CGOC’s decision to terminate contract vicious, concocted: SMAM

August 11th, 2010 - 8:06 pm ICT by IANS  

New Delhi, Aug 11 (IANS) Australian firm Sports Marketing and Management (SMAM) Wednesday termed the Commonwealth Games Organising Committee’s (CGOC) decision to abruptly terminate their contract on grounds of non-performance as “imaginary and concocted” and an attempt to deviate attention from the more serious charges of financial irregularities the organisers are facing.
SMAM said it is yet to be paid for its work for the 2010 Commonwealth Games since its appointment in 2007.

The executive board of the CGOC last week terminated the contract with the SMAM, the Australian firm which was roped in to bring sponsors for the event.

According to CGOC, the SMAM was to deliver $122 million by June 30 through sponsors which it failed to do. They have decided to outsource the services of another company.

SMAM, in a letter issued to the CGOC regarding the termination, insists they got the highest ever revenue in the history of the Commonwealth Games, even surpassing the revenue achieved for the 2006 Melbourne Games.

“Owing to the diligent and concerted efforts by SMAM, a record breaking sponsorship income totalling over Rs.400 crore ($85 million) has been generated in respect of the Delhi 2010 Commonwealth Games so far. Further sponsorships are expected to materialize in the coming weeks,” SMAM said in a statement.

“The organizers fail to recognize that the sponsorship revenue targets that the OC set, and identified as one of the main grounds for termination, represent just one of several important objectives in the agreement,” SMAM said.

“The OC has wrongfully, viciously, abruptly and publicly terminated SMAM’s agreement in a manner that is not only counter to the agreement and inconsistent with the interests of staging successful Commonwealth Games in India, but also detrimental to the goodwill and reputation of the Commonwealth Games Movement.

“SMAM believes that the OC’s allegations and grounds for termination are imaginary and concocted and an attempt to deviate attention from the more serious issues and charges related to the upcoming Delhi Games. We also believe that the OC has served the alleged termination to SMAM as it does not intend to honour its financial commitments to SMAM.

SMAM said their were provided to OC by experienced executives.

“SMAM has been delivering an extensive range of marketing services to the OC since 2007. These services have been provided to the OC by experienced and specialized executives, from India and abroad, many of whom have delivered the then record-breaking and most successful 2002 and 2006 Commonwealth Games,” it said.

The firm also suggested they won’t hesitate to take the legal route for their payments as all their services as per the contracted have been solely funded by them.

“All services, personnel and related costs provided to the OC have been in accordance with the agreement and funded solely by SMAM for more than three years. The OC has not had to incur any risks or costs related to the services SMAM has provided.

“To date, SMAM has not received any payment from the OC for the work done on Delhi 2010, since its appointment in 2007. SMAM is legitimately entitled to immediate settlement of all its outstanding invoices, besides its rights to further payments and damages,” it said.

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