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Friday, July 20, 2012

India's tour of Sri Lanka - IPL franchisee not able to pay its players

Do you see cinemas often ? whether it is Bollywood, Kollywood or Tollywood – most often rich beautiful looking heroin would fall in love with  poor illiterate uneducated youth and after undergoing trouble, they both unite……….. we tend to think that they lived happily thereafter – no cinema shows how really they run their family years later when the initial clouds pass away.

After IPL, Indians are to play official International matches and sure most of us would be watching the Series closely.  India is to play 5 one dayers and a solitary T20 matches at Hambantota, Colombo and Pallekele.  The first one day is slated at Mahinda Rajapaksa International Cricket Stadium , Sooriyawewa, Hambantota tomorrow [21st july] 2nd on 24/7; 3rd on 28/7; 4th on 31/7 and the last of the One dayers on 4th Aug.  the T2o is on Aug 7th.  All One dayers would begin at 14:30 IST incidentally  Srilankan time also and the T20 would begin at 19:00 IST.

The whole World – more of those who do not like Cricket tended to equate IPL with a villain –  criticizing IPL is all about money – it did appear that everyone connected with IPL were basking in money. Everyone seemingly were making money – it was ‘money chasing more money – and ending up richening the coffers of everybody involved – the players, the franchisees, the administrators, the stadium, the advertisers – and who was becoming poorer, only the spectator who was paying hefty prices for some non-descript  matches’

The reality often throws a much different picture and here is some :  the touted franchisee of Vijay Mallaya - Royal Challengers Bangalore is not offering any solution to Mallya’s financial troubles, given the bad shape his IPL franchise is in. A report in the Economic Times says the company has defaulted on its payments to players of team.   South African Cricketers Association, has been quoted as saying in the report that there are other international players from RCB (Royal Challengers Bangalore) who have not been paid. According to the report, the players who had not received remuneration include captain Daniel Vettori.  Earlier, there were reports that Mallya may sell his stake in Royal Challengers to service the debt of Kingfisher Airlines.  The Airlines staff have been fighting with the management to get their salaries from March. Mallya had bought Royal Challengers for $116 million.

IPL 5 saw the exit of Kochi Tuskers albeit for different reasons.  In Sept 2011,  BCCI announced that the Kochi Tuskers Kerala IPL franchise was terminated for breaching its terms of agreement.  There is also news that Hyderabad-based publisher Deccan Chronicle Holdings has put a reserve price valuation of R1,500 crore, nearly three times its original acquisition cost, to sell its Indian Premier League cricket team Deccan Chargers (DCL) – reportedly the money is to be used to repay the lenders.  The Firm was   reported to have purchased the team in 2008 for closer to 600 crores.  Deccan Chronicle, which publishes Deccan Chronicle and Financial Chronicle is reported to have defaulted payments to its lenders.

So after 5 seasons, the money churner is showing cracks at its foundation – often in market, lambs are grown fatter to be hived off to potential buyers at high premium.   On a different note,  Deccan Chargers' former Chief executive Tim Wright, who had sued the franchise for breach of employment contract, won the case in the Royal Courts of Justice, London. Judge Seymour ordered Deccan Chargers and Deccan Chronicle Holdings to pay Wright 10,533,478 pounds due under his contract.  There are reports that Deccan Chargers sure would appeal against this award.

So, has the IPL juggernaut hit a speed breaker or is the huge flyer getting grounded  !

With regards – S. Sampathkumar

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