MSM deny all charges of impropriety in TV rights deal
MSM Satellite (Singapore) Pte. Ltd. (MSM) has denied alleged irregularities in the IPL broadcast rights deal, especially the facilitation fee of Rs 425 crore paid to WSG Mauritius.cricket Updated: Apr 24, 2010 01:19 IST
MSM Satellite (Singapore) Pte. Ltd. (MSM) has denied alleged irregularities in the IPL broadcast rights deal, especially the facilitation fee of Rs 425 crore paid to WSG Mauritius.
It said that all transactions relating to MSM's acquisition of the broadcast media rights in 2008 as well as 2009, have been undertaken with full knowledge of all parties, in an open and transparent manner and in keeping with applicable laws.
“MSM strongly refutes all unsubstantiated allegations of any impropriety in this matter, as incorrect and inaccurate,” MSM said.
MSM re-emphasised that the 'Facilitation Fee' of Rs 425 crore to WSG Mauritius was for the original option fee of $25million (Rs 115 crore approximately) to extend the rights to years 6 till 10 and an additional fee over the 9 years of the contract of Rs 310 crore.
“These fees were to compensate WSG Mauritius for returning its rights for IPL season 2 - 10 to BCCI in favour of MSM and were necessary if MSM was to secure the rights to IPL season 2-10,” MSM said.
However, the potential rating incentive at the end of year 5 of $35 million (Rs 160 crore) under the agreement dated 21 January 2008 was eliminated, and as a consequence of these commercial negotiations the net incremental amount attributable to WSG Mauritius giving up its IPL Indian subcontinent rights is Rs 150 crore, it said.
MSM also stated that the payments made to BCCI and WSG Mauritius have been in accordance with applicable laws and as per established norms.