.''
Before the deal with Ericsson, the tournament's title sponsor was Lipton.