Mumbai: Challenge the Cricket Control Board of India (BCCI)’s decision to terminate all contracts, World Sports Group (WSG) made it clear that it will “take any necessary steps around the world to ensure agreements with our business and honor and compliance with our business…”
The implicit threat to legal action by WSG is a letter signed by WSG Chairman and CEO Seamus O’Brien, following the decision of the cricket committee on June 26 to cancel the contract with WSG, which grants sports management companies international media rights to the Indian Premier League, the popular Twenty20 Championship. BCCI’s decision is based on a promotion fee of 42.5 billion rupees paid by MSM Satellite (Singapore) PTE Ltd (MSMS), which is “incorrect” for broadcast media rights holders in WSG Mauritius Ltd subcontinent and that the amount is part of the board and is part on the right.
The letter clarified to N. Srinivasan Secretary BCCI that the board did not require any promotion fee. “On March 15, 2009, BCCI agreed to grant WSG Mauritius 47,9189 crore WSG Mauritius and on March 25, a MSMS signed a license agreement to pay BCCI Rs 47,9189 crore. No agreement was reached and WSG is likely to have been promoted (others) in a certain period compared to other scopes, which is a person who promotes (promotion). (or actually a sublicense to MSMS itself), and any margin is also our account and not BCCI.”
The letter also dismissed BCCI’s claim that it had “never understood” WSG’s agreement with Sony, saying the contract had been approved by the IPL’s board of directors.
BCCI clarified on Tuesday that it did terminate its contract with WSG. “I can only confirm that the international media rights with WSG have been cancelled,” Srinivasan said, adding that media coverage on international media rights is “all speculation” and he does not want to comment on it.
The WSG letter raised a questioning the board’s decision, claiming that the reason for the termination of the contract was “no more than support and unproven charges.” It added that despite the company’s repeated attempts to reach this issue, the board did not interact with WSG in any conversations seeking information or clarification.
It went on to say that the issue stemmed from a battle between the board and IPL Chairman and Commissioner Lalit Modi, who was reached during his tenure. “It is transparent to everyone now that the motivation to take this course of action is in the interests of the internal agenda. It is evident from global news reports that BCCI has been engaged in very public combat (with Modi) over the past few months. The letter also states that WSG is used as a “pawn” in the battle between BCCI and Modi.
Despite repeated attempts, other BCCI officials were unable to comment on the content of the WSG letter.
