BCCI defers decision on Kochi to December 5
The IPL governing council has
deferred its final decision on
Kochi franchise to December 5.
Shashank Manohar, the BCCI
president, said that the Kochi
owners had submitted their reply
on Saturday evening to the
board's termination notice asking
them to resolve their differences.
He said the council did not have
enough time to review Kochi's
response at its meeting in
Nagpur on Sunday morning, and
will seek the board's lawyers'
opinion before taking any
decision.
"They submitted a new
ownership pattern yesterday,"
Manohar said at a media
conference, immediately after
the hour-long meeting.
"We had no time to examine it.
All of you are aware that
everyday we are in court in a
legal battle and hence we would
like to have the opinion of our
legal experts before we take any
decision." As part of the new
agreement Rendezvous Sports,
the promoters of the franchise,
have agreed to shrink their
ownership stake to allow the
rival investors group to have a
bigger say in running of the
company, which will be now
called Kochi IPL Cricket Pvt.
Ltd.
"They have entered into an MoU
whereby the stakes of
Rendezvous is diluted from 26%
to 10%," Manohar said.
"They have also given various
affidavits which all need to be
looked into." This latest patch-up
among the owners is a fresh
twist to the long-running saga at
the Kochi franchise which has
been riven with differences right
from its day of inception.
The biggest problem has been
the ownership pattern with the
investors unhappy about the
promoters holding 26% of sweat
equity.
The investors in the consortium -
Anchor Earth, Parinee
Developers, Rosy Blue and Film
Wave -hold 74% of the equity.
The remaining 26% has been
given to the Gaikwad family -
Shailendra, his brother Ravi and
their parents plus a few others,
all part of Rendezvous Sports
World - as free equity for
services rendered in successfully
bidding for the franchise.
The league's governing council,
at its emergency meeting on
October 27, felt Kochi was far
from resolving those issues and
issued a notice asking both
factions to explain why the
franchise should not be
scrapped.
The chances of both factions
reaching a compromise seemed
bleak when the investors sent a
letter on Wednesday to
Manohar, stating that they were
withdrawing support to the
franchise because of the inability
to resolve the problems with the
promoters.
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