Sahara Group pulls out of IPL, Team India sponsorship

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The scandal-hit IPL on Tuesday suffered yet another blow with the Sahara Group-owned Pune Warriors India withdrawing from the cash-rich event due to Board of Control for Cricket in India's (BCCI) decision to encash the team's bank guarantee following a prolonged financial dispute. Sahara, which bought the franchise for Rs 1,700 crore in 2010, said it was "disgusted" by the BCCI's attitude towards it and will not rejoin the league even if the entire franchise fee was waved off, giving a new twist to the already troubled league which has seen a spate of controversies since its inception.

"We would not keep the IPL franchisee even if the entire franchisee fee is waved off. It is firm and final decision of Sahara to withdraw from IPL," the Sahara Group said in a lengthy statement, which explained the reasons for their pullout.

Sahara said it was peeved by BCCI's failure to initiate arbitration proceedings to lower their franchise fee despite several reminders.

"In 2010, Sahara had bid Rs 1700 crore for IPL franchise on the basis of revenue calculation on 94 matches. It was tricky on part of BCCI to put the number in media as 94 matches for getting bigger amount. But we got 64 matches only," it added.

Sahara claimed that the BCCI turned a deaf ear to its pleadings for arbitration and reducing the franchise fee.

"We and Kochi Team immediately protested and requested BCCI to reduce the bid price proportionately for viable IPL proposition. Nothing was heard. We waited with confidence that such a sports body should have sportsmanship spirit," it said.

"We continuously requested BCCI for arbitration from June 2011. But BCCI is only concerned about money and not about the genuine interests of the franchisee. Thus, (when) we could not penetrate BCCI's deaf ears, we announced our withdrawal in February 2012," it added.

Reacting to the development, IPL Chairman Rajiv Shukla said enchasing the bank guarantee were done as per rules.

"Yes, it (Pune Warriors) has pulled out. As per the rules and procedure of the BCCI if a franchise fails to pay the fee then we encash the franchise’s bank guarantee. We are extremely sad by their decision to pull out. This should not have happened," Shukla said.

Asked if Sahara's pullout will also affect the Indian team sponsorship, Shukla said, "I have no information regarding that."

Sahara's withdrawal will not affect their players since there will be an open auction for all the players in the next edition. All the Sahara Pune Warriors will be free to join the auction. Sahara Group said it was tempted to withdraw from the Indian cricket team's sponsorship also but refrained from doing so in the interest of the players.

"There is a very strong urge in us to withdraw from the Indian Cricket Team Sponsorship from today only. But, interest of the players will suffer if we do so.

"We share an excellent relationship with the players and will not want such dedicated and good human beings who serve the country so committed to get harmed financially due to unsporting attitude of BCCI," the Group said.

"So we have given time to BCCI to get the new sponsorship in place from January 2014, as we will continue the national team's sponsorship only up to December 2013 that's the expiry date of the present agreement."

Recollecting the 2012 withdrawals and the subsequent return, the Group said the BCCI did not keep its word with regards to arbitration.

"The BCCI approached us for a solution and requested us to not withdraw. After a series of discussions with the topmost BCCI officials including the BCCI President at Mumbai, a Joint Statement was issued by Sahara and BCCI in Feb 2012. The Joint Statement, amongst many other things, specifically mentioned the agreement to start Arbitration
proceedings through immediate appointment of an Arbitrator," it said.

"Sahara suggested the name of a retired hon’ble Chief Justice of India on March 5, 2012, to be appointed as the arbitrator. There was no response from BCCI for four months and after repeated prodding, finally on the 9th of July Sahara's advocates received a letter from BCCI rejecting the name proposed by Sahara without mentioning any reason and also without suggesting any alternatives," it added.