The Board of Control for Cricket in India (BCCI) on Wednesday rejected requests of the Kochi and Pune teams to reduce their Indian Premier League (IPL) franchise fees by 25 per cent. N Srinivasan, BCCI secretary, said it was not possible for the board to reduce the fees.
Kochi Tuskers Kerala Director Mukesh Patel said he was yet to receive any official response from the board. “I will comment on the issue once I get an official confirmation from the board. It was our fundamental right because we were promised 18 games and the fees were charged accordingly,” said Patel.
So far, Pune and Kochi have already paid 75 per cent of the fees as part of their annual payment and had sought waiver on the balance. Kochi and Pune franchises had argued that as per the contract, each team was to play 18 matches on a home and away basis, but the BCCI reduced the number to 14.
IPL had initially planned 94 matches, which got reduced to 74 because of the hectic international calendar. The Invitation to Tender had specifically laid out the same format to be played among 10 teams that was played by eight teams last year.
It was clear from the provision that each season would see teams playing nine home and nine away matches leading to a 94-match season.
According to the contract , both these teams have to pay 10 per cent of its franchise fee to the board annually for 10 years. For instance, Kochi have to pay Rs 150 crore but have paid only Rs 112.5 crore so far. Sahara bought the Pune team for Rs 1,700 crore while Kochi invested Rs 1,500 crore.
Board offcials said the new teams are upset as they had bid for their teams at high rates under the impression that their share of revenue would come from nine home and away matches.
Based on a particular business module, the teams have claimed that the loss of four matches is close to 25 per cent of the games promised to them and accordingly, the franchises have deducted their annual fee due to the BCCI.
