IPL news

BCCI terminates Deccan Chargers franchise

ESPNcricinfo staff

September 14, 2012

Comments: 54 | Text size: A | A

Kumar Sangakkara had another failure with the bat, Deccan Chargers v Royal Challengers Bangalore, IPL, Hyderabad, May 20, 2012
It is still unclear whether Deccan Chargers' players will be retained by the new buyer, or put up for auction for the other IPL teams © AFP

Other troubled franchises

  • Kochi Tuskers Kerala: Terminated in September 2011 after it was unable to furnish a bank guarantee for 2011
  • Rajasthan Royals and Kings XI Punjab: The BCCI had wanted to expel both franchises from the IPL in 2010, alleging violations of the contract agreement. The franchises denied any wrongdoing, and the matter is stuck in litigation
  • Pune Warriors: Pulled out an hour before the 2012 auction. Their owners Sahara, who also sponsor the Indian team, cited problems with the sponsorship dating back to 2001, but the major disagreements were related to the IPL. The BCCI and Sahara patched up two weeks later.

The BCCI has terminated the troubled Deccan Chargers franchise, winners of IPL 2009, after an emergency league governing council meeting in Chennai on Friday. Senior BCCI officials told ESPNcricinfo that the tender for a new franchise would be issued on Saturday.

A BCCI statement issued late on Friday night said the board's action came after what it called a "sudden change of stance by the franchise" regarding its commitments and the board's belief that any further extension of time to the franchise owners would "seriously prejudice the interests of the players."

"This evening, the BCCI received a lawyers' notice invoking arbitration from the franchise stating that it had not committed any breaches and even if such breaches were committed, the BCCI should not act to terminate the franchise till Yes Bank Ltd furnishes sufficient finance to cure the breaches," the statement said. "By this, Deccan Chronicle Holdings Ltd has clearly admitted its inability to cure its breaches within the time stipulated in the BCCI notice despite every bit of assistance from the BCCI. Since the month of May, BCCI has received repeated assurances that the overdue player fees would be paid; all of these promises have been unfulfilled.

"Considering the stated position of the Deccan franchise to refuse to rectify the various defaults including payments to players, foreign Boards etc, as also the deleterious effect such conduct would have on the reputation of the IPL and the franchise itself, a decision was taken to forthwith terminate the Deccan Chargers franchise."

The BCCI marketing committee is scheduled to meet in Chennai on Saturday morning to discuss and finalise the tender to add a team to the IPL. A board official said there would be a shortlist of cities for the bidders to choose from, with the location of the new franchise to be decided by the highest bid for one of those cities.

The fate of the players is not yet clear; they might be retained by the next buyer or be put up for auction for the other IPL teams. Chargers' squad boasted some of the world's top current players, including Dale Steyn, Kumar Sangakkara, Cameron White, Ishant Sharma and JP Duminy. The coach is the Australian, Darren Lehmann.

Deccan's IPL history summed up the romance of cricket; bottom of the league in their first season, they came together in 2009 under Adam Gilchrist to win the tournament in South Africa. Their performance in subsequent seasons, however, has been below-par.

Friday's developments bring the curtains down on an issue that has dragged on for three-odd months after the team's owners, Deccan Chronicles Holdings Limited (DCHL), ran into financial problems. Last month, the banks knocked on the BCCI's doors to help them out, after which the board had set a deadline of September 15 for Chargers to clear all their dues including player payments and report with a clean slate. However, DCHL said they were unable to sort out the problems and formally placed the team up for sale on September 6.

The owners and the BCCI set September 13 as the auction date but received only one bid, for Rs 900 crore ($164 million) from PVP Ventures, a Hyderabad-based urban infrastructure and film production company. DCHL rejected the bid as it considered the price and terms unsuitable but the BCCI may now offer PVP a second chance to buy the team.

DCHL had till 5 pm on Saturday to come up with a solution but the termination one day ahead implies they had informed the BCCI about their inability to do so.

© ESPN Sports Media Ltd.

Posted by ThatsJustCricket on (September 16, 2012, 13:24 GMT)

All the folks ranting here about IPL destroying player ethics as they choose to represent their franchises over their country, I would just say one thing, won't you switch jobs if you get an offer that pays way more than you current job? Seriously, playing cricket is the JOB for these players just like anybody else having a job. And those who say playing for the country made the players what they are today, well, my first job gave me experience and made me what I am today, but it would be laughable to say that it binds me to never switch jobs even if I get a much better offer.

Posted by baghels.a on (September 16, 2012, 8:20 GMT)

I don't get some of my fellow Indians, do you know/ watch any other sports? EVERYTHING is clubs/franchises based in every single sport, and international play is held in special tournaments to make the games more meaningful! Why are you all so determined to go against the tide, is it cause you don't know any better? Afraid of change?, most of these people have never seen any sports in life except olympic games,most of them are either middle aged or NRI'S who have become overpatrotic after leaving the country for dollars and euros.Newsflash IPL still gets better ratings than most Indian test matches and some meaningless odi's and gets bums on seats even in scorching Indian summer heat,lets enjoy cricket weather it's team India or KKR !!!!!!!!

Posted by   on (September 15, 2012, 12:41 GMT)


Posted by afzalhyderabadi on (September 15, 2012, 10:38 GMT)

thank god!! Now, we hyderabadis can concentrate on other sports, which require more stamina and skills than cricket. and our kids won't get distracted during exams due to IPL. Even myself got distracted from studies during my exams due to IPL. It will save lot of time for us. But what should we do with all the costly merchandise we bought to support deccan chargers???????

Posted by   on (September 15, 2012, 10:07 GMT)

If Indian team will out from T20 world cup in early stages then there is no advantage of this fake or full of controversy IPL.I request to BCCI please don't involve in any other board ,like Bangladesh and Srilanka they are the puppet of Indian board,please don't take personally to everyone.

Posted by BigMachine on (September 15, 2012, 9:44 GMT)

@victor masaka - I agree, even if for no other reason than the cringe-worthy team names - i mean "Super Kings" "Royals".... What four year old thought of them???

Posted by sweetspot on (September 15, 2012, 9:21 GMT)

It seems many have this wet dream of IPL coming to a close. Too bad, that is never going to be realized. The IPL is one of the most successful sporting leagues in the world, and given its short history and the limited nations following the sport, it is nothing short of stupendously successful. As for Deccan, it sure sounds like poor money management on the part of the owners, who thought their franchise will yield a bounty no matter how they run it. Well they sure know how to run a franchise - into the ground, pun intended. @RathishCochin - Parthiv Patel's first team, CSK, is doing just fine.

Posted by Milind_Jadhav on (September 15, 2012, 9:02 GMT)

Amusing to see comments from people who do not even attempt to understand that the problems arose elsewhere in DC Holdings businesses and the impact was on DC.

Posted by bala_sachin on (September 15, 2012, 9:01 GMT)

only IPL can make cricketers life more happier like english premier league is for football players

Posted by   on (September 15, 2012, 8:01 GMT)

From IPL1 deccans price tag made no sense, 3rd highest bid when hyd isnt cricket crazy like other places in india nor does it host many matches. Combine that with their horrible home record & overall record also. I can see why the team didnt make as much money when they won ipl2 it was in south africa so the fans didnt get to see them make the semis & win the final. The way they got rid of players was also worrying, kp + ojha last year & half the mumbai indians team is former deccan players. Id like the PVP Ventures group to buy the team & keep it in hyd because it would be a bit pathetic for a top 10 indian city to lose its team because they cant pay.

Posted by bala_sachin on (September 15, 2012, 7:59 GMT)

as a hyderbad fan....very very happy to listen that DC owners , who are worst money spenders for players and hope to get a new owners for HYDERABAD ONLY...OTHERWISE WONT SEE IPL

Posted by klapka on (September 15, 2012, 7:53 GMT)

I fail to understand why people think IPL is an all or nothing deal. I agree that it the money involved is highly speculative and some investments dont make sense, but that could change without the league itself ceasing to exist. IPL is the second highest paid sports league in the world (after NBA), I'm sure players will turn up even if they're paid much less than what they're paid now.

Posted by   on (September 15, 2012, 6:27 GMT)

i hope new franchise remains with hyderabad as their home

Posted by   on (September 15, 2012, 6:09 GMT)

They should terminate the IPL while they are at it as well

Posted by   on (September 15, 2012, 5:48 GMT)

The end is nigh. Lots of debt just like the english premiership. When has sport every been a viable business model?

Posted by RathishCochin on (September 15, 2012, 5:34 GMT)

Poor Parthiv Patel...

Where ever he go, the team has TERMINATED...

So in next year where you going dear...?

Posted by pragmatist on (September 15, 2012, 5:28 GMT)

"Deccan's IPL history summed up the romance of cricket"... SERIOUSLY?!?! Is the writer aware of the rich history of the game. The glitzy sideshow of IPL may do many things, some of them really entertaining, but it's got nothing to do with the romance of cricket.

Posted by   on (September 15, 2012, 5:09 GMT)

I don't get all you Indians, do you know watch any other sports? EVERYTHING is clubs/franchises in every single sport, and international play is held to special tournaments to make the games more meaningful! Why are you all so determined to go against the tide, is it cause you don't know any better? Afraid of change?

Posted by   on (September 15, 2012, 4:42 GMT)

If the indians exit from T20 world championship early it will Probably end the IPL business.

Posted by cooljack_143 on (September 15, 2012, 4:07 GMT)

Hyderabad NAWABS on their way to introduce now!!!! DC is past..they have no luck lately..

Posted by getsetgopk on (September 15, 2012, 4:04 GMT)

And so things happen in business, one day the business will go down so bad the whole of IPL will shut shop and invest in something else i mean isn't that just happened here? so much for the charm

Posted by Nair_saab on (September 15, 2012, 4:00 GMT)

ohh..Gayathri....what have you done. I only watched the DC matches because of you. Surely will miss you next season :(

Posted by SMALI_RWP on (September 15, 2012, 3:56 GMT)

One cannot deny IPL the credit of introducing the exceptional competative spirit displayed by the players in the IPL franchise teams. This kind of hi-octane competative spirit one use to associate with the Australian league and to some extent English counties. But thanks to IPL that not only the indian players gained the competitveness but generally players from other ICC playing nations have also greatly benefited from it. Having said this the quantum leap which IPL made in the way of players monetary benefit is most extraordinary. An outsider doesn't have to speak for IPL the participating player's opinion are itself a proof of it. Was it not just few years back that only the English county and Australian league offered a reasoable earnings to cricketers but IPL trumped them all. Hats off, well done IPL and the Indian businessmen and in partucular to the poineer Messers Dalmain and Pawar. Just be careful of laxity and indicipline these are potential pitfalls to watch. Good luck.

Posted by msnsrinivas on (September 15, 2012, 3:38 GMT)

Good riddance. Some people are just low on class. A cursory look at Deccan Chronicle and you'll know exactly what I mean.

Posted by   on (September 15, 2012, 3:13 GMT)

"Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes a bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill done." John Maynard Keynes, 1883-1946

Posted by squarepeg on (September 15, 2012, 2:50 GMT)

Hope this drills some sense into BCCI and brand-value seeking corporates. IPL is surely destroying the ethics and honour, otherwsie how can players choose to play for IPL team over their countries.

Posted by   on (September 15, 2012, 2:40 GMT)

the team owners need to learn how to judiciously spend their money and invest properly..like any other company...cant expect extraordinary profits straightaway...IPL is jus a budding industry...jus around 5 years old...these are just speed breakers on the massive business highway that the IPL will pave for indian and foriegn investors..IPL has not reached its peak as of now...jus a few years more and it shall spark..IPL jus needs the support of its fans and it shall succeed..go IPL..!! :)

Posted by   on (September 15, 2012, 2:37 GMT)

No Hyderabad representation in Indian cricket,,,now other sports can grow in Hyderabad....

Posted by   on (September 15, 2012, 2:15 GMT)

Hope we get a gujarati team !!! Praying to god for it!! :)

Posted by urprashant on (September 15, 2012, 2:06 GMT)

@maximum6 don''t be a day dreamer! IPL is maturing as a product. Small business houses like Deccan are going out and bigger business houses like videocon and Anil Ambani's Reliance are awaiting outside to buy teams at much higher prices and in the process making IPL a much bigger and richer tournament. So unfortunately your wishes are never going to get fullfilled!!

Posted by   on (September 15, 2012, 0:53 GMT)

These corporate guys came into picture to make money, not to promote cricket. They expect to make quick bucks and that's not the case here. Players don't complain when they get astronomical pay cheques. Now they should also be prepared to these eventualities. Save for a couple of teams, every IPL team has run into rough weather. Another couple of years, you will see BCCI terminating the league altogether. Hope players understand this and concentrate on first class cricket and earn their place in national team.

Posted by 2.14istherunrate on (September 14, 2012, 22:39 GMT)

What about the rest of the franchises? Can't you terminate them too? If the writing is on the wall for IPL, can I sign it?

Posted by torsha on (September 14, 2012, 21:44 GMT)

Peter_Jones2012 .. LOL you are funny. Just because RCB has some issues that doesn't mean u can blame all teams. By far it is the richest of all leagues out there. Hah

Posted by Kirk_Levin on (September 14, 2012, 21:01 GMT)

Had to happen. IPL is going to go bust in few years time. teams are struggling to pay players salaries and they are all reporting heavy losses.

Posted by Andre2 on (September 14, 2012, 20:46 GMT)

I agree 100% with Sunil Prasad (Sept 14 @ 18:19 pm gmt) and Srinivasan Narayanan (Sept 14 @ 19:45 pm gmt).

Posted by binojpeter on (September 14, 2012, 20:34 GMT)

I agree with Ankur. IPL is 100% free market at display. I am not against free market, it is a good thing for business growth. But you have to be judicious in your investments and able to make strategic decisions well especially when you are competing with the likes of Ambanis and Mallyas.

Posted by   on (September 14, 2012, 20:10 GMT)

This is why we Indians should stop supporting the IPL and start supporting India in Tests and ODIs.

An IPL Franchise is a business, if it can't make money it will go bust. Indian cricket team is not a business, it is a cricket team with heart and soul. The Indian cricket team cannot get terminated.

Come on Indians, turn your back on the IPL, watch Test cricket and ODI cricket instead. It's much better.

Posted by pingili on (September 14, 2012, 20:08 GMT)

#IPL Miss u chargers tanks for ur lovely moments...:)

Posted by the_wallster on (September 14, 2012, 19:59 GMT)

But the good news is, Dan Christian is out of work.

Posted by   on (September 14, 2012, 19:55 GMT)

@Sunil Prasad - This is called business, and stuff happens. Every small little thing does not lead to apocalypse!

Posted by Kulaputra on (September 14, 2012, 19:54 GMT)

Considering that DC, KXIP, RR and RCB are in deep trouble one way or another and Kochi was expelled, it is obvious that IPL is not a viable product and is dying. Lalit Modi must be having a good laugh

Posted by   on (September 14, 2012, 19:53 GMT)

@Ankur Sengupta From what I understand from the news is that Deccan Chargers team is being sold for the losses because of their aggressive expansion plan in south india and not because they are in losses because of the Deccan chargers team itself.

Posted by bigwonder on (September 14, 2012, 19:50 GMT)

@vish2020, I double that. There is a huge demand for IPL in Gujarat, but we keep seeing new teams go to states that already have a team (a.k.a. Maha....)

Posted by   on (September 14, 2012, 19:45 GMT)

Another facet of IPL - its downside...

Posted by   on (September 14, 2012, 19:08 GMT)

The corporate associations investing in the IPL have to understand the fact that this is sports and you need to invest in it judiciously and scientifically. One cannot simply go ahead and keep buying players and build a star studed team with no teamwork at all. And this is what Deccan had done in the first few seasons. Sports is a long term investment and you cannot expect instant results. It takes time to pay back and you need to be patient.

Posted by Hafiz al raji on (September 14, 2012, 18:59 GMT)

R.I.P Decan Chargers.........

Posted by   on (September 14, 2012, 18:44 GMT)

Not good at all. So now what do we do with all the good merchandise we bought for DC? Doesnt look good for the IPL

Posted by   on (September 14, 2012, 18:39 GMT)

This is the start for the end of IPL

Posted by Thunee_man_Naidoo on (September 14, 2012, 18:33 GMT)

Why terminate the entire franchise and flush five years of advertising, team loyalty and crowd support down the drain? Surely a more realistic idea would have BCCI take control of the team and find a new owner

Posted by vish2020 on (September 14, 2012, 18:21 GMT)

Let's get a team in Gujarat!! Modi flex your arms, please!! Ahmedabad or Vadodara either one will be great!! market is huge and people are dying to get one

Posted by   on (September 14, 2012, 18:14 GMT)

@Sanya wat could have beeen worse miss hyd ?? :P hahah XD

Posted by Madhavan.Varun on (September 14, 2012, 18:14 GMT)

Can't say I am surprised... But disappointed none the less for my fellow DC supporters... They deserved better... Hope the new franchise does better...

Posted by   on (September 14, 2012, 18:12 GMT)

Wow...a Former Champion team to be terminated. Then again, They have nothing else to show.

Posted by Sakthiivel on (September 14, 2012, 18:11 GMT)

Well done BCCI. But feel sad for gayathri reddy.

Comments have now been closed for this article

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