CVC Sports yet to receive Letter of Intent from the BCCI

CVC Sports yet to receive Letter of Intent from the BCCI

CVC Capital Partners had come into the limelight owing to their links with betting companies abroad.

BCCI IPL Bihar
A view of logo of the Board of Control for Cricket in India (BCCI). (Photo by Aniruddha Chowhdury/Mint via Getty Images)

The Board of Control for Cricket in India (BCCI) had earlier announced the bidders for two new Indian Premier League franchises. However, the board has been, reportedly, looking into the new IPL franchise CVC Capital’s business links. According to the recent turn of events, there has been a delay from BCCI’s end in giving the Letter of Intent to CVC sports.

The board had announced that Lucknow and Ahmedabad are the two teams that will feature in the next edition of the IPL. RPSG Group made the highest bid for INR 7,090 crores for the Lucknow franchise whereas, on the other hand, CVC bagged Ahmedabad for INR 5,625 crores. The private equity firm CVC Capital Partners had however come into the limelight owing to their links with the betting companies abroad.

BCCI yet to reveal the last word on CVC sports

The CVC sports is trying to explain to the officials of the board that its investment in a UK betting firm is not illegal. As per reports, CVC officials have traveled to India and to Dubai as well to have a word on this with the BCCI office-bearers and officials. There have also been discussions that another round of talks can take place between the concerned officials in the next day or two.

BCCI’s legal team has taken the mantle to dig deeper in this case and there are possibilities that a committee might also be formed in order to look after this matter. According to the BCCI insiders, the bidding parties were previously informed that there will be a proper study on their business roots later as examining the same on the auction day itself was not possible.

The CVC firm hasn’t opened up on this matter yet but there have been certain talks that the decision might fall in their favour. Sources close to the American investors claim that quite a few major foreign companies including one of the stakeholders of the BCCI may have made investments in the betting companies. They also stated that it is not an unusual thing by any means.

Previously, the board was placed under major scrutiny for allowing the entry of the CVC Capital firm in the IPL. Lalit Modi had also taken a dig at the board and had questioned its decision on the same.