Play Fantasy Cricket & Win

Cash Daily! Click here

Home > News >

Supreme Court allows arbitration between WSG, MSM on IPL broadcast rights

The controversy over the Rs 425 crore facilitation fee erupted after BCCI ousted IPL Commissioner Lalit Modi, alleging financial irregularities in the media-rights deal signed by him, among other things © AFP
The controversy over the Rs 425 crore facilitation fee erupted after BCCI ousted IPL Commissioner Lalit Modi, alleging financial irregularities in the media-rights deal signed by him, among other things © AFP

 

New Delhi: Jan 24, 2014

 

The Supreme Court on Friday allowed World Sport Group to go ahead with the arbitration proceeding against MSM Satellite, earlier known as Sony Entertainment Television, pertaining to the facilitation fee dispute for acquiring broadcast rights for the Indian Premier League (IPL).

 

A bench of justices AK Patnaik and Fakkir Mohamed Ibrahim Kalifulla set aside the Bombay High Court order restraining World Sport Group (Mauritius) from proceeding with the arbitration.

 

While WSG wanted the dispute to be resolved through arbitration in Singapore, as agreed in the contract between the parties, MSM insisted that it should be decided in a regular trial before the court. The companies have fallen out over a facilitation fee deal for the media rights for the IPL.

 

The court passed the order on an appeal filed by WSG against the division bench verdict of the high court which had set aside the order passed by a single judge bench allowing the arbitration.

 

“We allow the appeal, set aside the impugned judgment of the division bench of the high court and restore the order of the learned single judge,” the bench said.

 

“It has been rightly held by the learned single judge of the Bombay High Court that it is for the arbitrator to decide this dispute in accordance with the arbitration agreement,” it said.

 

According to a deal inked in 2009, MSM Satellite was to pay Rs 425 crore to WSG to acquire the global rights to broadcast the IPL 20-20 cricket tournament.

 

However, the Board of Cricket Control in India (BCCI) later wrote to MSM Satellite on May 30, 2010, stating that WSG had no role to play in execution of the contract and hence, the “facilitation fee” of Rs 425 crore was to be paid to the BCCI.

 

Given the directive, MSM Satellite had stopped payment to WSG, though it had already handed over Rs 125 crore. MSM Satellite went on to renegotiate a direct nine-year contract with BCCI for the worldwide telecast rights to the IPL for Rs 8,200 crore.

 

Subsequently, WSG initiated arbitration proceedings against MSM Satellite, claiming it was the original buyer of the worldwide telecast rights for the IPL between 2008 and 2017 for over USD 1 billion and was entitled to the facilitation fee.

 

Earlier, allowing the appeal of MSM Satellite, a division bench of Bombay High Court had on September 17, 2010, set aside the order of its single-member bench and restrained WSG from continuing with the arbitration proceeding.

 

The controversy over the Rs 425 crore facilitation fee erupted after BCCI ousted IPL Commissioner Lalit Modi, alleging financial irregularities in the media-rights deal signed by him, among other things. The BCCI had raised objections and claimed that any such fee should have been paid to it.

 

Indian T20 League 2014

Apr 17, 2014 (20:00 IST)   at Sharjah

Indian T20 League 2014

Apr 18, 2014 (16:00 IST)   at Abu Dhabi

Indian T20 League 2014

Apr 18, 2014 (20:00 IST)   at Abu Dhabi

Indian T20 League 2014

Apr 19, 2014 (16:00 IST)   at Dubai

Indian T20 League 2014

Apr 19, 2014 (20:00 IST)   at Dubai

More

Indian T20 League 2014

Apr 16, 2014  at Abu Dhabi

Kolkata Knight Riders won by 41 runs

Womens World T20, 2014

Apr 6, 2014  at Dhaka

Australia Women won by 6 wkts

T20 WC 2014

Apr 6, 2014  at Dhaka

Sri Lanka won by 6 wkts

Womens World T20, 2014

Apr 4, 2014  at Dhaka

England Women won by 9 wkts

T20 WC 2014

Apr 4, 2014  at Dhaka

India won by 6 wkts

Photos

Duke and Duchess of Cambridge play cricket

Videos

Video Highlights: Mumbai Indians vs Kolkata Knight Riders wickets

IPL 7: Vintage Jacques Kallis showed his class for Kolkata Knight Riders against Mumbai Indians

IPL 2014: Onus on Chris Gayle to take Royal Challengers Bangalore all the way

IPL 2014: Capacity crowd at UAE provides glimpse of the T20 league’s huge following

Narendra Modi’s tea-vendor origin influences MS Dhoni in calling laundrymen to clean up BCCI mess

Delhi Daredevils vs Royal Challengers Bangalore IPL 2014 Preview: RCB have advantage over DD sans Kevin Pietersen

Australia BCCI Delhi Daredevils England India IPL IPL 7 IPL 2014 Kolkata Knight Riders Lasith Malinga Moments in history Mumbai Indians Mumbai Indians vs Kolkata Knight Riders Royal Challengers Bangalore Sachin Tendulkar

IPL 2014: P S M Chandran appointed as dope control officer by BCCI

Delhi Daredevils (DD) vs Royal Challengers Bangalore (RCB) Live Scorecard IPL 2014: Match 2 of IPL 7 at Sharjah

Live Cricket Score IPL 2014: Delhi Daredevils (DD) vs Royal Challengers Bangalore (RCB) match 2 of IPL 7 at Sharjah

IPL 2014: Mumbai Indians vs Kolkata Knight Riders stats review, Match 1

Yuvraj Singh found it difficult to cope with ICC World T20 2014 final loss

Sony launches ‘IPL Smart Earphone’ to filter crap commentary; calls endeavour CSR

IPL Statistics and Records: IPL’s First

IPL 2014: Umpire Camera View creates latest buzz in tournament

Delhi Daredevils’ strong bench filled with talented Indian players could be key to success in IPL 7

IPL 7: Vintage Jacques Kallis showed his class for Kolkata Knight Riders against Mumbai Indians

Fan of the Day

Sudatta Mukherjee

Sudatta Mukherjee

1 Posts | 0 Fans

Mumbai Indians vs Kolkata Knight Riders IPL 2014 Video Highlights

Know your sex position: The Plough

Sunny Leone, not Alia Bhatt a stressbuster for 2 States author Chetan Bhagat

Sony launches ‘IPL Smart Earphone’ to filter crap commentary; calls endeavour CSR

Google Glass white “Cotton” variant becomes star of the single day sale

Sussanne Khan retains Hrithik Roshan’s surname even after separation!

Fever in children – 6 ways to deal with it

Delhi Daredevils (DD) vs Royal Challengers Bangalore (RCB) Live Scorecard IPL 2014: Match 2 of IPL 7 at Sharjah

Google’s shares fall after the company misses Q1 profit estimates

Also on cricketcountry.com