WICB Responds to C&W
Mon, Mar 14, '05
The following is the text of a WICB statement responding to
several eye-opening assertions from Cable & Wireless
regarding the sponsorship negotiations:
Over the last week, Cable and Wireless has issued a number of statements relative to issues involving seven West Indies Players, Cable and Wireless itself, and the West Indies Cricket Board.
After careful consideration of those statements, the West Indies Cricket Board (WICB) would like to make the following points:
In reference to Cable and Wireless?s claim that that the company never refused to match the Digicel sponsorship package with the WICB because it was never offered, the WICB, by letter dated 2 March, 2004, presented to Cable and Wireless the details of a rival sponsorship bid totalling US $23 million dollars over five years. This was in keeping with the terms of the Agreement between the Board and Cable and Wireless. In all material aspects this was the same agreement that was signed between the Board and Digicel.
In a letter dated 16 March 2004 addressed to Mr Roger Brathwaite, Chief Executive Officer of the WICB and signed by Mr Usman Saadat Vice President ? Marketing, Cable and Wireless, Eastern Caribbean, the company stated:
?In accordance with Cable and Wireless?s (?C&W?) obligation under clause 14.2 of the Agreement with the WICB to respond to any rival bid within 14 days of notification of the same by you, C&W has decided not to match the rival bid.?
2. The WICB would like to clarify the issue further by presenting a time line of events as follows:
The initial proposal put to Cable and Wireless by the WICB in August 2003 reflected a five-year sponsorship of the team on a Home and Away basis at a cost of US $30 million. Cable and Wireless stated quite clearly that it was not interested in being a sponsor of the West Indies team away from home. The discussions then centred only on the Home Series and team sponsorship during those series on a three-year renewal basis.
In September 2003, WICB and Cable and Wireless reached agreement on terms of a new 3-year sponsorship totalling US $10.95 million, subject to contract and subject to the approval of the Directors of the WICB.
In November 2003 Cable and Wireless produced a draft contract, which was rejected by WICB since conditions and provisions not discussed nor agreed during negotiations had been included. The WICB on 5 December 2003, wrote to Cable and Wireless and advised it was invoking Clause 14.2 of the Agreement with respect to going to the market as there appeared to be a difference of opinion on the value of the sponsorship. Following that letter these conditions and provisions were withdrawn by Cable and Wireless during a meeting later in December 2003 but the WICB made it clear to Cable and Wireless that it would continue with the process of going to the market with Cable and Wireless retaining the right to match competing bids.
After having withdrawn from the process as indicated in its letter of 16 March, Cable and Wireless subsequently presented a verbal request to the WICB to amend its last offer of US $10.95 million. However it was pointed out to Cable and Wireless that discussions with representatives of the rival bidder were well advanced and were being conducted in good faith. The Board considered it inappropriate to re-open negotiations with Cable and Wireless.
3. With respect to the submission of the individual endorsement contracts, contrary to what was implied by the company?s statements of 5 March and 12 March, prior to last Friday 11 March, 2005, Cable and Wireless had at no time submitted to the West Indies Cricket Board nor its President any of the contracts signed by the seven players with whom the company has entered into personal endorsements.
Cable and Wireless sent to the President on 21 May, 2004, a document, which it referred to as a template contract, without signature or dates. The Board was advised by legal counsel that it would be unsafe to rely on such a specimen document.
The WICB, therefore has never been in a position, prior to 11 March, 2005 to say whether the contracts ultimately entered into by Cable and Wireless and the players bore any resemblance to this document. The Board is now in receipt of the contracts and its legal counsel is reviewing them.
Those are the facts and the WICB?s interest is in setting the record straight.