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CSK, RR Move Court After Being Asked to Pay Franchise Fees

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File photo of CSK and RR Logo (Twitter)

File photo of CSK and RR Logo (Twitter)

According to a report in the Indian Express, the two franchises had been handed the penalty last year by the Lodha committee.

Indian Premier League suspended franchisees Rajasthan Royals and Chennai Super Kings have moved court for arbitration against paying the IPL franchise fees to the Board of Cricket Control in India (BCCI) despite being suspended from participating in the tournament for two years.

According to a report in the Indian Express, the two franchises had been handed the penalty last year by the Lodha committee. The Indian cricket board had informed both the franchises subsequently that they would have to continue paying the participation fees every year so that their teams remain part of the IPL fabric.

CSK and Rajasthan were asked to shell out Rs 73 crore and Rs 56 crore respectively per year despite not being part of IPL.

“Yes, we moved the Bombay High Court in April, seeking to resolve the dispute over the payment of the franchise fee through arbitration. Rajasthan Royals, too, did the same and both arbitration have been held simultaneously. The oral hearings are over but some technicalities remain. So it might take at least another two-three months to reach a verdict,” Chennai Super Kings manager George John told The Indian Express. "Our logic is simple; why shall we pay the franchise fee, when we are not playing?"

Both franchises made their first installments before deciding to go in for arbitration.

“They had paid us the first installment under protest. They felt it was unfair on the part of BCCI to ask for franchise fees. We had made it very clear that the board will not bear the loss. The image of the BCCI has already taken a big hit after the whole spot-fixing scandal. If they want to remain a part of the league, they will have to continue paying the fees,” a top BCCI official said the newspaper.

first published:May 26, 2016, 12:11 IST
last updated:May 26, 2016, 12:11 IST