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Reebok blow to Sydney Games

Sporting goods giant Reebok has withdrawn its sponsporship of the Sydney Olympics, leaving the Games' organisers today with a financial headache.

Reebok, alleging breach of contract, also threatened to drag the games' organisers through the courts.

Reebok's promise to outfit the Australian team as well as an army of officials and helpers was worth more than 10 million Australian dollars (6.5 million US dollars).

Reebok says it is terminating the contract over a decision by the Sydney Organising Committee for the Olympic (SOCOG) to use another sponsor for hats and jerseys for Olympic volunteers.

''It doesn't conflict in our view at all,'' SOCOG chief executive Sandy Hollway said. ''We believe that Reebok should stick to its contract and that it is distinctly unhelpful with just eight months to go before the Games.''

Reebok, which had contracted to supply Australian athletes with competition and leisure gear, said it took the action very reluctantly.

The company said it has measured close to 3,000 people for garments.

''From our point of view it's been a huge exercise,'' said Reebok Australia general manager Keith Forbes.

UNI