THE SPORTS ACADEMY RETREAT

Dec 04, 2013 Features / Columnists, Peeping Tom

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The figure of US$30M seems quite popular these days. It is the same sum that it was said was being invested by a company which signed a MOU with the government for the construction of a recycling plant.
That MOU was eventually withdrawn after Kaieteur News did its own due diligence on the investors. Now the figure of US$30M has reappeared again, this time in relation to a proposed sports academy that was to be established at the Georgetown Cricket Club and the Georgetown Football Club, two clubs that adjoin each other in the heart of Georgetown.
After Kaieteur News broke the news about the offer that was being made to the GCC and the GFC, the investor pulled out of the deal claiming there was a breach of confidentiality. This is also a word that is being used very often whenever there are attempts to frustrate the release of information. The publishers of the Oxford Dictionary may soon have to redefine this word confidential, because it is taking on a completely new meaning in Guyana.
The withdrawal of the proposal for the sports academy on the grounds of a breach of confidentiality is a very strange explanation, because if I were investing US$30M in a socially desirable project such as a sports academy, I would want the entire country to know, because then I would have the backing of the entire country and be able to repel any opposition to this investment.
It was therefore surprising that the offer to build the sports academy has been withdrawn, very surprising. Why would anyone be upset by the disclosure of such a good, good, good deed that was being done for sports in Guyana?
If it were my company, I would want it announced on CNN, because I do not believe that there is any sports academy in the world that attracted a thirty million US dollar investment.
Even the highly fancied football academy in Barcelona has not attracted that level of investment. This academy is one of the most expensive in Europe, but  its recurrent costs of around five million Pounds per year pales in comparison to the overall investment of US$30M that was supposed to be in store for the GCC and GFC.
Of course, it can be argued that what was proposed for GCC and the GFC was not just academy facilities. Training facilities do not cost a fortune and a sports academy can operate out of any makeshift bond. The real investment, therefore, was most likely going to be made to the facilities at both grounds so that, it is said, they could host matches in the Limacol T20 competition.
But why spend such a prohibitive sum when Guyana will only get about four matches the most each year? Why build another stadium in Demerara when there is already one at Providence? Why not Albion? And why should the new facility cost such a prohibitive sum?
Six billion dollars is a huge sum of money. Why would you want to invest that in a country that already has a national stadium that has facilities and spectator facilities that are underutilized, year in year out?
The government of India lent the Guyana government about US$25M to construct the National Stadium at Providence. The government also injected some of its own funds, but the overall tab was not likely to have exceeded US$30M, and the National Stadium is quite an impressive structure.
It makes no economic sense to invest in another stadium. It makes little business sense to invest US$30M in a sports academy or even a sports complex inclusive of an academy. Where will the returns come from to repay this investment and generate a profit that would then be shared with the GCC and the GFC?
Certainly hosting a few cricket matches each year in the Caribbean Premier League will not compensate for this level of investment?  Would it clearly not be cheaper to simply rent the National Stadium for use of the academy and to also host the franchised regional T 20 matches?
There is something that is not adding up about this proposal, which becomes all the more queer when one considers the haste with which the investor retreated from the deal. The investor backpedalled quickly after Kaieteur News publicized the plans.
It is difficult to contemplate why anyone would be upset at the publicizing of plans to make such a major investment. This is the type of decision that could do wonders for the image of the company making the investment and therefore it is something of a shock that a simple Kaieteur News report could force such a hasty retreat. Which makes one wonder all the while about this proposal?
The officials of the GCC and GFC are yet to issue a public statement on the matter. As members’ clubs they surely cannot and should not claim confidentiality for not explaining whether those undertaking the negotiations had a mandate from their membership to enter into any negotiations with the investor.
I trust that given the sum to be invested, the GCC and GFC’s loss will be someone else’s gain. Perhaps the investor can look at Albion Sports Club. That is a large facility with enough space for an academy and an international size cricket ground for hosting international matches. And it can do with a US$30M upgrade.
By the way, where was the money for the proposed investment coming from?

 

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