CWG: Fennell, Hooper pushed through dodgy SMAM deal

Remember the Commonwealth Games Organizing Committee's controversial deal with Australia-based Sports Marketing & Management (SMAM)? The one that was hurriedly scrapped when it was discovered that SMAM was getting money for jam - a commission, ranging between 15 and 23%, not only on sponsorships brought by it for the Games but also on sponsorships coming to the Games anyway, like money from PSUs?

Well, it now transpires that the deal was pushed through by none other than those who are monitoring the Games - the president of the Commonwealth Games Federation (CGF) Mike Fennell and the CGF CEO Mike Hooper. These two top officials brushed aside the objections raised by the CGF vice-president Tunku Imran and virtually made their approval conditional on the Rs 200-crore contract being given to SMAM.

According to internal documents in TOI's possession, the agreement with SMAM came up for discussion at the OC's executive board meeting of June 7, 2006. Mike Fennell felt that “the Board may take a decision in principle approving the appointment of M/S Sports Marketing & Management for the sponsorship and commercial rights and M/S Fast Track for International Broadcasting rights based on their experience, past track record and their offer.”

His deputy, Mike Hooper, concurred. Not just that, Hooper pointed out that the OC required “CGF approval in relation to the appointment of any agencies for the exploitation of sponsorship and television rights” and added that if SMAM was being given the deal “this approval would be forthcoming.”

At this point, Tunku Imran put in a word of caution, saying the “OC should not put all its eggs in one basket.” But the majority carried the day and two of the OC's most controversial deals were thus signed. The deal with Fast Track for broadcasting right is already under fire from the CAG, while the deal with SMAM was summarily terminated on August 6.

The person who signed the deal with SMAM on OC's behalf was secretary general Lalit Bhanot. Bhanot has been on networks as OC boss Suresh Kalmadi's spokesman ever since the Games scandals surfaced, often denying wrongdoings, or minimizing them, and when unable to do so in the face of overwhelming evidence, deflecting guilt on to other OC officers.

Fennell, currently in India, was initially very critical of the Games preparations, but is now one of its stoutest defenders. Even on Thursday, he claimed here that all mega-events like CWG 2010 have these kind of troubles in their run-up, conveniently overlooking Beijing's super-preparedness for the Olympics or even the fact that Glasgow, which will host the Commonwealth Games in 2014, has already readied some of the facilities.

As it turned out, SMAM was an abject failure in getting sponsors for the Games. In three years since the OC signed the agreement with it on July 25, 2007, it was able to bring just two sponsors - Hero Honda for Rs 37 crore and Coca Cola for Rs 18 crore. Against this performance, the OC in its balance sheet had made provision of paying Rs 184.48 crore to SMAM as commission.

An exasperated head of revenue of OC, V K Saksena, had pointed in an internal note in February 2010 that SMAM was inept even in basic skill sets required for the job. Saksena listed out a host of problems with SMAM: “They couldn't find any international or multinational sponsors despite their claims; failure to evaluate business opportunity and do even basic assessments; lacked adequate and qualified staff for client servicing; while SMAM blamed their failures on security threat and problems with Delhi preparations.”