Fixing of a different kind catches Indians off guard
The money in the Indian Badminton League (IBL) was meant to boost to the country’s shuttlers. However, the mode of payment is a cause of heartburn for domestic players. The Indian players might lose out on exchange rate if the rupee continues to fall. Firoz Mirza & Anand Sachar report.other Updated: Jul 24, 2013 02:58 IST
The money in the Indian Badminton League (IBL) was meant to boost to the country’s shuttlers. However, the mode of payment is a cause of heartburn for domestic players. The Indian players might lose out on exchange rate if the rupee continues to fall.
Like is the case with any auction, the IBL authorities have fixed the value of the dollar to Rs 54.4 to counter the volatility of the rupee which is hovering at around Rs 60. While this will not affect the foreign players, as they would be paid in dollars, it may cause a big loss to the Indians.
According to the BAI, the Indian players shared $8,61,000 (Rs 5.1 crore at current conversion rates) among themselves in the IBL auction. It means the total amount spent on Indian players by the six franchisees was $96500 (Rs 57 lakh) more than what the international stars got.
Going by the conversion rate fixed, the total amount for which Indian players were bought stand at about Rs 4.68 crore. However, if the existing rate of dollar is taken into account, it jumps to R5.14 crore, thus causing a loss of around R46 lakh to Indian players.
“The dollar rate has been fixed to arrive at a definitive amount for the auction. We will pay the foreigners in dollars and Indians in rupees on existing rates,” said Ashish Chadha, CEO of Sporty Solutionz, commercial partner of IBL.
However, a franchise official said that would be a loss-making proposition for the owners. “If the franchise’s purse has been decided by fixing the dollar rate at Rs 54.4, then how can we pay players on existing rates?” he said.
One of the top players bought in the auction claimed that there was no communication on the matter from the organisers, but they expected the money at the present rate. Every team was awarded a purse of $ 2,75,000 (Rs 1.6 crore) for the IBL auction. According to the payment structure, a player has to be paid 25% of contracted amount in advance while another 25% would be paid before the start.
The remaining 50% would be paid in two equal installments with the first being paid before the 1st semifinal while the last one being paid within a week of conclusion of the tournament.