Kochi Tuskers have won arbitration against the Board of Control for Cricket in India (BCCI) over wrongful terminational from the IPL. The now scrapped franchise has asked to be paid Rs 850 crore in compensation. “Kochi Tuskers has demanded Rs 850 crore as compensation. Today we discussed the matter at IPL GC (Governing Council) meeting and we will now place the matter before general body. Let them take a call but obviously some negotiations are needed,” IPL chairman Rajiv Shukla said after the meeting. Earlier in the year, during negotiations, BCCI had reportedly offered to pay Rs 460 crore to the owners which was rejected.
The franchise owners had won the arbitration in 2015 challening BCCI’s decision to encash bank guarantee citing breach of agreement. The RC Lahoti headed panel had directed BCCI to pay Rs 550 crore as compensation with 18 percent annual penalty on failing to do so. But for the past two years, BCCI tried to neither pay compensation or include the franchise back in the IPL.
We have to pay Kochi compensation. All legal options have been exhausted. Normally when arbitration decision goes against you, it will be stupid to move Supreme Court appealing against it. We have no option but question is how much,” an IPL GC member was quoted as saying by PTI.
The decision to terminate Kochi’s contract was taken by then BCCI president Shashank Manohar citing breach of franchise agreement even as other members expressed disagreement with his call. “It was one man’s obstinacy that is now costing us a bomb. Had Shashank not taken that decision, we could have worked our way out. In fact, before Kochi went to arbitration, they had asked for a compensation of Rs 300 crore. Even then our officials showed arrogance and now we will be forced to shell out more than double,” the official further added.
In another development, BCCI will earn a token sum of Rs 5 lakh from Chennai Super Kings (CSK) as part of 5 per cent earnings from total valuation of a franchise that transfers ownership. CSK is now owned by Chennai Super Kings Company Limited (CSKCL) from the previous ownership of India Cements.