The International Management Group (IMG), a key logistics partner in conceptualising, implementing and running the Indian Premier League has asked the Board of Control for Cricket in India to reconsider the decision to terminate its services.
In a letter to BCCI secretary N Srinivasan, Andrew Wildblood, a senior vice-president of IMG, stated that IMG "reserve all of our rights and remedies at law under and in respect of the contract". The letter points out "a number of inaccuracies" in the communication IMG received from BCCI.
A source told HT that Wildblood reiterated that the Board had signed a legally binding contract with IMG on September 13, 2007 and that Srinivasan, in a letter dated August 28, 2009, appeared to be attempting to terminate the contract. Wildblood wrote: "You have not provided any grounds for such termination and the fact is there are no such grounds."
The crux of the problem is money. As per the original contract, IMG was to work on a commission, receiving 10 per cent of what the Board made. The IPL's inaugural season brought in Rs 662 crore, leaving the BCCI (post various pay-outs) a net profit of 15 crore.
Sources say the Board felt Rs 66 crore was too high and renegotiated to Rs 33 crore, or 5 per cent of what the IPL made. In all, including expenses, IMG received Rs 42.92 crore for Season 1.
The Board then suggested that the payment be fixed for the remaining nine seasons, rather than on a commission basis. Although IMG agreed to this and a fee in the Rs. 33 crore range, the Board then wanted further negotiations. Some BCCI members felt that even 33 crore for organising 49 games was too high.
Post the 2009 IPL in South Africa, BCCI president Shashank Manohar and Srinivasan met Wildblood in England in June and asked IMG to submit a fresh proposal. When IMG refused, the Board unilaterally snapped ties.