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MUMBAI:
Billionaire Mukesh Ambani's appetite for sports business is
not restricted to owning an IPL franchise. Ambani-controlled
Reliance Industries Limited (RIL), India's largest private-sector
company by market value, has set up an equal joint venture
with sports-marketing giant IMG to develop, market and manage
sports and entertainment in India.
The venture, IMG Reliance, will have parallel complementary
strategies: to create and operate sports and entertainment
assets; and to provide and operate world class infrastructure
and coaching facilities to unlock India's sporting potential.
The
senior management teams of the two organisations, led by their
respective Chairmen Ambani and Ted Forstmann, have formulated
clear ambitions and strategies for the joint venture company.
IMG Reliance will harness IMG's international expertise gained
in over 50 years in the business of sport, entertainment and
celebrity management with RIL's expertise in the domestic
market, strategic planning and execution. The JV does not
include the Indian Premier League (IPL).
For IMG, the decision to pair with RIL follows its earlier
expansion drives into China. In 2008, IMG inked an exclusive
20-year deal with China's national television broadcaster
for developing and marketing new sports events there.
The
immediate initiatives are:
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Under the auspices of The Reliance Foundation, the recently
formed corporate social responsibility initiative of Reliance
Industries, state of the art sporting academies will be developed
to provide world class coaching and training facilities for
Indian sportsmen and sportswomen. The required infrastructure
investment will be provided by The Reliance Foundation. IMG
owns IMG Academies (IMGA) in Bradenton, Florida, the world's
leading sporting and educational institution which has many
alumni who have pursued successful professional sporting careers
on the world stage. IMGA will provide management knowledge
and coaching skills transfer to the management and coaching
teams of the Academies in India which will be managed by the
joint venture.
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In parallel to the development of the Academies in India,
a scholarship programme will be initiated which will identify
talented Indian athletes who will be provided with full sporting
and academic scholarships to IMGA in Florida. Additionally,
a fully funded programme to develop Indian coaching potential
will be initiated in preparation for the opening of the Academy
in India once construction is completed.
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The joint venture will develop new sports and entertainment
assets in India modeled on the sporting, commercial and investment
structures of such assets in mature sports and entertainment
market places.
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Plans are underway to create India's first Super Agency which
will offer 360 degree management to celebrities from the worlds
of sport, Bollywood, fashion and which will develop, own and
operate assets in these sectors.
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Management of IMG's existing business and assets in India
including the Aircel Chennai Open - India's Association of
Tennis Professionals (ATP) World Tour event and Lakme Fashion
Week (India's premier lifestyle and fashion event) will be
transferred to the joint venture.
IMG's responsibilities to the BCCI for IPL will not transfer
to the joint venture and will continue to be managed by IMG's
international business and executive team.
Said
Ambani, "Development of sports and the sporting culture
is a social imperative for India in the 21st Century. World-class
infrastructure, frugal engineering, technology and scientific
coaching are an integral part of development of today's sporting
talent globally. IMG has an enviable track record of leveraging
these aspects and identifying, training and developing champion
talent across disciplines. With IMG's five decade experience,
we are embarking on an exciting journey to transform the sporting
fabric in the country. Our JV company will actively work with
like minded organisations and invest in developing immensely
talented young Indians."
IMG
chairman and CEO Ted Forstmann said, "IMG is delighted
to be joining forces with RIL, the most important company
in India. The performance of Indian athletes on the national
and international stage will improve dramatically with the
correct development strategies. This is what IMG has been
doing for 50 years, both at IMG Academies in Florida and many
other places around the world. As a consequence, the commercial
performance of sport and entertainment in India will be enhanced.
IMG firmly believes that in order to build valuable commercial
sports, entertainment and media assets it is at first essential
to address infrastructural, coaching and accessibility challenges.
This joint venture will address these challenges and in time,
we anticipate, benefit from the commercial growth that follows."
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