All the signatories to present themselves before IPL governing council in Nagpur today; new formula dilutes the stake of RSWPL.
“It’s on,” screamed a Team Kochi insider. He was confident that the governing council of the Indian Premier League (IPL), which will meet in Nagpur today, will give it a thumbs-up.
It may be a tad early to say the team is on, but the turn of events in the last 24 hours has been more positive than negative for the Kochi consortium members, who have been fighting over various issues for the last eight months. On Saturday, all of them came together and put up a united front, as demanded by the Board of Control for Cricket in India (BCCI) through its termination notice last month.
The ball is now in the BCCI court. The Board president Shashank Manohar is believed to have asked the consortium partners to make their point before the members of the governing council on Sunday. All the original signatories of the franchise that won the bid in March have rushed to Nagpur to show to the Board, and also to the world, that they are united. How effective this new show of unity will prove with the BCCI is not known but the Kochi members are likely to face a grilling. “We’ll be there. We were two till yesterday. From Sunday, we will be one,” said a Kochi insider.
According to sources, the hitherto disparate members of the team resolved a lot of vexing issues, especially their disagreements over sweat equity. As per the new agreement that has been reached, the sweat equity of Rendezvous Sports World Pvt Ltd (RSWPL) will come down from 25% to 10%. The remaining 15% will be disbursed to other investors. Besides, the RSWPL has also agreed to drop its demand that it will supply the CEO of the consortium and in return, it has been granted two board memberships.
“We were looking for a long-term solution. The existing agreement with 26% to RSWPL was sustainable and the incentives were not aligned properly,” said a source close to the investors.
The investors, who have been holding 74% of the shares, insisted that they should be allowed to run the team the way they want to. Mukesh Patel of Parinee Developers was the leader of this group which made it clear that either the team is run by them or it is gone. Left with no choice, RSWPL relented on its demands for 26% equity which would have included 16% paid shares. But the investors were not willing to budge from their hard stand
The agreement was finally reached early on Saturday. The investors, who had earlier submitted a letter asking the BCCI to take the team away from them, sent another letter stating that they were withdrawing the
previous letter.
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