NEW DELHI:
The Board of Control for Cricket in India (BCCI) has reconciled itself into paying a hefty amount to the now defunct Indian Premier League (IPL) franchise, Kochi Tuskers Kerala, as part of the compensation package for terminating the franchise’s contract in 2011.
The owners of the Kochi-based franchise had won an arbitration case in 2015 after having successfully challenged the BCCI’s decision to encash the bank guarantee citing breach of contractual agreement. The RC Lahoti headed panel, which heard the case, had brushed aside BCCI’s actions and had ordered the premier cricket body to pay up Rs 550 crores as compensation along with 18 percent annual penalty if it failed to do so.
The BCCI remained unfazed since the order and took no interest in compensating the franchise nor made any effort in getting the franchise back into the IPL. Some of the BCCI members were of the opinion that the order could be challenged, but after having exhausted all legal options, the apex cricket body is now left with no choice but to pay up.
“We have to pay Kochi compensation. All legal options have been exhausted. Normally when arbitration decision goes against you, it will be stupid to move Supreme Court appealing against it. We have no option, but the question is how much,” an influential IPL GC member said.
Having won the arbitration way back in 2015, an emboldened Kochi Tuskers management have now asked for a whopping Rs. 850 crores in compensation and IPL chairman, Rajiv Shukla, said the final call regarding the payment of the dues will be taken by the concerned authorities. “Kochi Tuskers has demanded Rs. 850 crore as compensation. Today we discussed the matter at IPL GC meeting and we will now place the matter before general body. Let them take a call but obviously some negotiations are needed,” he said.
The decision to sack the Kochi-based franchise was taken by the then erstwhile BCCI President, Shashank Manohar, despite majority stakeholders of the BCCI apparently against any such moves. Privately seething against Manohar, the unnamed official said that they are now paying for one man’s arrogance.
“It was one man’s obstinacy that is now costing us a bomb. Had Shashank not taken that decision, we could have worked our way out. In fact, before Kochi went to arbitration, they had asked for a compensation of Rs 300 crore. Even then our officials showed arrogance and now we will be forced to shell out more than double,” the official further added.
Even as BCCI gets ready to shell out the amount, the official is convinced that the Board can negotiate with the franchise and agree to an acceptable number. “Even then we will not be able to bring down to less than Rs 600 crore, I feel,” said the official, who had been associated with the case.
Meanwhile, the BCCI will receive a small token amount of rupees five lakhs from Chennai Super Kings (CSK) as part of 5 percent earnings from total valuation of a franchise that transfers its ownership, which in this case was worth rupees one crore. As per IPL rules, in the circumstance of any franchise transferring its ownership, it will have to pay five percent of its total valuation to the BCCI.
This rule came into effect after N Srinivasan’s India Cements transferred its shares to the newly formed Chennai Super Kings Company Limited (CSKCL). “This is bizarre but true. We will get Rs 5 lakh but we are trying to take legal opinion,” the official said.
