With all the deals made by Lalit Modi — some approved by the IPL Governing Council and others entered into without their consent — coming up for review, the BCCI has its work cut out. The biggest deal that will be looked into closely is the television rights for the IPL, which runs into Rs. 8,200 crore for nine years.
The deal entered into with World Sports Group (Mauritius) and Multi Screen Media (MSM) runs from 2009 to 2017, after the original deal with Sony ($1.026 billion for 10 years) was renegotiated after the end of the 2008 edition of the Twenty20 tournament.
The sticking point in the deal subsequently struck with WSG and MSM is the facilitation fee of Rs. 425 crore paid to WSG without the knowledge of the BCCI. The BCCI is treating this 425-crore fee as a loss, as the secretary N. Srinivasan made plain in his report to all the state associations on Tuesday.
MSM, however, have sought to explain the fee, saying $25 million (Rs 115 crore) was an option fee to extend their rights from season 6 to 10 of the IPL as they had originally been awarded rights to the first five seasons. An additional 310 crore was spread over nine years of the contract period.
The BCCI, however, are not satisfied with this explanation. All along Modi has contended that this facilitation fee was “normal” and that he was aware that such a fee was involved but did not know the “quantum.”
The BCCI has not found any reason to enter into an agreement that resulted in such a fee being paid out, and has asked for a more detailed enquiry.
There are 14 other points on the agenda for the Governing Council’s meeting on June 25, including the passing of various accounts and the submission of reports ranging from the progress investigating agencies (Enforcement Directorate, Income Tax etc) have made in the IPL case and letters from Kings XI Punjab and the Delhi Daredevils. The Kings XI Punjab have sought permission for a stake sale and the GMR Group are planning to restructure the shareholding patter of the Daredevils.