CSK, RR pay franchise fee from board’s money, then move court

  • Jasvinder Sidhu
  • Updated: May 28, 2016 08:46 IST

NEW DELHI: In true Twenty20 style, suspended Indian Premier League franchises Chennai Super Kings (CSK) and Rajasthan Royals (RR) have bowled a slow bouncer at the Indian cricket board.

Knowing the working style and legal strength of the BCCI, CSK and RR played a smart waiting game, getting their final instalment from the Net Central Rights (NCR) revenue for the 2015 IPL before dragging the Board to court against the demand raised for franchise fees.

The NCR is the central pool of funds the BCCI generates by selling the IPL telecast rights.

From that pool, the BCCI released an amount of Rs 35.40 lakh in February and Rs 13.64 crore in March to CSK.

“We filed for arbitration in Mumbai in April as we felt it is injustice with both franchises. We have received all our dues for 2016, but why should we pay franchise fee when we are out and banned. Also, we have not received any money for 2016,” CSK manager, George John, told HT.

RR received the last instalment of Rs 12.3 crore from BCCI in February.

Interestingly, the Board had asked CSK and RR to deposit 30 percent of the annual franchise fee by January 2, which both franchises paid under protest.

CSK paid Rs 10.8 crore and RR paid Rs 8.4 crore to BCCI as 30 percent of their annual franchise fees but both the franchises paid up only after receiving their share of the NCR money from the BCCI.

CSK pay Rs 36 crore and RR Rs 28 crore every year as franchise fees to BCCI.

If CSK fails to get a favourable verdict in the arbitration, it will have to pay Rs 72 crore. For RR, it will be Rs 56 crore for the next two years.

The Supreme Court-appointed Lodha committee handed twoyear suspensions for both the franchises in July last year in connection with the 2013 spotfixing scandal.

“The contract with the franchise is legally binding. There are very clear clauses. Their plea is not strong enough. So, I don’t think their case will stand for long,” a member of the BCCI legal team said.

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