Chennai Super Kings refuses to pay 5% entitlement fee to the BCCI

Chennai Super Kings are all set to make a comeback in the Indian Premier League next year. However, recently there has been some confusion regarding the ownership pattern which has led to a little bit argument with the Board of Control for Cricket in India.

As per the agreement in the contract, if there is a change in ownership or control of a franchise, 5% of the transacted money should be paid to the BCCI. Recently, Chennai Super Kings which is owned by India Cements transferred 29% of its share to former cricketers of Tamil Nadu. While the BCCI has asked for its entitlement, the CSK administration is adamant and clarified that there hasn’t been any change of control.

Word From The Team Management

“The CSK is owned partly by the India Cement shareholders (71 percent) and partly by the former cricketers. Mr Srinivasan has transferred his 29 percent shares to former cricketers of Tamil Nadu. We have informed the BCCI that it is a rearrangement of ownership pattern and not total transfer of control,” said a CSK official as quoted by Bangalore Mirror.

Governing Council To Decide In The Upcoming Meeting

As both CSK and BCCI continue to differ on these issues, the IPL Governing Council is supposed to address and clarify the rules regarding new ownership pattern, valuation and transaction fee for the BCCI in the meeting on 24th October.

This meeting is expected to be followed by a meeting of the Committee of Administrators (CoA) to lay down the ground rules for the upcoming IPL season. Most of the teams are divided over the retention policy as well as the total purse value for players in the auction.

Thus, all the concerns are expected to be resolved in this meeting between the team owners and the COA. There has been a lot of excitement for next season of the Indian Premier League with two teams back in the fray after what was a 2-year ban.

Talking about the ownership issue, the BCCI may have well sought a legal opinion on this and the meeting of the General Council is likely to decide the control and valuation issues. CSK has continued to maintain the stance that there is no change in value but the BCCI might end up levying the five percent fee as per the current valuation