New Delhi:
Australia-based company, Sports Marketing and Management has reacted to its contract being terminated by the Commonwealth Games Organising Committee for the 2010 Games.
In a statement today, SMAM said the OC has "wrongfully, viciously, terminated agreement" and the "grounds for termination are imaginary and concocted.
The company has refuted the OC's charges of non-performance, and says the OC's intentions indicate that it will not honour its financial commitments.
Reacting to SMAM's allegations, the OC Secretary General , Lalit Bhanot told NDTV that the Australian company is free to take any action it wants to. Bhanot said,"The contract with SMAM was terminated, there is no question of revoking it."
Sports Marketing and Management (SMAM), based in Melbourne, was brought on board to land sponsors and advertisers. The company was allegedly entitled to upto 23% commissions.
However, as NDTV first reported, the sponsorship so far is less than half its target - Rs 405 crore against a projection of Rs 950 crore. Most of the sponsors who've signed up so far are either Indian Public Sector Units (PSUs) or Indian companies who've reportedly dealt directly with the Organising Committee.
SMAM, however, claims that it had got record-breaking deals worth Rs 400 crore for the Games.