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.

Pakistan vs Australia in UAE, 2014

Oct 30, 2014 (11:30 IST)   at Abu Dhabi

Sri Lanka tour of India, 2014

Nov 2, 2014 (13:30 IST)   at Cuttack

Zimbabwe tour of Bangladesh, 2014

Nov 3, 2014 (09:00 IST)   at Khulna

South Africa tour of Australia, 2014

Nov 5, 2014 (14:05 IST)   at Adelaide

Sri Lanka tour of India, 2014

Nov 6, 2014 (13:30 IST)   at Ahmedabad

More

West Indies tour of India, 2014

Nov 15, 2014  at Ahmedabad

Match cancelled

West Indies tour of India, 2014

Nov 7, 2014  at Bengaluru

Match cancelled

West Indies tour of India, 2014

Oct 30, 2014  at Hyderabad

Match cancelled

South Africa tour of New Zealand, 2014

Oct 27, 2014  at Hamilton

No result

Zimbabwe tour of Bangladesh, 2014

Oct 25, 2014  at Dhaka

Bangladesh won by 3 wkts

Photos

Pakistan vs Australia, 2nd Test

Videos

Tendulkar provides teaser on upcoming book

Live Cricket Score Duleep Trophy Central Zone vs South Zone, final at Delhi Day 4: KL Rahul brings up half-century; South Zone 73/0 after 18 overs

Live Cricket Score Pakistan vs Australia, 2nd Test, Day 3 at Abu Dhabi: Mitchell Marsh gets half-century

Don Bradman dismissed twice on the same day

Rohit Sharma looks to strengthen career after an inconsistent year

Yuvraj Singh — have we seen the last of the man who won India three World Cups?

Australia Australia tour of UAE 2014 Australia vs Pakistan Australia vs Pakistan 2014 Central Zone Duleep Trophy Duleep Trophy 2014-15 India Pakistan Pakistan vs Australia Pakistan vs Australia 2014 South Zone South Zone vs Central Zone Sri Lanka Sri Lanka tour of India 2014

South Africa vs West Indies 2014-15: Chris Gayle confident of West Indies touring South Africa despite dispute with WICB

India vs Sri Lanka 2014: Preparations for upcoming World Cup resume as Ind-SL face-off

Duleep Trophy 2014-15 final: South Zone 62/0 at Tea; need another 239 runs to win

Pakistan vs Australia 2014: Asif Iqbal claims Younis Khan’s brilliance should silence the critics

Australia 120/5 at lunch on Day 3 of 2nd Test vs Pakistan

Don Bradman dismissed twice on the same day

Virat Kohli’s captaincy opportunities important in context of India’s succession plans

Rohit Sharma looks to strengthen career after an inconsistent year

Younis Khan equals Javed Miandad’s record of most 150+ scores by Pakistan batsman

India vs Sri Lanka 2014: Manish Pandey showing signs of fulfilling potential

Fan of the Day

Niharika Shah

Niharika Shah

678 Posts | 6 Fans

Video Highlights: Younis Khan century during Pakistan vs Australia 1st Test at Dubai

Happy New Year 1st week box office: Shah Rukh Khan’s film collects Rs 157.57 crore at domestic box office

Beauty Tip #43 — Get fuller-looking lips with home-made sugar scrub

Google extends “Ok, Google” hotword to third-party apps with six lines of code

India vs Sri Lanka 2014: Preparations for upcoming World Cup resume as Ind-SL face-off

International programme in Animal Husbandry

Ayurvedic treatment: 7 types of Ayurvedic massages you should know about

Snapdeal faulty delivery: Man orders Samsung Galaxy Core 2 Duos, receives bar of soap instead!

Gmail for Android updated with Material Design UI and support for other email services

After Bollywood, even Hollywood praises Abhishek Bachchan’s Happy New Year performance!

Duleep Trophy 2014-15 final: South Zone 62/0 at Tea; need another 239 runs to win

Also on cricketcountry.com

Play Fantasy Cricket & Win

Cash Daily! Click here