SMAM makes a public appeal
According to official sources, "SMAM and Michael Bushell refute in the strongest possible terms allegations and innuendos of any impropriety related to SMAM and Michael Bushell owned company shareholdings. SMAM and EKS are two separate, independent entities and operate in different areas of business. Neither SMAM nor EKS (nor any persons involved with either entity) were involved with the companies' appointment of the other for the Delhi 2010 Commonwealth Games (or any Commonwealth Games)."
Adgully has got the copy of the official statement made by SMAM about the companies shareholdings which highlights few key points:
Company Shareholdings
Sports Marketing & Management Pte Ltd. is a privately held company registered in Singapore. 100% shares of Sports Marketing & Management Pte Ltd. are held by Sports Marketing & Management Pty Ltd. Australia. Voting rights of Sports Marketing & Management Pte Ltd. are entirely controlled by Sports Marketing & Management Pty Ltd.
Sports Marketing & Management Pty Ltd is a privately held company registered in Australia. 100% shares in Sports Marketing & Management Pty Ltd are beneficially held by Michael Bushell and the voting rights of the firm are entirely controlled by him.
Craig McLatchey holds no business interests or voting or controlling rights in Sports Marketing and Management Pty Ltd. or in any other company owned by Michael Bushell.
Ithaca Pty Ltd, in its capacity as trustee of the McLatchey Family Trust, holds one "F" class share in Eris Pty Ltd, a private investment company of the Bushell family. Eris Pty Ltd owns 24% of Sports Marketing and Management Pty Ltd (the remaining 76% is owned by Michael Bushell).
This "F" class share has no voting rights, no capital rights and no fixed dividend entitlements. Dividends have never been declared in respect of "F" class shares and are not anticipated to be declared in the future. The purpose of this F class share is merely to allow the holder to help facilitate the on-going support for the Bushell children in the unlikely and unfortunate event of simultaneous death of Michael Bushell and his wife.
It should be noted that Craig McLatchey has been a personal friend of Michael Bushell and his family for over 25 years.
The official statement also highlights a very important point regarding the remuneration
Remuneration
SMAM's remuneration, as per the contract, is totally linked to performance. Despite having generated record sponsorship revenues and provided a wide range of services, to date, SMAM has not received any payment from the OC for the work done on Delhi 2010, since our appointment began in 2007. Since the beginning of our appointment, we have solely funded all our operations, in India and internationally, without any payment from the OC whatsoever. The OC has not had to incur any risks or costs related to the services we have provided.
The reports doing the rounds were that there is an international conspiracy in the awarding contracts for the Delhi Games is nothing but false and a gross misinterpretation of the facts.