CSK, RR pay franchise fee from board’s money, then move court
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 `35.40 lakh in February and `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
THE SLOW BOUNCER
Banned teams Chennai Super Kings and Rajasthan Royals delay payment of franchise fee to BCCI.
BCCI pays CSK `35.40 lakh and `13.64 crore in February and March as a share of telecast rights. The BCCI pays Rajasthan Royals `12.3 crore in February from the of `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 `10.8 crore and RR paid `8.4 crore to BCCI as 30 percent of their annual franchise fees but both the franchises paid same pool.
After receiving the money, CSK and RR pay back BCCI `10.8 crore and `8.4 crore, respectively.
CSK and RR take BCCI to court saying they will not pay franchise fees because they are not playing.
IF CSK FAILS TO GET A FAVOURABLE VERDICT IN THE ARBITRATION, IT WILL HAVE TO PAY `72 CRORE. FOR RR, IT WILL BE `56 CRORE FOR THE NEXT TWO YEARS.
up only after receiving their share of the NCR money from the BCCI.
CSK pay `36 crore and RR `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 `72 crore. For RR, it will be `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.