The working committee of the BCCI is set to decide the fate of the Pune Warriors franchise during its meeting in Chennai on October 26.
On May 21, a day after BCCI encashed the bank guarantee due to non-payment of franchise fees, Sahara Pariwar, the owners of the franchise, announced their intention to pull out of the IPL.
Despite a public announcement, Sahara still has not conveyed its decision to the BCCI. As a result, even though the franchise is technically a part of the IPL, it hasn't furnished the bank guarantee for Rs 170.2 crore (about $27.7m) required for it to be a part of the IPL's next season. While the BCCI has sent Sahara "several reminders" to submit the bank guarantee over the last five months, Sahara has declined to do so unless their "promised arbitration proceedings reach conclusion".
The BCCI feels it's time to take a call on Sahara's fate and send out a message that IPL 2014 preparations are well on course following the corruption scandal during the 2013 season. As a result, all the members of the governing council have been invited for the working committee meeting to decide on the fate of the Pune franchise.
Since most IPL officials are convinced that by not furnishing bank guarantee, Sahara has committed an "irremediable breach" of the franchise, the working committee may issue a 30-day "termination notice", thus marking the beginning of the end of Sahara's controversial three-season stint. "The fact that they haven't paid us ever since paying 30% before IPL 2013 makes it evident they are not interested in running the team," an IPL insider told ESPNcricinfo. "Otherwise, even after their bank guarantee had to be encashed in May, they wouldn't have not bothered to submit the fresh guarantee for the coming season."
Sahara's top brass, meanwhile, termed the planned move as a "bullying tactic" by BCCI. "We will not furnish the bank guarantee unless the arbitration that has been stalled for a couple of years is completed. In an IPL set-up that's completely lop-sided in BCCI's favour, someone needs to stand up to BCCI and we are doing it," a Sahara insider said.
Despite Sahara pressing for an arbitration into the demand of revision in annual fees, the fact that the franchise hasn't submitted the bank guarantee will edge them closer to an exit from the IPL. It would be interesting to see if the BCCI decides to replace Sahara with a new owner or trims the IPL to an eight-team affair. In either case, it will result in a considerable loss of income for the Board since Pune Warriors was the most expensive IPL franchise.
Since joining the IPL in 2011 by bidding $370m, Sahara had been demanding that the franchise fee from their original agreement be reduced since the minimum matches per year have been reduced from the 18 promised to them (the 2013 season had 16 league matches per team). As a result, both parties had agreed to initiate arbitration but the process hasn't yet started due to their disagreement over the judges to be appointed.
Pune Warriors' fate set to be decided
This article
Pune Warriors' fate set to be decided
can be opened in url
http://naturalherbmedic.blogspot.com/2013/10/pune-warriors-fate-set-to-be-decided.html
Pune Warriors' fate set to be decided
