PT Usha says there is 'no financial losses' for IOA in response to reports of Rs 24 crore loss to Indian Olympic body

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In a recent statement addressing the Indian Olympic Association's (IOA) internal strife, legendary runner PT Usha, the IOA President, has firmly refuted allegations made by treasurer Sahdev Yadav regarding financial mismanagement and loss of ₹24 crores due to a sponsorship agreement with a private firm RIL.

The claims emerged following a report from the Comptroller and Auditor General of India (CAG), which highlighted perceived "faulty" arrangements that supposedly benefited the private body at the IOA's expense.

The controversy originates from a sponsorship agreement signed on August 1, 2022, granting RIL the rights to associate with the IOA as the Official Principal Partner for several prestigious events, including the Asian Games and the upcoming 2024 Paris Olympics.

According to the CAG audit report, the IOA failed to safeguard its interests by not amending the agreement to reflect recent International Olympic Committee (IOC) guidelines, which prohibit sponsors from acquiring naming rights for National Olympic Committee (NOC) houses. The report alleged that this oversight resulted in a financial loss of ₹24 crores to the IOA.

In her statement, PT Usha clarified that the issues raised stem from a flaw in the Request for Proposal (RFP) document issued by the previous IOA management.

"There has been no financial loss to the IOA," she asserted, highlighting that the naming rights were granted under a flawed RFP that lacked a critical clause to protect the organisation's interests. The clause, which should have stated that the naming rights were "subject to the guidelines of the International Olympic Committee (IOC) and the Host Territory," was omitted. This oversight became significant when, in June 2023, the IOC issued new guidelines prohibiting such arrangements.

As a result of these developments, RIL sought to renegotiate the terms of their agreement, proposing a 50% reduction in the previously agreed hosting fee. Faced with limited options, the IOA opted to renegotiate the agreement, ensuring that it would retain a significant portion of the rights fee.

PT Usha elaborated, stating, "The additional events granted to RIL in the renegotiated agreement provide minimal visibility to sponsors compared to high-visibility events like the Summer Olympics, Commonwealth Games, or Asian Games." She argued that the CAG's report inaccurately compared the visibility of these less prominent events to those with substantial exposure.

Usha also addressed claims made by Yadav, who alleged that she acted without consulting the IOA Executive Council. "These claims are part of a deliberate attempt to tarnish my reputation and discredit the IOA," she stated. In reality, she explained, the renegotiation proposal was circulated to all Executive Council members, and legal counsel was involved throughout the process.

"The Addendum to the agreement was drafted under the guidance of one of India's leading sports lawyers," she added, highlighting the procedural integrity of the negotiations.

Despite her efforts to clarify the situation, the infighting within the IOA continues to escalate. Tensions have risen as PT Usha has called for a Special General Meeting (SGM) on October 25, 2024, to address various pressing issues, including the appointment of a CEO.

The appointment has been contentious, with some Executive Council members reportedly resistant to Usha's choice, Raghuram Iyer, who is perceived as crucial to the organisation, especially with India keen on hosting the 2036 Olympics.

In her concluding remarks, PT Usha affirmed her commitment to protecting the interests of the IOA and its athletes, stating, "All decisions taken were in the best interest of the IOA and the Indian athletes, ensuring that no financial loss was incurred."

She cautioned that any further attempts to mislead the public or undermine the IOA's efforts would be met with appropriate legal action.