IMG-MODI-RIL
Sunday Guardian
IPL Commissioner Lalit Modi and Mumbai Indians franchise owner Mukesh Ambani have a common fascination for the international sports company IMG. IMG has inked a joint venture with Reliance Foundation to build sporting competencies through academies and events, other than IPL, in India. Modi had the same idea four years ago, with the same partner, but could not implement it.
Mumbai Indians, heavily backed to win IPL this evening, are owned by IndiaWin Sports, a part of the Reliance Industries empire. Modi, in a cosy deal, has made inordinately high payments to IMG for its organising role in IPL events, for which he was castigated severely by the BCCI working committee. Modi was rescued at this meeting by his mentor Sharad Pawar.
When Modi was under severe pressure this week to quit so that BCCI could cover its tracks and pretend to clean up with the help of a new committee, he called on Mukesh Ambani and asked the latter to help him survive.
Modi's relationship with IMG goes back a long way. Modi was widely reputed to be the power behind the throne in Jaipur when Ms Vasundhara Raje was chief minister. At that time he promoted Pink City Sports Complex Ltd and signed a significant deal with IMG in 2006 in which Pink City would pay $312,000 per year to IMG for the first ten years. But over 25 years, the amount would extend to Rs 4200 crores at the current exchange rate of Rs 46 to a dollar.
The plan was to garner 1500 acres in Rajasthan using influence, out of which 500 acres would be set aside for IMG academies. IMG would bring international tournaments to India, and Pink City would become the sole and authorised distributor to exclusively sell licensed IMG merchandise in India. Pink City's revenue model was to bring in prestigious academies like Nick Bollettieri and David Leadbetter. The former has produced stars like Pete Sampras, Andre Agassi, Martina Hingis and Venus Williams, which the latter has coached Greg Normal, Nick Faldo and Ernie Els, among others. But, IMG officials have confirmed, this deal was rescinded in 2007 for reasons that were not disclosed. On being contacted IMG's Jim Gallagher said, "Apparently there was a preliminary deal reached but was later rescinded."
According to documents and correspondence (copies of which are with this paper) exchanged between Ted Meekma, senior vice president of IMG, director of IMG Academies and Deepa Raizada, a close associate of Modi, IMG agreed to also set up IMG Soccer Academy, Intrnational Performance Instittue, IMG academies on polo and equestrian sports, shooting, archery and swimming.
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