Mumbai: Challenging the Board of Control for Cricket in India’s (BCCI) decision to terminate all contracts with it, the World Sports Group (WSG) on Tuesday made it clear that it will “take all necessary steps in any part of the world to ensure that agreements with our business are respected and adhered to…”
The veiled threat of legal action by WSG came in a letter signed by WSG chairman and chief executive Seamus O’Brien, which followed the cricket board’s June 26 decision to terminate WSG’s contract giving the international sports management firm media rights to the Indian Premier League, the popular Twenty20 tournament. The BCCI’s decision was based on the fact that the facilitation fee of Rs 425 crore paid by MSM Satellite (Singapore) Pte Ltd (MSMS), subcontinent broadcast media rights holders WSG Mauritius Ltd, was “improper” and that the amount belonged to the board of directors as part of the rights fee.
The letter addressed to BCCI secretary N Srinivasan clarifies that the board has no claim on the facilitation fee. “On 15 March 2009, BCCI agreed to license the Indian media rights to WSG Mauritius for Rs 4,791.89 crore and on 25 March, MSMS entered into a licensing agreement by paying BCCI Rs 4,791.89 crore. If the agreement had not been concluded, WSG would have most likely sub-licensed (the rights to) one of the other broadcasters with which it was in negotiations during this period.” (or indeed sub-licensed to MSMS itself) and any margin would also be in our account and not in the BCCI account.”
The letter also refutes BCCI’s claims that the company was “never notified” of WSG’s agreement with Sony, asserting that the contract was ratified by the IPL Governing Council.
The BCCI, for its part, clarified on Tuesday that it had indeed terminated its contract with WSG. “All I can confirm is that the international media rights with WSG have been cancelled,” Srinivasan said, adding that media reports of a re-tendering process for international media rights were “all speculation” and that he did not want to comment on it.
WSG’s letter challenged the board’s decision, arguing that the reasons for terminating the contract were “nothing more than unfounded and unsubstantiated allegations.” He added that the board has not entered into any conversation with WSG to seek information or clarification on the matter despite the company’s repeated attempts to contact him.
It further said that the issue arose due to a fallout between the board of directors and former IPL chairman and commissioner Lalit Modi, during whose tenure the deal was struck. “It is now clear to all that the motivation for taking this course of action is in the service of a domestic agenda. It is clear from global press reports that over the past few months the BCCI has been engaged in a very public battle (with Modi)…” The letter also states that WSG is being used as a pawn in the fight between the BCCI and Modi.
Other BCCI officials could not be reached for comment on the contents of WSG’s letter despite repeated attempts.