Suspended IPL franchises Chennai Super Kings and Rajasthan Royals have moved to the court after they were asked to pay the IPL fees to the BCCI despite not playing.
Chennai Super Kings and Rajasthan Royals were suspended for the 2016 and the 2017 seasons of the Indian Premier League, by the Supreme Court-appointed RM Lodha panel.However, they were informed by the BCCI to pay the participation fees for 2016 as well as 2017.
While the Super Kings have been asked to shell out Rs 73 crore over the next two years, Royals need to pay Rs 56 crore as franchise participation fees.
“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 arbitrations 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?”
Reports have also suggested that both the franchises made their first installments before deciding to approach the court.
“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.
Except for Rising Pune Supergiants and Gujarat Lions who represent Rajkot, the two new IPL franchises in IPL 9, the IPL rules state that the rest have to pay one-tenth of their original bid amounts over a 10-year-period starting from 2008.