Despite suspension, CSK and RR to pay IPL participation fees
According to a report, both the teams would be paying a participation fees of Rs 72 crore and Rs 56 crore, respectively for the upcoming 2016 and 2017 seasons.
New Delhi: Suspended Indian Premier League (IPL) franchises Chennai Super Kings (CSK) and Rajasthan Royals (RR) would be required to pay participation fees, thanks to a ten-year contractual obligation.
According to a report in The Hindu, both the teams would be paying a participation fees of Rs 72 crore and Rs 56 crore, respectively for the upcoming 2016 and 2017 seasons.
“We will be sending an invoice to the two franchise owners whenever it’s due. They have only been suspended for misconduct by their officials, and in order to maintain the franchise agreement for ten years, they have to pay to the BCCI the franchise participation money. Otherwise they will be deemed as defaulters,’’ the report quoted a senior BCCI official as saying.
Both the franchises, which have been part of the cash-rich tournament since its inception in 2008, were suspended for two years (2016-17) by a Supreme Court-appointed probe committee, for betting by its owner-representatives in IPL 2103.
But the two franchises will not be entitled to their yearly revenue share as devised by the Board of Control for Cricket in India (BCCI), as with the two new franchises which have earned the rights to replace CSK and RR for these two years.
“We don’t have to pay the compensation money to CSK and RR and also the two new franchises (New Rising of the RP-Sanjeev Goenka Group and Intex Mobiles). We will receive Rs. 26 crore for each of the two seasons (2016 and 2017) from these two,’’ the report further quoted an BCCI official.
The IPL franchises each had received around Rs. 75 crore as part of their share of compensation from the central pool.