BCCI to lose Rs. 1000 crores in new revenue sharing model- PIL

April 19, 2016 10:08
BCCI to lose Rs. 1000 crores in new revenue sharing model- PIL

According to PIL in Madras high court, BCCI will end up facing at least Rs. 1000 crore loss, due to chief Shashank Manohar’s unilateral offer to take 6% cut in revenue sharing model.

BCCI, which is entitled to 21% of gross revenue of ICC, for the broadcast cycle of 2015-2023, now losing Rs. 1000 crores, is something, which cannot be ignored.

The first bench comprising Chief Justice Sanjay Kishan Kaul and Justice S Vaidyanathan, clearly not inclined to entertain the PIL and pass any interim orders yesterday. They however gave time for the petitioner's senior counsel till Wednesday, to get instructions on withdrawing the PIL.

Ex-CBI director R K Raghavan and eight others who called it as “nothing short of a scam,” filed PIL which said, during the next broadcast cycle of 2023-2031, BCCI would end up losing another Rs 2,000 crore due to the controversial, and unilateral, financial reorganization offer of BCCI president Shashank Manohar.

There are several compelling reasons to rework the sharing of ICC revenue, few of which are, the Indian market contributing more than 80% of the revenue generated by the world cricket and Indian sponsors contributing almost entire sponsorship revenue.

As the circumstances are in this way, in February 2014, ICC’s 10 full members of test cricket nations, agreed to pay a percentage of its (ICC) revenue to BCCI. It was also decided that, BCCI would be entitled to 21% of gross revenue of ICC for the 2015-2023 cycle.

The current BCCI chief obtained an approval from the general body to 'negotiate downward revision' of BCCI's revenue from the ICC.

This decision came as a shock to Tamilnadu Cricket Association (TNCA), who then wrote to the BCCI, complaining that, the mandate would result in a loss of Rs 3,000 crore to BCCI till 2031.

The present PIL, which had 8 others including umpire C R Vijayaraghavan and player D Vasu as signatories, said, “It remains a mystery as to how the BCCI chief Shashank Manohar could on his own propose such a monumental reduction in the BCCI's revenue from ICC funds guaranteed by contract, and get authorized to negotiate downward revision with other ICC members, as if there is some imminent threat to the fortunes of BCCI. He had not placed the participation agreement and its binding terms before the BCCI general body, the PIL said, adding, "they are compelled to approach the high court since there is an imminent threat to the economic interest of the BCCI.”

The PIL said that, BCCI cannot be treated as a private club with private members and cannot be allowed to act in any manner, leaving no room for the judicial scrutiny of their whimsical and fanciful conduct.

Other countries will gain at the cost of India, if the BCCI’s revenue model is re-worked, it further said.

PIL further wanted the court to restrain BCCI officials, from accepting to receive any amount lower than the agreed contribution costs as per the member participation agreement for the broadcast cycle for the periods 2015-2023 and 2024-2031, for the participation of Indian cricket team in matches/events conducted by the ICC.

BCCI Chiefs, unless judicially restrained, might make commitments even ahead of the ICC meeting scheduled to be held this month, it said.

By Phani Ch

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