CWG: Firm gives up sponsorship incentive

first_imgA Singapore-based company hired to get sponsorships for the 2010 Commonwealth Games (CWG) has said it will forego its contractual right to commissions on sponsorship money it did not generate. Headlines Today had reported how Sports Marketing and Management Private Limited (SMAM) – as per a contract with CWG organisers – was to get commission even for sponsorships secured from other sources.  While the company got no sponsor for the Games in the last three years, it was earning Rs 50 crore as commission for contributions made by Indian PSUs. SMAM on Wednesday reacted to the Headlines Today report, saying it will give up its right to contracted remuneration from PSU sponsorships. Instead, it will only charge a management service fee to cover costs related to delivery and servicing of sponsorship benefits. SMAM said all allegations against it were baseless and denied being under investigation from any government authority. The deal to get sponsors was signed with SMAM in 2007. As per the contract, revenue up to 50 million dollars would bring the company a commission of 14.25 per cent. Anything between 50 million and 100 million dollars will bring a commission of 18.5 per cent. The commission will be 20.5 per cent for sponsorship deals over 100 million dollars.last_img read more