Kochi Tuskers Kerala has suspended from Indian Premier League 5 (IPL), KTK franchise’s contract was terminated by the Board of Control for Cricket in India (BCCI) at its Annual General Meeting on Monday. A termination letter sent on Monday to Kochi Cricket Private Limited (KCPL) and Rendezvous Sports World (RSW) talks of a certain Clause 8.4 of in their agreement, which ‘requires’ them to submit the bank guarantee before March 27, 2011. The Board terminated the contract ‘in view of the breach in the aforesaid agreement. The BCCI terminated Kochi Tuskers’ contract after the franchise, despite repeated reminders, defaulted on a Rs 156 crore annual payment it was to make as bank guarantee.
But Kochi Tuskers director Mukesh Patel said that they don’t have any dues outstanding and in fact the BCCI owes them Rs.12-15 crore next month as a share in the central revenue.
Mukesh Patel said, ”We don’t have any outstanding dues with the BCCI. The termination is illegal. We will take them (BCCI) to court. In fact, the BCCI will be paying us Rs 12-15 crore next month as a part of our central revenue,” said Patel. The franchise was bought by a consortium, comprising some Gujarat-based businessmen, last year for a whopping Rs 1,550 crore. According to rules, franchises have to pay the amount in 10 equal installments.
BCCI president Shashank Manohar, who had told Kochi’s owners that in case they needed an extension, they should send a letter signed by all the owners stating they would fulfill their commitments under the franchise agreement or the BCCI could encash the bank guarantee. The franchise had assured Manohar they would send the letter the same evening.
According to Sources, The BCCI was not worried about Kochi going to court because it was the franchise that had defaulted. As for the players, they are likely to go back into the auction. “And in case the players’ dues are not paid, we would ensure that it is paid from the bank guarantee money we encash.”
The BCCI in the past had also turned down Kochi Tuskers’ request to cut down their franchise fees. Kochi owners were promised 18 games in the Invitation to Tender (ITT) document but it was cut down to 14 as the fourth edition was reduced to a 74-game tournament.