OREANDA-NEWS. On September 15, 2008 The Management Board of OJSC MMC Norilsk Nickel (“MMC Norilsk Nickel” or “the Company”) reviewed the current situation with administration of the sports clubs that belong to the companies of Norilsk Nickel Group, or financed by MMC Norilsk Nickel, reported the press-centre of Norilsk Nickel.

This item was put on the agenda of the Management Board meeting following the clubs’ request to provide additional financing for 2008, and in connection with a letter received from Mikhail Prokhorov on August 29, 2008, where he expressed his intent to divest himself of the powers of the Chairman of the “Sports Projects, LLC” Board of Directors.

Reports to the Management Board were presented by the former General Director of Sports Projects Management LLC Dmitry Glotov, General Managers of PBC CSKA LLC Andrey Vatutin and PHC CSKA LLC Kirill Fastovsky, Executive Director of FC Moscow LLC Andrey Galaida and President of MFC Norilsk Nickel LLC Vladimir Bakulev.

The performance of some sports clubs was assessed as positive, in particular the results of MFC Norilsk Nickel and PBC CSKA. However, the Management Board has noted the shortage of funds required for the financing of sports clubs to the end of 2008, concluding that the main reason of such a shortage lied in the unsatisfactory performance of Sports Projects Management LLC. In this respect, the management has commissioned the Company’s Budget Committee to find sources from which the operation of the sports clubs would be financed to the end of this year. 

In the nearest future the Management Board will also select top officers for Sports Projects LLC from a number of qualified candidates whose experience is sufficient for managing the Company’s Sports unit.

The newly organized management of Sports Projects LLC will be charged with the task to prepare the sports clubs’ budgets for the season of 2008/2009, and to submit proposals on the amount of financing to be included in the Company’s 2009 budget. 

Another issue that the new management of Sports Projects LLC will be instructed to explore involves a potential merger of two football clubs, Moscow and Torpedo.

Reference Information
Sports Projects Management LLC is one of the companies of Norilsk Nickel Group, and it performs the functions of a single executive body in such entities as FC Moscow LLC, PBC CSKA LLC and MFK Norilsk Nickel LLC. MMC Norilsk Nickel finances the activities of PHC CSKA.  Sports Projects Management LLC conducts general financial control in the clubs and coordinates the operation of the Company’s Sports unit.