The BCCI has terminated its contract with the International Management Group,the firm that was responsible for conceptualising and managing the Indian Premier League. In a letter dated August 28 and addressed to IMG vice-president Andrew Wildblood,a copy of which is available with The Indian Express,BCCI secretary N Srinivasan informed the global sports,entertainment and media company about the Boards decision to snap ties. The BCCI had entered into a 10-year deal with IMG in 2008 to manage the affairs of IPL based loosely on football leagues across Europe. A disagreement over payment issues has been cited as reason for premature termination of the contract. The letter informs IMG that the BCCI working committee was of the view that the amount which was asked by IMG was disproportionate to services rendered. It gives further details of negotiations between the BCCI president,the secretary and Wildblood in London in June. You (IMG) were asked to submit a fresh proposal before the next working committee meeting of the Board which you failed to furnish. Therefore please note that the BCCI has taken a decision not to use IMGs services any more for the Indian Premier League tournament. These negotiations had taken place after the working committee questioned the Rs 42.92 crore payment to IMG for the inaugural season. The letter explains why BCCI kept IMG on for Season II despite the working committees objections. During the pendency of the negotiations,your (IMG) services were utilised for the season 2009 during April/May 2009 for the IPL event which was shifted to South Africa. The contentious Rs 42.92 crore payment was based on the original MOU signed between the parties,according to which IMG was to get 10 per cent of the gross revenue of IPL as commission. Early this year,the BCCI finance committee said that the 10 per cent calculation should be made after excluding the IPL subvention to the boards state associations. In simple terms,they reckoned the IPL revenue had to first be divided between the 25 state associations before the 10 per cent due to IMG was calculated. Based on the financial committees recommendation the BCCI president authorised the secretary to re-negotiate terms of contract with IMG but the talks failed. Srinivasan refused to comment on the issue,while there was no official reaction from IMG either.
