CNN-IBN has learned that termination of the Hyderabad-based IPL franchise is likely to be on grounds of a breach of contract.
New Delhi: A day after the cash-strapped Deccan Chargers went unsold in an auction in Chennai after the team's owners and lenders rejected the only bid of Rs 900 crore from a Hyderabad-based filmmaker and financier, CNN-IBN has learned that the BCCI is likely to scrap the IPL franchise.
According to sources, the termination will be on grounds of a breach of contract and a new auction for a new city franchise likely to be announced. The decision is likely to come at the BCCI’s special general body meeting in Mumbai on Saturday. CNN-IBN has also learned that five or six new cities are likely to be announced and that the highest successful bidder will get the city of their choice.
Sources have also told CNN-IBN that PVP Ventures offered Rs 900 crore through a staggered payment module, in which Rs 450 crore were offered to be paid through a period of five years, with Rs 90 crore each year. The remaining Rs 450 crore were to be given in the form of convertible debentures, payable after five years.
It is also learned that PVP Ventures offered to clear the outstanding players' salaries amount of Rs 36 crore immediately. However, it has been learnt that it all fell through after the concerning banks asked for a bank guarantee of Rs 450 crore upfront - that the bidder refused, resulting in the bid being rejected.
The situation has now entered to a point of no-return for the Deccan's management. Be it a miracle, or a new benefactor, the franchise is now racing against time to try and save itself from being consigned to the history books of the IPL.
After struggling on the field for two seasons, Deccan have been blighted by management woes after it was revealed that several players had not been paid their salary dues due to the financial trouble of the franchise’s present owners, the media company Deccan Chronicle Holdings (DCH).