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ahendra Singh Dhoni is arguably the biggest corporate brand in India. Yes, Sachin Tendulkar might have something to say about that, but he doesnt play all the formats of the game now and wont even play the IPL starting next season. In the years to come, Virat Kohli might give Dhoni some competition. So Dhoni stands above all and what has he done with this domination?
Well, for starters, according to an Economic Times article, a 15% stake bought by Dhoni earlier this year in the sports marketing firm (Rhiti Sports Management) that manages him has spawned a tangled web of business associations, raising issues of propriety and conflict of interest in at least two situations. Dhoni buying a stake in the sports marketing firm that manages him is not wrong in itself. But when the firm also manages Suresh Raina,
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Ravindra Jadeja, Pragyan Ojha and RP Singh a host of issues crop up. As Firstpost had pointed out in October 2011: Many were surprised by Rudra Pratap Singhs call-up for the tour of England. The left-arm seamer arrived looked well-rested and plump and even though the selectors tried hard, they just couldnt hide the fact that he was clearly unfit.
In July 2010, when Dhoni was seeking a new contract to manage his career he didnt go with a veteran marketing firm. But instead, he went with Rhiti Sports and his friend Arun Pandey. Dhoni signed a three-year deal with Rhiti Sports for Rs 210 crore, or an average of Rs 70 crore a year, the highest ever in Indian cricket. According to the Economic Times, in 2011-12, the latest year for which numbers are available and the first full financial year of the deal, Rhiti Sports recorded revenues of Rs 63 crore and a net profit of Rs 2.5 crore.
So how did he get into the squad? Of course, it helps if the skipper (Dhoni) likes you but it helps even more if you are managed by the same The report adds: The shares were allotted at company that manages Dhoni. The managepar value, which means Dhoni paid Rs 3 lakh ment company, Rhiti Sports Management, is in for the 15.1% stake. (Check out the charts beturn run by Arun Pandey Dhonis childhood low) friend and manager. Its all in the family, if you know what we mean. Basically put, he got them pretty cheap/ However, while the BCCI has chosen to procrastiShockingly, Anurag Thakur, joint secretary of nate acting on it, some voices of opposition have the Board of Control for Cricket in India (BCCI) already spoken out. told Economic Times that he had never heard of this allegation. I have come to know through various sources and newspapers that Dhoni has 15% stakes in I have heard it for the first time, said Anurag Rhiti Sports which is contracting a few playThakur. If there is a concern, we may look into ers in the Indian team. He also has a position the matter. of Vice President in India Cements. So I dont know if its a conflict of interest or not that Im Whether Thakur acknowledges it or not, there sure the board will tell us, former India crickis concern. But the BCCI seems like it would eter Kirti Azad said. rather sit back and wait for some scandal to force their hand.
2013 and the shareholding was transferred back to promoter of the company on 26.04.2013, Rhiti Sports chairman Arun Pandey said in the statement. But even though Dhoni holds no shares in the company, Pandey and Dhoni continue to be business partners, and that basically means that the conflict of interest remains a very distinct threat for the Indian captain and for Indian cricket on the whole. Dhoni still has a stake in Rhiti MSD Alamode Pvt Ltd 65 percent (for Dhoni and his wife Sakshi), 30 percent (Arun Pandey) and 5 percent (Rhiti Sports). Former India opener Chetan Chauhan has said it was ethically not correct for Dhoni to have stakes in the company, which manages him. Ethically this is not correct. It seems to be trickling down from the president. The Board officials need to take some harsh decisions and make it clear what business the players and officials can float of their own, he said. VVS Laxman felt that the Indian skipper should sell off his shares, if he had any, as it could drive him into a compromising situation. When such a problem arises, stakeholder should come out of the company by selling his shares off. I think that can solve all the problems at one go, he said. As things stand, Dhoni has two clear choices. His only choices. 1. Step down. Once he steps down as captain, he
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After the Economic Times broke the story about the Indian skippers 15 percent stake in Rhiti Sports, the sports marketing/management company responded with a statement to clear the air. As on date, MSD holds no shareholding in Rhiti Sports Management (P) Ltd. However, it is made clear that shareholding was allotted to MSD on 22.03.2013 only to secure certain old outstandings which were due for more than one year. Further, the payments were cleared in April
cant influence team selection. The conflict of interest talk will die down. 2. Sell his stake and disassociate himself from Rhiti Sports in every way possible, which is what VVS Laxman has suggested. And he gets to stay as the captain of India (god knows we need him there.) The Boards interim head Jagmohan Dalmiya, however, said that he couldnt comment on the issue till further details were ascertained. I havent gone through the matter yet. Cant comment until I have full knowledge of the facts, Dalmiya told The Indian Express.
BCCI vice-president Niranjan Shah said: As of now, all we have are media reports. We will discuss it in our next meeting. Dalmiya will decide when is the next meeting. First we have to find out if at all theres a conflict of interest. If we are convinced, only then will we ask the them (the company) to submit the papers. So for the moment, the BCCI has put the issue on the backburner. But doesnt Dhoni have his own conscience to answer to? Then again, in this day and age, what good is a conscience
ndian captain Mahendra Singh Dhoni has come under sharp attack from some former cricketers for his alleged conflict of interest for having stakes in the sports management company, which handles him and three of his Indian teammates. Dhoni found himself in a controversy when it came to light that he had 15 per cent stake in Rhiti Sports, which also manages Suresh Raina, Ravindra Jadeja and Pragyan Ojha, besides the Indian captain. However, the firm has made it clear that Dhoni was a shareholder only for a brief period, and currently has no stakes. But former Indian cricketers and sports management executives feel that Dhoni should not put himself in such a position where questions could be raised about a possible conflict of interest. Obviously, the documents that have come out indicates that it has been a conflict of interest as far as Dhonis involvement with Rhiti Sports is concerned, former cricketer Kirti Azad told PTI. I dont mind if an ex-cricketer is acting as an agent for a living. But when I see Pragyan Ojha being relegated to second choice left-arm spinner suddenly and Ravindra Jadeja being valued at USD 2 million after being banned for trying to cut underhand deals in IPL, I guess something is wrong. Also if the company didnt have sufficient money, how did they issue shares and paid it
back, Azad pointed out. Another former cricketer Maninder Singh also felt if the captain indeed had shares it was a clear case of conflict of interest. But who do you expect to stop the rot when the BCCI president has gone against everyone who has stood up for the gamebasically the president has been saving the captain who is also vice-president in his company, he said. Former India opener Chetan Chauhan said ethically it was not correct for Dhoni to have stakes in the company, which manages him. Ethically this is not correct. It seems to be trickling down from the president. The Board officials need to take some harsh decisions and make it clear what business the players and officials can float of their own, he said. Madan Lal said that it was not proper for Dhoni to have stakes in the company but did not think he could manipulate team selection. There is no question that if it is true, there is a conflict of interest, he said. VVS Laxman felt that the Indian skipper should sell off his shares, if he had any, as it could drive him into a compromising situation. When such a problem arises, stakeholder should come out of the company by selling his shares off. I think that can solve all the problems at one go, he said.
Look at most cases of corruption and irregularity and you will find a nexus of politicians, businessmen and bureaucrats at work, with or without the involvement of their relatives. This opportunity to lustfully feed ones greed is what gives precedence to convergence of interest over the ethical considerations that arise out of conflict of interest issues. Scam after scam has demonstrated that conflict of interest is at the heart of corruption and mis-governance in India. Just as our system is tolerant of bad/rash/negligent driving even though serious accidents and fatalities occur from time to time, conflict of interest is not considered a serious aberration to begin with till such time that a scam breaks out and surfaces before the public. This same cycle repeats again and again because Indians are tolerant of convergence of interests. Look at the numerous instances in which this was at work in the BCCI and the IPL which are now under the spotlight. In the latest case of the IPL match-fixing and betting scam, it is only now that questions are being asked about how and why did the BCCI chief Sharad Pawar grant permission to Board member N Srinivasan to own a team. A January 2008 letter establishes how Pawar, on the advice of other BCCI members, allowed India Cements to participate in the bidding process for IPL teams. All was well for Pawar, Srinivasan, the entire board, the media and others till CSK team owner and sonin-law Gurunath Meiyappans arrest for allegedly placing bets through alleged bookie Vindoo Dara Singh. No one raised a hue and cry about the exception being made to favour Srinivasan. Conflict of interest was at the heart of the Bofors scam when investigations revealed that the Italian middleman in the scam, Ottavio
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Everyone understands this principle but few care about it, especially in India, where convergence of interest is what rules and conflict of interest is taken as lightly as breaking traffic rules. In the light of the latest expose in The Economic Times, Dhoni has some explaining to do with regards to his interests in Rhiti Sports which was managing him and four other cricketers, two of whom (Suresh Raina and Ravindra Jadeja) were members of his own team, Chennai Super Kings.
Quattrocchi, was a close family friend of Sonia Gandhi with unrestricted access to the Gandhi household. There was no sign of former Union railway minister Pawan Kumar Bansals resignation for a week after his own nephew was arrested while accepting a bribe of Rs90 lakh to allegedly fix a lucrative posting for a senior railway official. As in the case with Srinivasan, the argument offered was that there was no evidence of corruption by Bansal himself and therefore it was not necessary for him to resign. The sudden, meteoric growth achieved by firms belonging to Bansals relatives after he became the railway minister, and allegations of railway catering contracts doled out to his relatives or their close friends,were not enough to sack Bansal. The Adarsh Housing Society scam originally surfaced in 2003 as a news story of building regulation violations and allotment of flats to non-Kargil war heroes. The allotment of multiple flats to politicians, bureaucrats and their relatives had been approved by the Maharashtra government unmindful about about conflict of interest issues. Incidentally, the biggest controversies around Pawar are those arising from a conflict of inter-
est. Take the 2010 IPL controversy when the Pune-based construction firm City Corporation with 16.22 percent stakes from the Sharad Pawar family made an unsuccessful bid for an IPL franchisee. Although documents revealed that City Corporations managing director Aniruddha Deshpande had made a Rs1,200 crore bid for an IPL team on behalf of the company, the Pawars and Deshpande later claimed that the bids were made in Deshpandes personal capacity and were not authorized by the company. Pawar has had to do a lot of explaining over the Lavasa Lake City controversy where this mega housing project in Pune district had questionable links with his daughter and son-in-law and people known to be a part of his inner circle. While explaining his point of view, Pawar has never cared for the principle of conflict of interest and glossed over the issue by saying that he and his family members have a legitimate right to participate in a legitimate business activity. One of the positive fallouts of the IPL scam is the attention it has focused on issues of bad governance and conflict of interest issues in India. It has forced India to come face to face with how thick-skinned we are on matters of conflict of interest.
- Rhiti MSD Alamode Private Limited - Rhiti Media Private Limited - Rhiti Infrastructure Private Limited - Rhiti Venture Private Limited - Rhiti MSD-N Motorsport India Private Limited - Rhiti Charitable Foundation - KSS Rhiti Infrastructure Private Limited - Rhiti Vishwamedia Private Limited - Sportsfit World Overseas Private Limited And all this has happened between 19 April 2012 and 26 March 2013 a phenomenal rise for Pandey, a former Ranji Trophy player from Uttar Pradesh who lived the life of a nobody until he snapped up Dhoni as a client in his sports management firm. Also, you cannot help but one name pop out of everywhere Rhiti. Those days he used to get Rs 2.5 crore to Rs 3 crore per brand. Now he gets Rs 10 crore The total then was Rs 40 crore. Now more than Rs 100 crore, Pandey was quoted as saying once in media reports. Journalists know for a fact that Dhoni places an incredible amount of trust in Pandey, and all his deals go through him. However, how deep does this relationship run? Click here for the full Economic Times report.
An Economic Times report lists Arun Pandey as additional director or director in the following companies. - Kaimur Minerals Private Limited - Rhiti Entertainment Private Limited - Rhiti Sports Management Private Limited - Rhiti Talent Management Private Limited
first-class cricket used to come to Delhi to play Hot-Weather tournaments and often stayed at Pandeys place. Once Dhoni became a megastar in Indian cricket, Pandey reaped the dividends in the reflected glory of the Indian captain. So much so, that he even appeared in a television commercial for a cement brand along with Dhoni and RP Singh. When Pandey reportedly signed Dhoni for a whopping amount for his company Rhiti Sports, it instantly grabbed eyeballs as no one knew what Pandeys locus standi was in terms of managing players and their finances. RP Singh might have severed professional ties with Rhiti now, but those who covered the Ranji Trophy match between Uttar Pradesh and Railways at Mohan Meakin ground in Ghaziabad in 2011, saw Pandey come with a huge birthday cake at the end of the days play. The cake was cut at players makeshift dining area and it was supposed to be exclusively for the players and officials. No one questioned about what an outsider was doing there as the match was still on. Pandeys claim to fame in cricketing circles, courtesy Dhoni, has come fast but the skipper now faces some uncomfortable questions since the suspicions of conflict of interest has cropped up.
acer Rudra Pratap Singh on Monday denied being managed by Rhiti Sports, the firm in which Indian cricket captain Mahendra Singh Dhoni has a 15 per cent stake, raising questions of a possible conflict of interest.
the report claimed, manages R P Singh, Suresh Raina, Ravindra Jadeja and Pragyan Ojha. Interestingly, all these four players are part of the same IPL franchise, the Chennai Super Kings, which is also captained by Dhoni. Dont know what exactly is running in the news but just to clarify I am not with Rhiti Sports, tweeted RP Singh after the report came out. R P Singh has played 14 Tests and 58 ODIs for India. He has taken 40 wickets in the longer format and has 69 scalps in the one-dayers. He has been out of favour for some time and has not played a Test or ODI since 2011. Rhiti Sports is owned by Arun Pandey, a close friend of Dhoni. In 2010, Dhoni signed up with Rhiti reportedly for Rs.210 crore, an average of Rs.70 crore a year, the costliest deal in Indian cricket.
A newspaper on Monday reported that Dhoni has a 15 per cent stake in the company, which,
he sports management firm that manages Mahendra Singh Dhoni today clarified that the India skipper holds no stake in the company, putting to rest speculations about a possible conflict of interest. It was reported in the media that Dhoni has a 15 per cent stake in Rhiti Sports which also manages Suresh Raina, Ravindra Jadeja and Pragyan Ojha, besides the Indian captain.
for more than one year. Further, the payments were cleared in April 2013 and the shareholding was transferred back to the promoter of the company on 26.04.2013, Rhiti Sports chairman Arun Pandey said in a statement. In 2010, Dhoni signed up with Rhiti Sports reportedly for Rs 210 crore, an average of Rs 70 crore a year, the costliest deal in Indian cricket. We at Rhiti Sports Management Pvt Ltd are greatly aggrieved at the widespread media reports regarding alleged conflict of interest of MSD. Though not obligated to but in order to put at rest these widespread speculations, we are issuing the following statement to bring in knowledge the correct factual matrix. It is made clear that the Management of Rhiti Sports Management (P) Ltd understands its obligations to the field of sport and the country and adheres to the laws of the land, he added in the statement.
However, the firm made it clear that Dhoni was a shareholder only for a brief period, and currently has no stake: As on date, MSD holds no shareholding in Rhiti Sports Management (P) Ltd. However, it is made clear that shareholding was allotted to MSD on 22.03.2013 only to secure certain old outstandings which were due
Interestingly, two of these players Raina and Jadeja are part of the same IPL franchise, the Chennai Super Kings, which is also captained by Dhoni. Ojha had joined Rhiti Sports during Australias last tour of India.
here is an old-world charm to the narrative that today binds cricketing star Mahendra Singh Dhoni to Arun Pandey, the man whose sports management firm Rhiti Sports is in the spotlight following reports of a too-close-for-comfort relationship with Dhoni.
Evidently, in early 2010, when the sports management contract to manage Brand Dhoni was due to expire, some of the biggest names in the business, some of them with pedigree lineage, lined up for Dhonis custom. These included World Sports Group, IMG, Percept Group, PMG Sports (promoted by Sunil Gavaskar), Purple People and Planman Consulting. All of them made heavy-duty powerpoint presentations to Dhoni, and doubtless promised big-money endorsements to the then newly-wed Dhoni, who already had claimed the status of Indias most valuable sportsman. But having heard them out, Dhoni in the end plumped for Rhiti Sports, a low-profile company owned by Pandey, based on the relation-
Indian team (whose administration vests in the hands of Srinivasan), he was also gainfully employed in India Cements, the company that Srinivasan owns. India Cements, in turn, owns Chennai Super Kings, the IPL franchise that Dhoni captained. And, as the latest revelations show, he briefly had a stakeholder interest, along with Pandey, in the sports management firm that also managed others who play for the Indian and the IPL teams whose cricketing fortunes were decided by Dhoni as captain for both the Indian and the IPL teams! True, Rhiti Sports has put out a clarification claiming that Dhoni was allotted 30,000 shares in Rhiti Sports for just a little over a month in lieu of a Rs 3 lakh payment that was due to him. But the whole explanation only raises more questions that suggest that an artless attempt to cover the tracks is under way. As this report points out, it beggars belief that a Rs 63.5 crore company that had liquid assets of Rs 42.5 lakh couldnt rustle up Rs 3 lakh to pay Dhoni and instead allotted him 30,000 shares evidently as collateral. The whole transaction was reversed a month later, but everything from the valuation of the shares to the atmospherics of the deal give sufficient cause to surmise that its all not quite cricket. In any case, as has been established, Dhonis business links with Pandey go beyond just Rhiti Sports. Dhoni and his wife Sakshi are shareholders, along with Pandey, in at least three
other companies Rhiti MSD Alamode Pvt Ltd (which manages Brand Dhoni), Sportsfit World Overseas Pvt Ltd (which manages gyms) and Rhiti MSD-N Sports India Pvt Ltd, which promites motorcycle racing. The filings in respect of these companies point to an overlap of interests between Dhonis role as cricketing captain and his interest in advancing his business, which is the classic definition of conflict of interest. There is nothing whatsoever to suggest that Dhoni doesnt give every drop of his blood, sweat, toil and tears every time he steps out on the playing green. Indeed, on countless occasions, he has played beyond himself and except for a particularly bad patch last year has proved a phenomenally successful captain. No fair-minded person will, therefore, grudge Dhoni his megabucks endorsement fees. He has thoroughly deserved them. But in allowing his business interests to interfere in his cricketing world, in a manner that opens him up to the charge that he put himself in a blatant conflict-of-interest situation, Dhoni has fallen from the stately pedestal on which his cricket fans have put him. Its true, of course, that compared to the egregious levels of corruption we see in every sphere of public life, this probably seems like a minuscule impropriety. But its tragic every time a hero trades enduring fame for tainted fortune.
its conduct, and a Board president who has an intricate web of conflicting interests besides a son-in-law who allegedly likes to make some money on the side by betting on the same game that his father-in-law and captain-friend are managing. Its bizarre that this is the same game that people are crazy about. Thirteen years ago, when some of the big names of Indian cricket were involved in a match fixing scandal and many cricketing greats were seen washing dirty linen on spy-cam, we were shocked. The dirty deals, the dubious links of some super-stars and the amounts of money discussed were disgusting; still we went back to cricket because we were told that a few rotten eggs dont besmirch a glorious game. We were also made to believe again and again that cricket was a national game and the cricketers were upholding the prestige of India. That made us follow Dhoni and company as demigods because we believed that they were our national property. The national and state governments also treated them like heroes giving them tax breaks and massive cash awards. But whenever there is a crisis, like the one unfolding over the last three weeks, and we ask questions on accountability, they turn around and say that they are not accountable to us or even the government because they are managed by BCCI, which is a private body. Even as it operates on countless government concessions and public trust, BCCI is totally impervious to our simple questions on governCopyright 2012 Firstpost
The developments also make them realise that it is a profit-driven private enterprise run by a highly exclusive club of private interests that effectively feeds off millions of Indians, many of who probably go to bed hungry. Its muscle and might come from the blind following of these millions, including the 400-odd million who make up billion-dollar TV rights, and their sheer loyalty to everything that the cricketers do and say. In return, they get matches in which bowlers sell an over for Rs 40-60 lakhs to underworld criminals; a captain who can have multiple business interests that directly conflict with the basic ethics of the game and the principles of
ance and probity because it is not a government body. They dont care even if the sports minister asks them questions. That is precisely why MS Dhoni will get away with his alleged promotion of a few team-mates, and the BCCI with its unquestionable ways, while similar allegations against minister Shashi Tharoor had cost him his job. Therefore, if the BCCI says that it is a private entity, and cricketers, both past and present, take cover behind its privateness, lets also consider it as a private entity which is driven by money. Its time we redeemed ourselves from this private enterprise of vested interests, which is replete with self-breeding conflicts, called Indian cricket. The method for this redemption is de-nationalisation. It may sound ironical how a private enterprise can be de-nationalised. The answer is: if we cannot nationalise Indian cricket, lets denationalise it because it has been masquerading as a national institution to merely exploit its attendant privileges. Here are seven simple steps for de-nationalising Indian cricket 1. The Indian cricket team should be prevented from commercially exploiting the title India and the national flag. 2. Immediately recover the few hundred crore rupees that the BCCI owes the Income Tax department. According to this Indian Express report, it owed Rs 373 crore for 2009-2011 alone. The department expects the figures to multiply several times once the assessment for the period of 2010-11 and 2011-12 are finalized, the report said. In the past, BCCI enjoyed IT exemption owing to its charitable veneer. 3. Revoke the Rs 45 crore tax concession given to ICC for the 2011 World Cup. Dont give any more concessions and exemptions to ICC or any
other national or international cricketing body. 4. Revoke all the concessions on the real estate stadiums, office space etc and exemptions of local taxes, if any, enjoyed by the state cricket associations that are affiliated to the BCCI. Charge a premium for police, security and traffic arrangements. 5. Immediately take action on the recommendations of the Parliamentary Standing Committee of Finance (38th Report) on issues such as: violation of tax laws, service tax evasion, violation of FEMA provisions, violation of companies act etc and bring to book those found guilty. 6. Declare IPL as entertainment and tax accordingly. 7. Make the findings of the Standing Public Committee on BCCI/IPL public. In the following paragraph taken from the Standing Committee report, BCCI president Srinivasan appears embarrassingly apologetic when he speaks of Lalit Modi: We were taken for a ride. I know we cannot plead before you that we did not know all this was happening. Your question would be, were you not vigilant; what did you do? I am sorry, Sir, unfortunately, there was too much of power given to him. Sir, answer to one question, was he above the IPL at that time? The powers given to him were like that and that is how he acted. It is no defense for me to say that some of us objected to it. What defense? No defense in front of you. So, I am not pleading that at all. We just put our heads down. But when it comes to his own turf, he gets defiant and self-righteous while the vice president of his company and the captain of Indian team smirks at the media. Indian cricket in the present form is not worth our time and money.
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