rahul1117kumar
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Rajasthan Royals and Chennai Super Kings, have moved court for arbitration against paying the IPL franchise fees to the BCCI despite being suspended from participating in the T20 tournament for two years.
The two franchises had been handed the penalty last year by the Lodha committee. The BCCI had informed both the franchises subsequently that they would have to continue paying the participation fees every year so that their teams remain part of the IPL fabric. It meant that CSK and the Royals were shelling out Rs 73 crore and Rs 56 crore respectively per year despite not getting to play in the IPL.
“Yes, we moved the Bombay High Court in April, seeking to resolve the dispute over the payment of the franchise fee through arbitration. Rajasthan Royals, too, did the same and both arbitration have been held simultaneously. The oral hearings are over but some technicalities remain. So it might take at least another two-three months to reach a verdict,” Chennai Super Kings manager George John told The Indian Express. “Our logic is simple; why shall we pay the franchise fee, when we are not playing?”
It’s learnt that both franchises made their first installments before deciding to go in for arbitration.
“They had paid us the first installment under protest. They felt it was unfair on the part of BCCI to ask for franchise fees. We had made it very clear that the board will not bear the loss. The image of the BCCI has already taken a big hit after the whole spot-fixing scandal. If they want to remain a part of the league, they will have to continue paying the fees,” a top BCCI official said.
Except for Rising Pune Supergiants and Gujarat Lions who represent Rajkot, the two new IPL franchises in IPL 9, the IPL rules state that the rest have to pay one-tenth of their original bid amounts over a 10-year-period starting from 2008.
Asked to pay franchise fees, CSK and RR move court | The Indian Express
The two franchises had been handed the penalty last year by the Lodha committee. The BCCI had informed both the franchises subsequently that they would have to continue paying the participation fees every year so that their teams remain part of the IPL fabric. It meant that CSK and the Royals were shelling out Rs 73 crore and Rs 56 crore respectively per year despite not getting to play in the IPL.
“Yes, we moved the Bombay High Court in April, seeking to resolve the dispute over the payment of the franchise fee through arbitration. Rajasthan Royals, too, did the same and both arbitration have been held simultaneously. The oral hearings are over but some technicalities remain. So it might take at least another two-three months to reach a verdict,” Chennai Super Kings manager George John told The Indian Express. “Our logic is simple; why shall we pay the franchise fee, when we are not playing?”
It’s learnt that both franchises made their first installments before deciding to go in for arbitration.
“They had paid us the first installment under protest. They felt it was unfair on the part of BCCI to ask for franchise fees. We had made it very clear that the board will not bear the loss. The image of the BCCI has already taken a big hit after the whole spot-fixing scandal. If they want to remain a part of the league, they will have to continue paying the fees,” a top BCCI official said.
Except for Rising Pune Supergiants and Gujarat Lions who represent Rajkot, the two new IPL franchises in IPL 9, the IPL rules state that the rest have to pay one-tenth of their original bid amounts over a 10-year-period starting from 2008.
Asked to pay franchise fees, CSK and RR move court | The Indian Express
