BCCI may have to forego guarantee money

The Board of Control for Cricket in India (BCCI) may have to forego at least part of its guarantee money from the recently concluded World Cup in South Africa. The International Cricket Council (ICC) had initially withheld the money, fearing that the event sponsors would ask for compensation, citing alleged breach of contract by the Indian cricketers.

The Global Cricket Corporation (GCC), who were the sponsorship rights holders for the World Cup, have been approached by some of the sponsors - LG, Hero Honda and Pepsi were among them - who are demanding compensation because the Indian team refused to play under the terms originally agreed with the ICC. Word has it that the firms made their claims even before the first ball was bowled in South Africa, once they were aware that the Indians would not honour the original contracts.

LG even confirmed that it was "suitably compensated" by the GCC before the start of the World Cup. However, an ambush marketing claim that they filed with GCC during the event is still pending.

The GCC has confirmed that it was facing compensation claims. Speaking to an Indian newspaper, Ian Frykberg - one of the directors - said, "Some of the sponsors are seeking compensation from GCC. The amount of compensation being sought by the sponsors from GCC is still under consideration. GCC will be seeking to pass any compensation on to the ICC because the matter was outside the GCC control."

Brendan McClements, the ICC spokesperson, said, "Only after this process has been determined, will the ICC seek to determine which individual country is responsible for any compensation claims that were successfully laid against the ICC."

The embroglio was the result of Indian cricketers refusing to agree to several clauses in the Players' Terms form of the Participating Nations Agreement, which they insisted amounted to restraint of trade. Negotiations dragged on for months, but the ICC finally allowed India to play after the players signed amended forms. It was made clear even then though that they would withhold the BCCI's money to pay for any compensation claims made against them.

The BCCI had threatened to approach the Court of Arbitration in Sport (CAS) at Lausanne to resolve the dispute, but thus far, neither they nor the ICC have taken any concrete steps in this regard.

"Given the complicated process, it is likely to be some time before this dispute is current and the ultimate process by which this will be determined will be resolved once the other stages of the process have been resolved (i.e sponsor claims against GCC, GCC claims against ICC then ICC claims against a member where that member is alleged to have caused the breach)," said McClements.

"BCCI has proposed the Court of Arbitration in Sport as a possible route in the past, and the ICC is yet to determine if this is the appropriate forum to resolve the matter."

The guarantee money due to the BCCI comes to about 9 million dollars. It might take up to a year for them to see even a fraction of that.