New Delhi, Aug. 9: The build-up to the Commonwealth Games is starting to unravel as the October 3 to 14 event approaches. Among a growing list of blunders alleged to have committed by the Organising Committee in recent times, here’s another one: With just over 50 days to go, the Games is set to lose its biggest money-spinner —merchandising.
The Games’ official apparel that was to be launched at the OC office and across the city in the capital on Monday, has been postponed yet again by the Games officials. The CWG’s licensing and merchandising partner Premier Brands is now threatening to pull out off the deal altogether.
“We’ve had enough. This is the fourth time we have been stopped from launching the Commonwealth Games merchandise at the eleventh hour.
We are seriously considering backing out of the deal,” Premier Brands chairman Suresh Kumar told this newspaper on Monday.
“I’m just fed up with the process.
“We had four vans full of Games apparel at the OC office and goods ready to be sold at 70 stalls across Delhi. We had even brought 50 school kids. I got a message at 12:30 pm today that the launch had been postponed again and that I had to await further notice.”
Merchandising is an integral part of big-ticket sports events around the world, and is usually one of the primary techniques to earn back the money that has been invested in infrastructure and the conduct of the event.
Just as an example, even in a non-soccer playing nation like the USA, sales of official Fifa World Cup merchandise crossed $35 million. For the CWG, intellectual properties like the Delhi 2010 logo, the mascot (Shera), Games pictograms and Team India logos could have been leveraged.
“Our plan was to generate widespread participation. We wanted every Delhiite to own a part of the Games, and treasure them.
These products generate a sense of belongingness towards the Games.”
Kumar said even if the company was to keep the deal alive, the losses incurred would be huge. “We had set our break-even point at Rs 88 crores. Even if we stay on, how much money can we make in 50 days? Not even 30 per cent of our estimates,” he added. “Zero merchandising has never happened for any sports event in any nation’s history.”
The licensing process has been jinxed from the start. The Organising Committee had originally floated the merchandising RFP (request for proposal) in November 2009, but the tender was ultimately issued only this April.
Even after selecting Premier Brands, OC officials repeatedly asked the firm to put the items in deep freeze. “What’s more, they don’t even give us a reason,” Kumar added.
The OC officials including spokesperson Lalit Bhanot rejected comment on the issue, despite repeated attempts.
Before Monday, though, they had admitted that with the lack of sponsors and a minuscule amount generated from TV rights, the Organising Committee was depending on money from ticket sales and merchandising to repay off the Rs 2,394 crore-loan given to it by the central government.
“We’ll take a final call tomorrow or day after,” Kumar said.