Deccan Chargers contract terminated

The Board of Control for Cricket in India (BCCI) has scrapped the licence of the Deccan Chronicle Holdings (DHCL)-owned Deccan Chargers franchise of the Indian Premier League (IPL). According to media reports, at an emergency meeting of the IPL governing council on Friday, it was decided the franchisee’s contract would be terminated.

The BCCI’s working committee is scheduled to meet in Chennai tomorrow to decide on whether to include a new team in the IPL or make do with only eight teams. Speculations are rife the BCCI may also announce another auction for a new city franchise.

The cash-strapped Deccan Chargers has been scouting for a buyer and had also invited bids for this. However, yesterday, the owners had rejected the sole takeover bid of Rs 900 crore from PVP Ventures, which has interests in real estate and film financing.

THE RISE & FALL OF DECCAN CHARGERS

• Deccan Chronicles acquired Hyderabad franchise for $107 million
• Came last in the inaugural IPL in 2008
• Winners of the second season in 2009 in South Africa
• Finished second-last in 2012 edition of IPL
• Ex-CEO Timothy Wright, after winning in London Court, dragged DCHL to a Hyderabad court seeking around £10.55 million (Rs  97.55 crore) for breach of contract
• DCHL announces auction of the team on 6 September
• Promoters rejected the Rs 900-crore bid from PVP Venture Capitals on 13 September
• BCCI terminates contract on 14 September

Deccan Chargers’ woes began after its promoters had mortgaged team assets to banks to raise funds. This was despite IPL norms stating teams and their assets could not be mortgaged. Bankers argued the rules did not prevent them from a right on Deccan Chargers’ revenue through sponsorship and ticket sales.

On September 6, Deccan Chargers had issued a tender notice stating, “Under this invitation to a tender issued by DCHL, the winning bidder would acquire from DCHL on an ‘as-is-where-is’ basis the right to own and operate the IPL team currently known as Deccan Chargers.”

DCHL has also failed to clear payments to players. According to a report quoting the Department of Financial Services, the company’s debt stands at about Rs 5,000 crore. Two private sector banks and a financial services firm had the right on Deccan Chargers’ revenue as collateral against their loans, reports stated.