MUMBAI: The Bombay High Court Tuesday gave the owners of Deccan Chargers three more days to furnish an unconditional and irrevocable bank guarantee of Rs 1 billion in order to secure a place in the season 6 of the Indian Premier League (IPL).

The high court accepted DCHL‘s application seeking extension of time to submit the bank guarantee. IPL team Deccan Chargers? owner Deccan Chronicle Holdings Ltd (DCHL) will now have to furnish the bank guarantee by Friday for its continuation as an IPL franchise.

The court had on 1 October directed Deccan Chronicle Holdings Limited to furnish Rs 1 billion bank guarantee by 9 October. However, the court had also stated that the order will cease to be in effect in the event DCHL fails to furnish a bank guarantee.

The court had directed DCHL to furnish a bank guarantee to allay the fears of the Indian cricket board that the company‘s financial health was not in good shape to run the team, which in turn would have an adverse impact on the IPL.

In response, the BCCI was told that it will be entitled to invoke the bank guarantee in the event of any default on the part of DCHL but only to the extent necessary.

The court had also appointed retired Supreme Court judge C K Thakkar as an arbitrator and had said that the arbitration process be completed within three months.

The court also told the BCCI that it will not act on the termination of franchise agreement pending the arbitration proceedings and making of an award by the arbitrator.

The BCCI had on 14 September terminated the franchise agreement of Deccan Chargers for breach of contract. The contract was terminated after DCHL rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

The cricket board had along with DCHL called for bids to sell the Hyderabad-based franchise in order to help the financially distressed company to find a buyer. The sale of Deccan Chargers is critical for DCHL to cut down its debt which is pegged at Rs 42 billion.

MUMBAI: The Bombay High Court Monday has ruled that the Board of Control for Cricket in India (BCCI) has acted in haste by terminating the franchise agreement of crisis-ridden IPL franchise Deccan Chargers.

However, the HC also gave a green signal to the BCCI to add a tenth new team to the cash rich league.

The court had on 17 September directed BCCI to maintain status quo by not invite bids for a new franchise on a petition filed by DCHL seeking to restrain BCCI to add a new team.

Reiterating what it said on 26 September, the court passed an order directing the franchise to furnish an irrevocable and unconditional bank guarantee of Rs 1 billion on or before 9 October which would be in force for one year.

If DCHL manages to furnish the bank guarantee before the deadline, it will be allowed to participate in the season 6 of the IPL and also renew contracts with players. All the franchises are expected to renew contracts with players before 31 October.

However, the court clarified that the order will cease to be in effect in the event DCHL fails to furnish a bank guarantee of Rs 1 billion.

While delivering the order, Justice SJ Kathawala said: "Though I find that the balance of convenience is more in favour of DCHL, I am of the view that the following protective orders will take care of the interest of both the parties."

The BCCI will be entitled to invoke bank guarantee only in the event of any default on the part of DCHL and only to the extent necessary, the court said.

The court also told the BCCI that it will not act on the termination of franchise agreement pending the arbitration proceedings and making of an award by the arbitrator.

It also told the BCCI that it will not act on the termination for a period of seven days if the award is in their favour.

The court had earlier appointed retired Supreme Court judge CK Thakkar as the sole arbitrator for the dispute between BCCI and DCHL.

The court disposed of the arbitration petition with a clarification that all the observations are prima facie and the arbitrator shall make his award without being influenced by any of the observations made in the order.

While directing DCHL to clear all outstanding dues includes players fee, the court told the BCCI to deposit the amount payable by the board to DCHL and payable in future to DCHL with the Prothonotary and Senior Master of the court which the Prothonotary and Senior Master shall invest in a fixed deposit of a nationalised bank from time to time until further orders of the court.

It needs to be noted that Yes Bank had filed a plea in the Bombay High Court that the receivables due to DCHL from BCCI be deposited in the media company‘s Yes Bank account. DCHL had also told the court that the money from central pool be paid to its Yes Bank account. The BCCI, however, contended that it can‘t do so since other lending banks are making similar claims.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, called for bids to sell the Hyderabad-based franchise.

DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

MUMBAI: The BCCI on Wednesday said it was at liberty to invite bids for the tenth team in the Indian Premier League (IPL) to fill in the slot left vacant by the termination of Kochi Tuskers Kerala.

BCCI president N Srinivasan said, "I cannot comment on the matter as it is currently sub judice. I?m informed the court may issue an order either today or in the near future. But as far as the board is concerned, it is at liberty to advertise for another franchise. But that?s a decision to be taken. If we have to go with nine teams, so be it."

The comments came a day after the Bombay High Court virtually left the door open for Deccan Chargers to participate in IPL season 6 by giving it 10 days to furnish an un-conditional bank guarantee of Rs 1 billion within 10 days.

Deccan Chargers had approached HC to appeal against the BCCI?s decision to terminate the franchise for breach of contract. The court on Wednesday asked Deccan Chargers to provide an unconditional bank guarantee of Rs 1 billion to BCCI within 10 days and appointed retired Supreme Court judge C K Thakkar as the arbitrator to adjudicate on the dispute between BCCI and the IPL team owners.

The BCCI counsel Rafiq Dada had also requested the HC to clarify on the issue of status quo order it had passed so that the cricket board could go ahead and issue the tender for the tenth franchise.

MUMBAI: The Board of Control for Cricket in India?s (BCCI) net surplus for the financial year 2011-12 has doubled to Rs 3.82 billion from Rs 1.89 billion in the previous fiscal, exceeding the cricket board?s own projection of Rs 2.96 billion.

The BCCI?s gross income for the fiscal jumped 46 per cent to Rs 8.49 billion from Rs 5.81 billion in the trailing fiscal on the back of an impressive jump in media rights income which increased to Rs 4.38 billion from Rs 3.88 billion.

The cricket board earned media rights income primarily from three of its properties -- Indian Premier League (IPL), Champions League T20 (CL T20), and international matches played in India.

While the IPL broadcast rights are held by Multi Screen Media for South Asia, Times Internet and Nimbus consortium holds the global telecast rights minus South Asia, Australia and South Africa in addition to new media rights.

The CL T20 commercial rights are held by ESPN Stars Sports, while Nimbus was the broadcast rights holder for India cricket until its deal was terminated in November last year following which Star India won the media rights till 2018 for a whopping Rs 38.51 billion.

Its surplus from IPL season 4 jumped 124 per cent to Rs 2.65 billion from Rs 1.18 billion in the prior fiscal. The surplus from Champions League T20, which has BCCI as the majority shareholder, saw a minor dip from Rs 482.9 million in the year ago period to Rs 476.3 million.

Income from tours too witnessed a sizeable jump to Rs 2.13 billion from Rs 1.94 billion.

Expenditure during the fiscal stood at Rs 4.67 billion, up from Rs 3.91 billion in the preceding fiscal. The expenditure on cricketing activities during the fiscal was up by Rs 847.6 million to Rs 3.38 billion.

The BCCI incurred an expenditure of Rs 436.4 million on television production during the fiscal, down from Rs 491.7 million in the previous fiscal.

It needs to be noted that the production for national team and domestic matches was being done by Nimbus Sport while the television production of the IPL was being done by IMG?s production division TWI until the BCCI decided to do the production in-house beginning with the India-New Zealand series.

The in-house production team is being headed by James Rego, who is Director of Broadcast Services.

MUMBAI: Financially distressed media company Deccan Chronicle Holdings Limited (DCHL), the owner of Indian Premier League (IPL) franchise Deccan Chargers, on Wednesday got a breather from the Bombay High Court in its dispute with the Board of Control for Cricket in India (BCCI).

The high court has asked DCHL to furnish an unconditional bank guarantee of Rs 1 billion within 10 days to BCCI, after which the cricket board will revoke termination of the Deccan Chargers franchise contract.

The direction for providing a bank guarantee is the result of BCCI?s apprehension whether DCHL was capitalised enough to run the IPL team. According to BCCI, every IPL franchise requires at least Rs 1.5 billion to run its affairs every year. DCHL disputed this claim saying the amount required is less than what was being quoted by the cricket board.

DCHL counsel Zal Andhyarajunam argued that the franchise fee payable to BCCI is constant every year save for fluctuations in dollar. DCHL had spent Rs 1.03 billion during season 5 of IPL which includes franchise fee of about Rs 470 million.

The high court also paved the way for the arbitration process between DCHL and BCCI by appointing retired Supreme Court judge C K Thakkar as the arbitrator, after the two parties could not reach an agreement on a mutually acceptable arbitrator.

Additionally, DCHL has taken an oath that it will immediately clear dues amounting to Rs 330 million of both Indian and foreign players in the team.

Andhyarajunam also said that a consortium of banks including Yes Bank have agreed to finance DCHL to run the IPL team for the next season of the tournament.

BCCI counsel Rafiq Dada said DCHL?s debt of Rs 42 billion from as many as 20 banks and financial institutions was a matter of grave concern for the BCCI. The BCCI was apprehensive about DCHL?s financial condition to run the IPL team.

The Yes Bank had filed Chamber Summons with the HC to be made a party to the arbitration process. It wanted BCCI to revoke termination of Deccan Chargers contract and deposit Rs 410 million due to Deccan Chargers from BCCI in their account with Yes Bank.

Dada contended that it was not in a position to release the money in Deccan Chargers? Yes Bank account since there had been similar demands from other banks. DCHL has given its nod for BCCI to deposit money due to it into its Yes Bank account.

The BCCI is worried that if the Deccan Chargers was reinstated with support from multiple banks it would be faced with similar claims from banks with each asking the cricket board to deposit funds due to Deccan Chargers into the franchise?s account with them in case of a dispute.

BCCI also stated that DCHL can?t delegate or sub-contract rights granted under franchise agreement to any other party. If they do so it?s a breach of contract, Dada said.

The court assured that it would protect the BCCI from future claims by banks. It also said that the BCCI can invoke bank guarantee in case Deccan Chargers defaults on any payment in future.

The HC had on 17 September directed BCCI to maintain status quo and not invite bids for a new franchise to replace Deccan Chargers in the IPL.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, called for bids to sell the Hyderabad-based franchise.

DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

If the DCHL manages to furnish a bank guarantee of Rs 1 billion, it will become the third franchise to stage a comeback after a legal battle. Earlier, Rajasthan Royals and Kings XI Punjab were reinstated as franchises after contesting BCCI?s termination notice in court.