Sahara pulls out of IPL over financial dispute with BCCI

Sahara has pulled out of the IPL after a financial dispute with the BCCI. The decision was taken after Sahara Pune Warriors failed to pay the full franchise fee for the current year which resulted in BCCI encashing the bank guarantee.

“Yes, the BCCI has initiated procedure to encash the bank guarantee that has been deposited in order to procure Pune Warriors’ franchise fee for the current year,” a senior BCCI official told PTI today.

Sahara bought Pune franchise for a record Rs 1702 crore for 10 years. But they had a dispute regarding the reduction of the franchise fee as initially there were 94 matches which was later reduced to 74 matches. The issue hasn’t been resolved yet.

“In January this year, Sahara paid around 20 percent of the year franchisee fee which is approximately Rs 170 crore. The BCCI was told that they will pay the remaining amount by May 19 but they failed. The IPL governing council then decided to encash the bank guarantee.”

Sahara have also said that the BCCI will need a new sponsor for Team India in January 2014: “There is a very strong urge in us to withdraw from the Indian Cricket Team Sponsorship from today only. But, interest of the players will suffer if we do so. We share an excellent relationship with the players and will not want such dedicated and good human beings who serve the country so committed to get harmed financially due to unsporting attitude of BCCI.

“So we have given time to BCCI to get the new sponsorship in place from January 2014, as we will continue the national team’s sponsorship only up to December 2013 that’s the expiry date of the present agreement.”

Earlier, the BCCI’s decision to go ahead and encash the bank guarantee raised a question-mark whether the franchise will be a part of the seventh edition of Indian Premier League — and it has eventually led to a pull-out.

When BCCI treasurer Ajay Shirke was contacted in order to confirm the amount of bank guarantee, he refused to divulge any information.

This is not the first time that BCCI has encashed bank guarantees after franchises failed to cough up the fees. Kochi Tuskers Kerala and Deccan Chargers were disbanded from IPL after they failed to pay the required fees.

Pune Warriors’ performance has not been good in the three seasons of IPL that they have taken part as they remained in the bottom rung.

With inputs from PTI