Olympics 2012: IOC inquiry into olympic tickets sales on the black market claims

Jun 17, 2012

The International Olympic Committee (IOC) has begun an investigation into claims Olympics representatives were willing to sell thousands of tickets for the London Games on the black market.

The IOC’s ruling executive board met after fresh claims by the Sunday Times involving more than 50 countries.

This included allegations that tickets for top events were available for up to 10 times their face value.

The IOC has referred the allegations to its independent ethics commission.

The Sunday Times submitted a dossier of evidence detailing claims that Olympic officials and agents had been caught selling thousands of tickets on the black market for up to 10 times their face value.

IOC has begun an investigation into claims Olympics representatives were willing to sell thousands of tickets for the London Games on the black market

The IOC could also review how Olympic tickets are distributed among member countries – more than one million were distributed to those taking part in the Games.

The Sunday Times alleges, during a two-month investigation in which reporters posed as Middle Eastern ticket touts, it found corruption involving people representing 54 separate countries.

More than one million London 2012 tickets were distributed abroad among all the nations taking part in the Games, but the IOC has strict rules to try to combat touts.

National Olympic committees must ensure that their allocation is only sold within their own region.

Last month a senior Ukrainian Olympic official resigned after being filmed by the BBC offering tickets for cash.

The IOC said in a statement: “The International Olympic Committee (IOC) has moved quickly to deal with allegations that some National Olympic Committees (NOC) and Authorized Ticket Resellers (ATR) have broken rules relating to the sale of Olympic tickets.

“The IOC takes these allegations very seriously and has immediately taken the first steps to investigate.

“Should any irregularities be proven, the organization will deal with those involved in an appropriate manner.

“The NOCs are autonomous organizations, but if any of the cases are confirmed the IOC will not hesitate to impose the strongest sanctions.

“The IOC has also determined that it will take on board any recommendations coming out of the inquiry to improve the way that tickets are allocated and sold internationally in the future.”

London 2012 organizing committee LOCOG said it would support the IOC in its investigation “in any way we can”.

“Rules and regulations for selling London 2012 tickets to international fans are clear and unambiguous,” it said.

No tickets intended for the British market were involved, it added.

Adidas finds “commercial irregularities” at its Reebok unit in India

Business

Apr 30, 2012

Sportswear giant Adidas has reported “commercial irregularities” at its Reebok unit in India that could cost the firm up to 125 million Euros ($165 million).

Adidas said it is carrying out an internal investigation. “We will take further steps” when that process has been completed, a spokeswoman said.

The firm said the irregularities resulted in a change of leadership at its India business in March this year.

Two top executives at the Adidas Group in India left the company in March.

At the time the executives left, the Times of India said it had learned that the departures were linked to “swirling allegations of financial discrepancies and losses” at Reebok in India.

Adidas has reported "commercial irregularities" at its Reebok unit in India that could cost the firm up to 125 million Euros

While the company did not provide more information about the investigation into its Reebok business in India, it highlighted that there has been a management overhaul.

In the statement accompanying its first-quarter results, Adidas said: “Management assures its stakeholders that it has, and will continue to, vigorously pursue a course of action to protect the group’s interests, which has already resulted in the appointment of a new local leadership team in India at the end of March.”

“Under this new leadership team, management is further planning an accelerated restructuring of its business activities in India, including significant changes to its commercial business practices.”

“This could lead to additional one-time charges in the remaining quarters of 2012 in an estimated amount of up to 70 million Euros.”

At the same time, the firm said first-quarter net income increased.

Adidas’ profit was 289 million Euros in the quarter, up 38% from the previous year, and it also raised its annual sales target. It now expects sales to rise 10% this year.