Vastavam web: The BCCI is set to pay a huge compensation of more than Rs 800 crore to disbanded IPL franchise Kochi Tuskers Kerala for terminating their contract in 2011.”Kochi Tuskers has demanded Rs 850 crore as compensation. Today we discussed the matter at IPL GC meeting and we will now place the matter before general body. Let them take a call but obviously some negotiations are needed,” IPL chairman Rajiv Shukla said after the meeting.For the past two years, BCCI was adamant in neither paying compensation nor taking back the franchise in the IPL.
“We have to pay Kochi compensation. All legal options have been exhausted. Normally when arbitration decision goes against you, it will be stupid to move Supreme Court appealing against it. We have no option but question is how much,” an influential IPL GC member told PTI after coming out of the meeting.The decision to terminate Kochi contract was taken by then BCCI President Shashank Manohar citing breach of franchise agreement, something majority of BCCI officials were against.The BCCI will be trying to negotiate and bring down the compensation to an optimum level.
“Even then we will not be able to bring down to less than Rs 600 crore, I feel,” said the official, who had been associated with the case.
Meanwhile in another development, the BCCI will be earning a token amount of Rs 5 lakh from Chennai Super Kings (CSK) as a part of 5 percent earnings from total valuation of a franchise that transfers its ownership.As per IPL rules, any transfer of ownership will mean that BCCI will get 5 percent of the total valuation.Accordingly, BCCI is expected to get Rs 5 lakh and senior officials are not amused.