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on Thu Feb 10, 2011 1:35 am by
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on Thu Feb 10, 2011 5:25 am by
I received the announcement of Chess Promotions that you are withdrawing your offer to organize the FIDE World Championship match (FWCM) with great disappointment. I would like to provide the chess world with the correct facts which caused this move.
On February 2010 FIDE granted you the option to organize the FWCM "under the same conditions like the Sofia match between Anand and Topalov". On 15 February you signed a memorandum accepting the conditions and regulations of the match and two days later paid a deposit of 50,000 Euro for such option.
After that, for a long period, you have been proposing several changes from the Sofia contract. In July 2010 (after the original deadline was extended by FIDE) you sent to FIDE a different version of the contract with different conditions. For most among this were important financial conditions which had to be clarified first. In a constructive manner FIDE, wishing to hold the match in London, accepted several conditions interalia reducing the prize fund by 20% due to UK taxes not covered by the organisers, reduction of the contribution to FIDE, reduction of the number of principals. In January we met in London when I proposed to discuss the agreement based on the Sofia contract as amended above.
In our meeting both you and Mr. Andrew Finan replied that you only consider the version dictated by you, claiming that they are no substantial differences between the two contracts. You made it very clear, as you recall, that the sponsor of the match "lost interest" in it after the withdrawl of GM Magnus Carlsen and consequently instructed you "not to negotiate at all about anything" i.e. "take it or leave it".
Even after the meeting in London I was trying to solve the problems and I informed FIDE about the situation. The FIDE Secretariat then gave me a list of 36 differences between our version and your proposed contract and 16 changes from your original July draft. Many of which were completely unacceptable to FIDE, interalia FIDE being responsible of player’s taxes in their respective jurisdictions, no liability for any cancellation for any reason and putting FIDE as responsible for several obligations which were and are not in FIDE`s hands.
Moreover, in your contract you change the regulations of the match. Furthermore you have informed us only on 27 January that the players may be liable up to 50% tax. This means that the net prize fund could be as little as near 1.2 million EUR after tax where as our agreement was that you will provide, as in Sofia, a prize fund of 2.0 million EUR after tax. Therefore your statement that the conditions were equal to Sofia was incorrect.
In order to try and solve the problems I asked for an extension of the signing date until the Presidential Bord meeting in early February. You were also invited by the FIDE President to come to Antalya so that we could try to reach an agreement. Unfortunately this proposal was rejected and you announced the withdrawl of your offer.
It is clear, and was obvious to me and expressed specifically by you, that the withdrawl of GM Carlsen from the WC cycle meant that the sponsor was no longer interested in sponsoring the match.
I regret that the FIDE World Championship Match, despite all our efforts, will not be organized in London in 2012.
FIDE Vice President
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on Fri Feb 11, 2011 1:37 am by
Re: FIDE World Chess Championship London 2012
Chess Promotions Ltd has been in discussions with FIDE since February 2010 regarding the staging of the WCC in London. A € 50,000 deposit was paid to FIDE to secure an option on the WCC 2012 match as negotiations commenced and finance was sought.
Having secured the necessary funds, on July 21st 2010, CPL sent FIDE a formal offer and a detailed commercial contract to stage the next WCC match in London with financial terms similar to the 2010 WCC match at Sofia.
Unfortunately agreement could not be reached in the autumn. Following more discussions in London in January, CPL asked FIDE to accept the offer by Saturday 29th January 2011. No such acceptance was forthcoming. Therefore, with regret, CPL has withdrawn its offer in time for the next Executive Board meeting which starts today in Turkey in order to give the EB clarity and the opportunity to consider alternatives. The timeline to stage a WCC match before the Olympic Games in May 2012 is now too short.
CPL will continue to stage top class events in London. Dates for the 3rd London Chess Classic will be announced shortly. We have registered our interest with FIDE in staging events such as the World Rapid Championship and World Blitz Championship in London and will continue to work on bringing commercial sponsorship to chess in order to benefit our associated charity Chess in Schools and Communities.
CEO Chess Promotions Ltd.
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on Sat Feb 12, 2011 6:13 am by