BCCI likely to suffer Rs 2000-crore loss from Kochi termination

The BCCI terminated the contract of Kochi last month, after it defaulted on a Rs 156-crore annual payment AFP

By CricketCountry Staff

Mumbai: Oct 17, 2011

The Board of Cricket Control in India (BCCI) is likely to suffer lose of Rs 2,000 crore due to the termination of the Indian Premier League team Kochi Tuskers Kerala following breach of contract.

“With Kochi now being terminated and IPL 5 being a nine-team affair, the board could estimate further losses in terms of media rights, revenues from number of matches and stadia. The estimated loss is Rs 2,000 crore,” said a senior BCCI official.

The BCCI terminated the contract of Kochi last month, after it defaulted on a Rs 156-crore annual payment.

According to the agreement, each franchise has to submit a bank guarantee every year that covers the fee payable to BCCI.

BCCI said the irremediable breach committed by the Kochi franchise had prompted the board to decide on encashing the bank guarantee in its possession and terminate the franchise.

The franchise has been in trouble due to a lack of clarity in the team s ownership pattern, a series of spats between its owners on shifting its base to Ahmedabad and also tussles within the Kerala Cricket board.