Indian Olympic Association (IOA) president PT Usha on Tuesday said that executive committee members at loggerheads with her were aware and part of the discussion that took place with Reliance Industries Limited (RIL) to renegotiate the terms of sponsorship agreement to protect the rights fee of ₹35 crore payable by it to IOA.
Usha has faced the flak after a Comptroller and Auditor General (CAG) report issued a half margin (audit memo) and observed a loss of ₹24 crore to IOA on account of RIL been given four extra events without any extra price – Winter Olympics (2026 and 2030) and Summer Youth Olympics (2026, 2030). HT first reported about the CAG observations.
IOA and RIL entered into a partnership on August 1, 2022 which allowed the latter to become the principal partner for Asian Games (2022, 2026) Commonwealth Games (2022 and 2026) and Olympic Games (2024 and 2028). Among other things, under the agreement RIL was to construct and showcase the India House at these Games.
In June 2023, the International Olympic Committee (IOC) informed IOA that sponsor branding at the India House during the Paris Olympics “can only be present inside the NOC House.”
RIL then wanted to renegotiate because the ‘naming rights’ clarification by IOC would deprive it of brand mileage.
“In proposed terms of renegotiation by RIL, RIL wanted to reduce the rights fee by 50 percent to compensate for the loss in naming rights – i.e. to pay ₹17.5 crore in lieu of ₹35 crore as initially agreed. The president convened a meeting of RIL representative and Mr Rohit Rajpal (Chairman of IOA’s sponsorship committee) on Sept 20, 2023,” Usha said in her reply to CAG which she said was filed on Tuesday.
Usha said discussions took place between herself, Rajpal (he is also an EC member) and the RIL representative. “The options available were to terminate the sponsorship agreement and abandon setting up of the NOC House at Paris Olympics; accept the 50 percent reduction in rights fee; negotiate with RIL to ensure that the plans for setting up of NOC House at Paris were not derailed and protect its future cash flow.”
She said that after hearing from RIL, mail was sent to all the EC members including Kalyan Chaubey as he had sent mail to everyone. Rajpal had also spoken to RIL. So, it is not that they were not consulted and they were not part of the decision making,” Usha told HT.
Usha and executive committee members are at loggerheads with regards to the appointment Raghu Iyer as CEO. The EC has raised objections about his pay package and not ratified the appointment. Usha has now called an SGM later this month to deal with the matter.
“How long can we continue like this?” said Usha. “So much struggle before the Paris Olympics. Now two years have passed. I am doing everything possible but I don’t want to go the wrong way. I am always following the constitution.”
She said EC members have been creating problems from the first day and are looking to “usurp power”.
“I am giving an example; if some EC members want to be Ski and Snowboard Chairman – a wrestler— can it be allowed? It would be better if someone in winter sport became the chairman and I appointed Shiva Keshavan. They all objected to it.
“If somebody wants to go to the Asian Games and take hotel rooms at three places, can I agree? They wanted to go to the Olympics using the cards that are meant to be given to the federation officials because they should encourage their players. The EC members want that too.
“They want to be in every committee, either as chairman or vice-chairman. They want to be chefs-de-mission and deputy chefs-de-mission. I am against all that. I am here to bring some positive changes. I will not compromise.
“I have received complaints. They are giving affiliation to NSFs (federations) without asking the general body, like it happened with the taekwondo federation,” Usha said.
She said that a CEO was an important part of the constitution, but EC members do not want one.
“After the IOC session in Mumbai, the Prime Minister I think asked “why are you not appointing a CEO” and that’s when the Sports Ministry started asking us. I said “I tried my best but nobody (EC members) wants a CEO. What have I done wrong?”
Usha wasn’t sure how and when the current impasse between her and other EC members would be resolved – she said a number of payments were pending because the treasurer was refusing to sign the cheques – but is optimistic that it would be sorted out. The former track queen is also confident that work related to India’s bid for the 2036 Olympics too would not suffer and that communication with the IOC was ongoing.
