The Board of Control for Cricket in India (BCCI) thwarted attempts of investment by Saudi Arabia in Indian cricket as it opted to remain a society in their latest AGM in Bengaluru on Sunday.
The BCCI was registered under Act XXI of 1960 at Chennai (Madras) on 28th November 1940 and subsequently registered under the Tamil Nadu Societies Registration Act, 1975, as per the board’s constitution.
According to sources, the necessity for such a resolution arose in response to media claims from last year that Saudi Arabia was interested in purchasing a multibillion-dollar stake in the Indian Premier League (IPL).
“The members unanimously resolved to maintain BCCI’s legal status as a society. The members further resolved that the tournaments of the BCCI, including IPL, shall not be converted to a company,” the resolution said.
According to a Bloomberg article from last November, Saudi Arabia was interested in making an initial investment of $5 billion to help extend the IPL into other regions. According to the article, the Saudi government wanted to convert IPL into a holding company worth up to $30 billion, with them owning a large interest.
“When the matter came up for discussion in the meeting, it was unanimously decided that a resolution be passed to protect the long-term interest of the board,” a member who attended the BCCI AGM said.
According to recent estimations, the IPL is the biggest cricket league, with an enterprise value of more than $10 billion. The BCCI’s decision comes at a time when other cricket boards and their constituents are open to commercial investment. Hampshire, an English county, revealed on Monday that it had sold a 100% share to GMR Group.
BCCI open to investment in IPL, but doesn’t want interference in its matters
Saudi Arabia’s massive sovereign wealth fund has anchored many of the kingdom’s mega-sports investments in football, golf, boxing, and other sports. Saudi Arabia is slated to host the 2034 FIFA World Cup; they own Newcastle United FC and spent millions signing players Neymar, Karim Benzema, and Cristiano Ronaldo in the Saudi Pro League.
The BCCI has opened doors to private investment by selling franchise ownership in IPL but wants no in-house interference.
“Any external entity will pump in money, yes. But once your autonomy is compromised, you lose control. It’s not that the BCCI was open to such a possibility. But now that there is a resolution passed, it will also work as a legal safeguard for future,” another official said.
Indian board officials say, the resolution to remain a society and not turn into a company would also serve future purposes if they had to deal with any disputes over tax liabilities.
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