New Delhi:
The games are less than two months away - and the sponsors still haven't signed on. Sponsorship for the Games stands at Rs 405 crore as against a target of Rs 960 crore.The target was 12 sponsors - two have signed on and there are just five co-sponsors instead of 24.
Sports Management and Marketing, the company hired for sponsorship marketing on the 2010 Commonwealth Games, has refuted all allegations of impropriety.
T S Darbari, the joint director general of the Commonwealth Games Organising Committee (CWGOC), is reportedly linked to a controversial deal with the Australian firm, Sports Marketing and Management (SMAM), which was allegedly promised close to 200 crore in exchange for delivering sponsorship for the Games.
Darbari may be sacked from the CWGOC, alongwith 2 other close Kalmadi aides, Anil Khanna and Sanjay Mohindroo, after allegations of corruption and censure by the sports ministry.
In a statement today, SMAM said Delhi 2010 Commonwealth Games has generated record breaking sponsorship income totalling over Rs 400 crore (USD 85 million) so far. That the company claims is the highest ever sponsorship generating program in Commonwealth Games history, surpassing the amount raised for Melbourne 2006 and double of that raised for Manchester 2002.
The statement also said that the company had offered to forgo its right to the contracted remuneration on sponsorship revenues generated from PSUs.
The statement says :
Following the recent decision to encourage sponsorships from PSUs as part of their corporate social responsibility activities, SMAM has, in the interest of helping Delhi stage successful Commonwealth Games, offered the OC to forego its right to the contracted remuneration amount on such sponsorship revenues. Instead SMAM will only charge a management service fee to cover the costs related to delivery and servicing of the sponsorship benefits. Like for all its clients, SMAM does not benefit in any way and is not remunerated on any grants or donations made by government.
World Sport Group (WSG) and SMAM are two independent and completely separate companies. WSG does not have any contract directly or indirectly with the OC nor has it had any financial dealings with the OC or government bodies involved with the Commonwealth Games. WSG provides SMAM with on the ground support in India in terms of local operational and sponsor servicing support.The Australian company says it is not under any investigation from any government authority and has not been contacted by any government authority, but will cooperate fully with any authorities should they have any queries.
SMAM says it was appointed by the OC in July 2007, following an international tender. Its remuneration, as per the contract, is totally linked to performance, and that its hasn't received any payment from the CWGOC till date.