Why Raghu Iyer’s Appointment as CEO of the Indian Olympic Association is a Positive Step

It seems that there was some controversy around Raghu Iyer’s recent selection to the CEO position at the Indian Olympic Association (IOA). What is worrying, however, is not the real infighting that seems to be developing between many Executive Council (EC) members and its President, PT Usha.

The underlying issue is, to put it frankly, a failure to comprehend the need of a professional attitude in our athletic organizations. Unbeknownst to us, there is a deeper tale that sporadically resurfaces and never appears to be resolved.

It is somewhat erroneous to argue that it is counterintuitive to place businesspeople in positions of power inside a sports organization, particularly if those businessmen are not professionals connected to the sport.

Sports organizations need somebody with strong commercial acumen to come in and assist them overcome the obstacles they currently face, particularly when they are underfunded. A CEO is specifically needed for the following tasks: putting the organization’s strategic plans into action, managing budgets, and having financial management skills; additionally, someone with external experience in maintaining and fostering stakeholder and government relations is needed.

Therefore, it is not the intention of involving businesspeople in positions of authority in these organizations to lessen the spirit of sport; rather, it is to preserve and nurture the spirit of sport while guaranteeing its continued existence in the essentially capitalist conditions in which these organizations operate.

To grasp the larger image that is in front of us, let’s step back.

Let’s start by examining the IOA and its urgent problem at hand. In response to President Usha’s selection of Iyer, 12 out of 15 EC members expressed contempt, claiming that it was made with little warning and a glaring lack of communication on many fronts. There are many reasons for this, including the timeframe they were given, the doubts they have about Iyer because of his prior jobs, and the fact that he is receiving an excessive salary. Additionally, a compensation-focused internal IOA communication was also released on social media.

Particular eligibility requirements were listed in the IOA CEO job advertisement. These included the need for the potential candidate to be a management professional with at least ten years of experience in a CEO capacity and to have a thorough understanding of the governance and structures of international sports.

CEO collaboration is a typical practice for athletic organizations worldwide. The lack of a CEO at IOA was criticized by the International Olympic Committee (IOC) last year, which was akin to a slap on the knuckles from the international organization.

However, the hiring of one, who comes with a large salary package, hasn’t been warmly received by all IOA executive members.

Let’s go right to the point now. Why is it expected that a CEO shouldn’t be compensated generously for a job well done if one expects them to get a sponsorship contract or deals for Rs 100 crore?

For instance, CEOs in the Indian Super League (ISL), which has been operating for ten years, are compensated with a minimum of Rs 1.5 million annually. Similar to this, CEOs and broadcasters in the Kabaddi league both earn six figures, demonstrating how profitable sports other than cricket are becoming.

The CEO of the Indian Cricket Board (BCCI) gets around a million dollars annually.

A career in sports is becoming a viable alternative because of the abundance of professional settings. It’s time to debunk the myth that bureaucrats and politicians are equipped to manage these kinds of organizations.

Employing seasoned specialists who are equipped with the know-how to expand the company into properties valued at billions of dollars is essential.

For example, Iyer held the position of CEO for the Indian Premier League’s Rajasthan Royals, Lucknow Super Giants, and Rising Pune Supergiant (IPL). He was formerly employed by the Ultimate Table Tennis (UTT) team RPSG Mavericks and the ISL club ATK Mohun Bagan.

To be clear, the existing system in the organizations is not just intimidated by the danger of consequences; rather, what gets things started is the possibility of missing out on financial and political advantages.

Furthermore, the IOA is not unique.

The All India Football Federation (AIFF) was in a similar predicament not too long ago. As contentious former president Praful Patel, whose third term in office expired in December 2020, continued to occupy the job claiming a lawsuit that was ongoing in the Supreme Court, things began to go south for the AIFF.

He was granted an extension of his term in the lawsuit, which had been ongoing since 2017, but elections could not be held until the highest court resolved the question of a new constitution. For many years, Patel transgressed all good governance rules while doing so.

Finally, FIFA had to intervene and suspend AIFF for failing to adhere to proper protocol. The AIFF only made amends for their wrongdoings after getting that smack on the wrist.

Such incidents in the nation’s athletic organizations raise another question: why, in the first place, does a sporting organization need the assistance of a CEO, particularly one who may not have competed at a high level in the sport? How can they really comprehend the subtleties of the sport they are supposed to report on?

This brings us to yet another crucial insight and difference that must be made: sporting organizations are ultimately companies.

All of this is meant to emphasize how disheartening it is that the 12 EC members in the IOA are eventually engaging in these activities, as it reveals their opposition to having a qualified CEO lead the organization. Furthermore, it is depressing to see someone stoop to retaliating against PT Usha and the other members, including Mary Kom and Achanta Sharath Kamal, who voted in support of Iyer.

These acts raise even more concerns about what their true motivation may be in this particular situation. However, the unfortunate truth is that sport as a whole is footing the heavy bill, not just the IOA.