India news August 15, 2012

Deccan Chargers asked to pay players by August 31


The IPL governing council has set August 31 as the deadline for the owners of Deccan Chargers franchise to clear player payments and sort out the financial problems with the banks to avoid any stringent action. In an emergency meeting called on Tuesday in New Delhi, the governing council confronted the owners of Deccan Chronicle Holdings Limited, who hold the rights for the Hyderabad-based franchise, to explain in detail as to why the company had mortgaged the team ownership rights with two leading Indian banks.

According to the BCCI officials, the board owns the ownership rights and that no franchise could mortgage the rights on its own.

"The governing council asked the owners of Chargers to clear the players' payments as by this time usually almost 60-70% of the contractual amount usually gets paid. But the franchise had defaulted on that. Secondly, they need to sort out the financial mess with the various banks to make sure the team remains unbothered. We need to protect both the IPL and the players," a governing council official said.

According to the official, the BCCI was concerned after the banks had directly sought the board's involvement, asking to pay all the money set for the franchise, directly to them as Deccan Chronicle Holdings Limited owned them big money. "What is more concerning is the Deccan Chargers owners have hypothecated the intangibles. They have told the banks that the team has a certain market value and based on that they had procured the loans," the official said.

T Venkatram Reddy, the owner of franchise, was present at the meeting, but was adamant that the issue was unnecessarily blown out of proportion. "He outrightly blocked all the allegations by the banks and was confident all issues would get sorted by August 31," the official said. However, it is understood that the BCCI had already checked with the Registrar of Companies and found out that Deccan Chronicle Holdings Limited had accumulated borrowing charges amounting to INR 3200 crore.

According to the official, the banks were interested in knowing if they were in any position to sell the franchise on their own since the owners had defaulted to clear the dues. "We don't know what exactly the amount is but the very fact that the banks have approached us means it is a serious issue," the board official said.

At the two-hour meeting, the Deccan Chargers were told that their immediate step should be to clear player dues over the next fortnight. The 15-day deadline has also given the Deccan Chargers owners the option of giving the presenting the details of the prospective buyers of their franchise to the Governing Council. Officials say that the prospect of the termination of the franchise had arisen "almost 15-20 days ago" however, the BCCI was "keen to be seen to aid the franchises to a limit."

Nagraj Gollapudi is an assistant editor at ESPNcricinfo

Comments have now been closed for this article

  • V.L on August 17, 2012, 7:48 GMT

    @Lord___Dravid This is the first time it has happened with IPL and that too with only two of the franchises unlike BPL where all the franchises were like that. Besides IPL does not pay peanuts to the players unlike BPL and as such these things happen once in a while when large amounts of money is involved. There is no excuse for BPL not paying their peanuts on time though!

  • Sunil on August 16, 2012, 21:41 GMT

    I agree 100% there should be no delay in paying players. It's not unexpected to face such issues in earler years. I am sure in due course BCCI will impose more strict rules in future or compel franchises to pay to BCCI and then BCCI can pay the players. Dont worry ... it will sorted out and IPL will live long.

  • Lord on August 16, 2012, 16:15 GMT

    All those months was wasted playing in the Indian heat... :(

  • Alfred Bernhard on August 16, 2012, 16:09 GMT

    If you can't pay your players then why you call it a professional league...IPL is becoming a Joke.

  • Rocker on August 16, 2012, 15:54 GMT

    Its a shame for the teams and IPL.

  • Andy on August 16, 2012, 11:08 GMT

    @ Lord___Dravid: You must be kidding right. BCCI at least acted and asked their franchise to pay up, what happened with your case ? Its a world known fact, DC and RR are under a big pile of loans, so its not a surprise if they failed to pay on time.

  • Tanvirul hoque on August 16, 2012, 8:19 GMT

    Sachin_vvsfan--->thanks:) but u know it's kinda funny when yall laugh at others & IPL also joins the payment party. . . . . .

  • sri on August 16, 2012, 6:42 GMT

    @Lord___Dravid this is an issue with franchise not with IPL as whole. Please worry about your own BPL :)

  • amila on August 16, 2012, 5:47 GMT

    The so called best T20 league is in action! LOL Now it proves not just the cricket, management also poor..

  • shihan on August 16, 2012, 5:28 GMT

    So these people talking about BPL and SLPL..what about IPL??

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