The deadlock between Sahara India and Board of Control for Cricket in India (BCCI) has ended. Sahara will continue to sponsor the Indian cricket team and own the Pune Warriors IPL franchise.
After a series of meetings over the past few days, both parties found common ground today. This time, the board seemed to have made a serious effort to end the impasse by starting fresh discussions.
Former president Shashank Manohar was called to meditate. It was during his tenure that Sahara was added to the IPL (Indian Premier League) in 2010.
As part of the compromise formula, BCCI has accepted Sahara’s two main demands of being allowed to play five foreign players if the other IPL teams agree and reduce the franchise fee.
| REQUESTS AND OUTCOMES | |
| SAHARA | BCCI |
| Allow five foreigners in playing XI to compensate for Yuvraj Singh’s absence | Can play five foreign players, if the other |
| Give 27 per cent reduction in franchise fee | IPL teams agree |
| Adjust bank guarantee against franchise fee in two equal instalments | Will start arbitration proceedings to address the claim |
| Open auction in 2013 | Will consider it at the next available opportunity |
| Strategic partner for | Can’t oblige |
| Pune Warriors franchise | No objection |
| BCCI ALSO AGREES | |
| * To extend the trading window till Feb 29, so that Sahara can have successful negotiations with other franchises | |
| * To sign foreign players who were not in the auction register, subject to the relevant player regulations and the views of other franchises | |
According to a joint statement issued by Sahara and BCCI, both parties will start arbitration proceedings after the appointment of an arbitrator to address the claim. Sahara had asked for a 27 per cent reduction in franchise fee, as the number of matches was decreased to 76 from 94 mentioned in the IPL contract.
The Subrata Roy-led company had paid a whopping Rs 1,700 crore for the Pune team, making it the costliest in the league.
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Sahara has requested it be allowed to furnish the bank guarantee in two instalments against the franchise fee the BCCI will consider later. BCCI has agreed to open the players' trading window for Sahara till February 29. It agreed to reactivate the auction purse for Pune Warriors at $3.8 million, including $1.8 million paid for marquee player Yuvraj Singh.
The board has no objection to the replacement of Singh, who is undergoing cancer treatment.
It allowed Sahara to find a strategic partner or to offload stake in their franchise.
Sahara will continue to sponsor Team India under a renewed sponsorship agreement. At present, it pays Rs 3.34 crore per international match. The present agreement was till December 31, 2013.
“There should be a perfect level playing field. We have strongly requested to go for an open auction. Due to the policy of retention, a disparity in the player ability and corresponding payment structure is created. They have said that they would take up the issue seriously in the near future,” said Roy.
Last week, Sahara had announced it was withdrawing as the official sponsor of the Indian cricket team after 11 years and also from the IPL, saying it was denied natural justice.
Actor and Kolkata Knight Riders team owner Shah Rukh Khan was said to have volunteered to call a meeting to mediate between IPL teams and played a role in the board-Sahara discussions.