Pune fails to pay fee, BCCI encashes guarantee
The troubles regarding T20 League doesn't seem to end as Sahara Pune Warriors failed to pay the full franchise fee for the current year which resulted in BCCI encashing the bank guarantee casting a shadow on its future in the cash-rich league in coming years.india Updated: May 21, 2013 19:21 IST
The troubles regarding T20 League doesn't seem to end as Sahara Pune Warriors failed to pay the full franchise fee for the current year which resulted in BCCI encashing the bank guarantee casting a shadow on its future in the cash-rich league in coming years.
"Yes, the BCCI has initiated procedure to encash the bank guarantee that has been deposited in order to procure Pune Warriors' franchise fee for the current year," a senior BCCI official told PTI on Tuesday.
Sahara bought Pune franchise for a record Rs. 1702 crore for 10 years. But they currently have dispute regarding the reduction of the franchise fee as initially there were 94 matches which was later reduced to 74 matches. The issue hasn't been resolved yet.
"In January this year, Sahara paid around 20% of the year franchisee fee which is approximately Rs. 170 crore. The BCCI was told that they will pay the remaining amount by May 19 but they failed. The governing council then decided to encash the bank guarantee."
However BCCI's decision to go ahead and encash the bank guarantee does raise a question-mark whether the franchise will be a part of the seventh edition of T20 league next year.
"It is too early to say what will happen next year but yes things are indeed looking ominous," another senior BCCI official informed.
When BCCI treasurer Ajay Shirke was contacted in order to confirm the amount of bank guarantee, he refused to divulge any information.
This is not the first time that BCCI has encashed bank guarantees after franchises failed to cough up the fees. Kochi Tuskers Kerala and Deccan Chargers were disbanded after they failed to pay the required fees.
Pune Warriors' performance has not been good in the three seasons of T20 league that they have taken part as they remained in the bottom rung.
First Published: May 21, 2013 18:41 IST