Don’t miss the latest developments in business and finance.

BCCI calls off deal with Nimbus

Image
BS Reporter Mumbai
Last Updated : Jan 21 2013 | 1:22 AM IST

Charges default; to encash Rs 2,000-crore bank guarantee.

It was a double whammy for telecaster Nimbus Sports. First came the announcement of World Series Hockey postponement, which it was helping set up. Then, the Board of Control for Cricket in India (BCCI) ended its four-year deal with Nimbus with immediate effect, over alleged non-payment of dues.

Said BCCI: “They (Nimbus) have defaulted. They have not paid the 50 per cent advance payment of both the England and West Indies series and that is why the contract was terminated.” The contract would have otherwise ended in 2014.

According to a BCCI official who attended its working committee meeting today, the board will proceed to encash a Nimbus bank guarantee of Rs 2,000 crore. “They paid Rs 24 crore ahead of the working committee meeting here but there was still an outstanding amount of Rs 88 crore,” said the official.

Considering there is no home series till next October, the BCCI brass felt there was enough time to find a new broadcaster. The termination means the rest of the domestic season would not be televised.

Nimbus, which has been broadcasting India's home series and domestic tournaments, is expected to approach a court of law. Its officials refused to comment on the development.

More From This Section

Nimbus has been BCCI's broadcast partner since it first signed a four-year deal in 2005-06 and renewed the contract in 2009-10, after being offered first right of refusal. In 2009, BCCI signed a four-year contract (2010-2014) with Nimbus, for around Rs 2,000 crore. Nimbus agreed to pay Rs 31.50 crore for each Test, 50-over and Twenty20 international match played in India in those four years.

Earlier during the day, Nimbus announced that the multi-crore World Series Hockey was being postponed until after the Olympic Qualifiers to be held in February. The event, a joint initiative of Nimbus and Indian Hockey Federation, was to start on December 17 but with several Indian players pulling out to join the national camp in Bangalore for the Olympic Qualifiers, the event has been now pushed to February 29.

Inspired by the Indian Premier League and Premier Hockey League, Nimbus Sport was expected to conceptualise, stage and market the hockey series. It had earmarked around Rs 40 crore for marketing the series and underwrite the cost of the league, beside providing IHF an annual fee for development of hockey.

Also Read

First Published: Dec 13 2011 | 12:38 AM IST

Next Story