Indian Olympic Association (IOA) President PT Usha has defended her decision to renegotiate the sponsorship agreement with Reliance Industries Limited (RIL), stating that executive committee members were aware and involved in the discussions.
Usha’s actions came under scrutiny after a Comptroller and Auditor General (CAG) report alleged a loss of ₹24 crore to IOA due to RIL being granted four additional events without extra payment. However, Usha claims that the renegotiation was necessary to protect the rights fee of ₹35 crore payable by RIL.
According to Usha, RIL sought to reduce the rights fee by 50% after the International Olympic Committee (IOC) clarified that sponsor branding at the India House during the Paris Olympics would be limited to the inside of the NOC House. This would have deprived RIL of significant brand mileage.
Usha convened a meeting with RIL representatives and Rohit Rajpal, Chairman of IOA’s sponsorship committee, on September 20, 2023, to discuss the options. These included terminating the sponsorship agreement, accepting the 50% reduction in rights fee, or negotiating with RIL to ensure the establishment of the NOC House at Paris and protect future cash flow.
Usha maintains that all EC members, including Kalyan Chaubey, were informed of the discussions and were part of the decision-making process. She also highlights that Rajpal had spoken to RIL directly.
Usha’s comments come amid ongoing tensions with EC members over the appointment of Raghu Iyer as CEO. The EC has objected to Iyer’s pay package and has not ratified his appointment. Usha has called an SGM later this month to address the matter.
Usha expressed frustration with the EC’s behavior, accusing them of creating problems and attempting to “usurp power.” She cited examples of EC members seeking inappropriate positions and privileges, such as becoming Ski and Snowboard Chairman despite having no experience in winter sports.
Despite the challenges, Usha remains optimistic that the impasse will be resolved and that preparations for the Paris Olympics and India’s bid for the 2036 Olympics will not be affected.
