Can OCM expect a royalty payment from the 2027 SEA Games?

THE next 24 months will be crucial for the Olympic Council of Malaysia (OCM) as the umbrella body bid to complete Phase 1 of their new headquarters in time for the country to host the SEA Games in 2027.

Two weeks ago, it was revealed that OCM had entered a land swap deal with leading property developer Malaysian Resources Corporation Berhad (MRCB) to build what will be called the Olympic House.

The proposed headquarters will be nestled within the mature landscape of Kuala Lumpur Sports City following a landmark agreement between the OCM and the Malaysian Stadium Corporation (PSM), held shortly after the council’s executive council meeting on March 1.

The new headquarters will bring together sports associations and the sports community under the spirit of togetherness, located beside the National Hockey Stadium, and surrounded by the National Stadium, the National Aquatics Centre, the National Sports Council (NSC), the National Sports Institute (NSI) and the Bukit Jalil Sports School.

Inspired by the IOC House in Lausanne, the Olympic House will be perfectly located at the most appropriate location for OCM to operate from, at the entrance of the KL Sports City, serving as a perfect command centre to all facilities, and easily accessible and in proximity to the public transportation network.

Being in the middle of the national sports hub is key to symbolising the role of the 70-year-old umbrella body as the facilitator for the stakeholders in managing sports and elite athletes for all multi-sports Games, including the Olympics Games.

“The new headquarters explores the sustainability and green building practices including energy-efficient systems, adaptive vegetation method, and water conservation measures to meet the sustainability standards,” said OCM president Tan Sri Norza Zakaria to the media following the landmark signing ceremony.

Norza signed the agreement on behalf of the OCM, while PSM was represented by its CEO, Ilyas Jamil. The Youth and Sports Ministry’s secretary general, Datuk K. Nagulendran and OCM deputy president Tan Sri Hamidin Mohd Amin were witnesses to the historic ceremony.

The signing ceremony was conducted following the Cabinet’s decision to approve the sublease of 5.38 acres of land in Bukit Jalil to OCM for the development of the new Olympic House. In return, OCM will be required to pay RM10mil for the 30-year sub-lease agreement with PSM.

Under a separate arrangement between OCM and MRCB, the latter, known for building environmentally efficient buildings that adhere to international standards, will build the new headquarters in Bukit Jalil and in return transform the present Wisma OCM into a financial hub.

When Youth and Sports Minister Hannah Yeoh paid a visit to Wisma OCM two years ago, she was briefed on the history behind the plot of land which was originally awarded to the Council by the Federal Government in September 1978.

The 99-year leasehold expires in August 2077.

The land houses two buildings – the Wisma OCM, completed in 1991 with RM5mil grant from the Government, and the OCM Indoor Sports Complex, declared open by the then Prime Minister, Datuk Seri Abdullah Ahmad Badawi on Dec 4, 2004, with an additional grant of RM3mil from the Government.

Situated on a 0.73 hectare plot, Wisma OCM is surrounded by the Merdeka Stadium, Chin Woo Stadium and the Basketball Stadium in what used to be the nation’s sports hub.

It comprises a hotel with 150 rooms, three-storey car park, offices, meeting rooms and a multi-purpose indoor hall that provide a revenue stream for OCM. It also houses a sports museum and a restaurant operated by the hotel as the anchor tenant.

But with the construction of PNB Merdeka 118 and the presence of six schools around the present location, OCM are looking at erecting a new home to call their jewel in the crown.

Traditionally, OCM have benefited greatly from the successful staging of the SEA Games in Kuala Lumpur. A portion of the profits from the 1989 edition was bankrolled to build Wisma OCM, while the indoor sports complex was constructed shortly after the triumphant 2001 Games.

As the custodian of multi-sports Games in the country, it does make sense for OCM to be compensated for bringing the SEA Games back to Kuala Lumpur after 10 years.

Organising the Games is expected to derive economic benefits for the country and based on previous practices, OCM may be right in asking for a royalty payment.

Perhaps a waive of the sub-lease payment?