TV rights: targets, claims vary

Much has been talked about during the past year about bulging revenues, and the Organising Committee (OC) officials continue to claim that they have exceeded targets and expectations as far as television rights for the Commonwealth Games are concerned.

The recent CAG report pointed out a loss of Rs 24.60 crore because of the engagement of Fast Track, a London firm, as the agency for selling broadcast rights even though it had claimed a higher commission than a second agency in the fray.

Excellent record

In defence, both the Commonwealth Games Federation (CGF) which recommended Fast Track, and the OC, pointed out the excellent track record the British company had and the eventual achievement it could show by procuring record rights fee for the OC.

The CGF said that Fast Track had “surpassed our dreams” and “not only met but exceeded all our targets”.

The OC Secretary-General, Lalit Bhanot, also endorsed that view.

According to the CAG report, Fast Track had finalised deals amounting to 42.87 million dollars and was processing another agreement worth 3.36 million dollars with the British Broadcasting Corporation (BBC) for UK/Ireland territory rights. This indeed is a very good amount for a Games that can only get a limited audience world-wide.

The OC stated that the total was almost double the projected target of 30 million dollars. But a look at India's original bid document presented to the CGF meeting in Kingston, Jamaica, in 2003, tells a different story.

The Indian Olympic Association (IOA) bid projected a revenue of 66.60 million dollars from broadcasting rights.

In fact the CGF Evaluation Commission, headed by Mr. Dick McColgan, notes in its exhaustive report presented to the CGF Executive Board and Commonwealth Games Associations in October, 2003, in respect of the IOA bid: “Television revenues (USD 67m) appear to be overstated compared with past achievements.” (In contrast, the Evaluation Commission termed the figure of 15.59 million dollars given by Hamilton, Canada, as its television rights expectation as “conservative”.)

The IOA also projected 100 million dollars from sponsorships in its bid document. Today, despite claims of having nearly doubled the television rights, the OC is poised to fall well short of its revenue target that has to help it return the “loan” of Rs. 1620 crore taken from the Union Government for the conduct of the Games.

Add another Rs. 678 crore as an additional “loan” under ‘overlays”, then the OC gets into further squeeze.

The OC has also sought another tranche of loan amounting to Rs 720 crores for the conduct of the Games, citing cost escalations and unforeseen additional expenses.