Rs 24 crore loss for IOA in Reliance sponsorship deal, reveals CAG report

The Indian Olympic Association's sponsorship agreement with Reliance India Limited has been criticised in a recent CAG audit report, which claims that the deal has unfairly favoured RIL and resulted in a loss of Rs 24 crore for the IOA.

The situation raises concerns about transparency and accountability in sponsorship deals, highlighting the need for thorough evaluations to ensure that agreements are equitable and in the best interest of the sporting body.

Under the sponsorship agreement dated 1 August 2022, Reliance India Limited was designated the Official Principal Partner for a range of major sporting events, including the Asian Games (2022, 2026), Commonwealth Games (2022, 2026), the 2024 Paris Olympics and the 2028 Los Angeles Olympics. This broad partnership grants RIL significant visibility and branding opportunities during key international competitions.

The concerns raised in the CAG audit regarding this agreement suggest that the terms may have disproportionately benefited RIL — potentially at the expense of the IOA's financial health.

‘In view of the above the IOA did not watch their own interest as there was no change in consideration amount, i.e., Rs 35 crore which was set in the Sponsorship Agreement signed on 5 December 2023 after giving the rights of four additional games to RIL,’ says the 12 September audit report received by the Hindustan Times, the daily reported.

‘The IOA should have raised the consideration amount from Rs 35 crore to Rs 59 crore as the consideration amount of rights of six games was Rs 35 crore, which was calculated on an average of Rs 6 crore per games.

’Thus, there was loss of Rs 24 crore to IOA due to faulty agreement with RIL and undue favour to RIL,’ the report noted. ‘The reason for not enhancing the amount by Rs 59 crores may be intimated to audit.’

IOA president P.T. Usha has been asked to respond.

Meanwhile, executive assistant to the IOA president Ajay Kumar said the agreement had to be renegotiated due to a ‘flaw’ in the original tender.

“When the agreement was signed and naming rights were granted, it was in the name of sponsors — Reliance India House. In 2022, the International Olympic Committee allowed sponsors‘ name with the country house. But in 2023 the IOC changed the conditions to say that the sponsor cannot use a name and it will have to be a country-named House,” Narang told the Hindustan Times.

However, IOA treasurer Sahdev Yadav said the executive council and the sponsorship committee were not involved in the decision-making process.

"It seems there are some concerns regarding the amendment without proper consultation," he said.