Sri Lanka television dispute closer to settlement

A complex television dispute that could have jeopardised coverage of England 's tour to Sri Lanka now looks to be nearing a settlement following the decision by Sri Lanka Cricket (SLC) to call for "expressions of interest" from companies interested in securing television, sponsorship and broadcasting rights for a new three-year period starting from 01 January 2004.

The SLC announcement on Friday morning means that the current three-year contract with Dubai-based Taj Television, which had previously been described as "null and void" by cricket officials, will not run for its full duration. The contract, signed in 2001 by a government appointed interim committee, had included tours to Sri Lanka by Australia and South Africa in 2004.

However, it is unclear whether the contract period was reduced with agreement from Taj Television, or whether the current contract will be recognised for the forthcoming England tour in November. The cricket had been considering a one-tour agreement with Singapore-based WSG Nimbus to reduce a potential multiple-million dollar payout.

A Singapore court had ruled earlier in the year that WSG Nimbus were due financial damages after Sri Lanka Cricket (previously known as the BCCSL) had "unlawfully" terminated a three-year broadcasting and sponsorship contract in 2001. WSG Nimbus claimed USD $ 18 million according to board sources. The court will announce the exact damages to be paid shortly.

Once the damages are announced, the cricket board will finalise ongoing discussions with both WSG Nimbus and Taj Television. The objective will be a solution that minimizes the potential financial losses and future liability. The board will be walking a tightrope: awarding rights to WSG Nimbus for the lucrative England series may reduce their damages claim but that is also likely to prompt a legal battle with Taj Television.

An amicable comprimise with Taj Television - an organisation that has strong connections with Sri Lanka cricket because of the CBFS-organised tournaments in Sharjah - remains a possibility. They though are unlikely to consider dropping their claim to the England tour, which is already being advertised and is by far the most valuable tour in the three-year contract period.