The governing council of Kochi franchise has delayed its decision on the fate of new IPL franchise to December 5 and until that time Kochi has found some breathing space. The BCCI president, http://www.senore.com/Cricket/Shashank-Manohar-c89791, said at a media conference that owners of the
Kochi have recently submitted their new proposal in reply of board’s termination notice which focuses on the resolution of differences which are specifically on ownership pattern between Kochi owners and cricket board. He further said that council will not
be able to review and take any stance on Kochi’s response in the meeting on Saturday in Nagpur because before reaching to a final decision on Kochi board will take its lawyer’s opinions.
There have been many significant changes noticed as the new proposal of Kochi came out. New agreement says that Rendezvous which are the promoters of the franchise have come to an agreement that will lead to a lesser ownership stake of Rendezvous Sports
and will also allow its rival group of investors to have a bigger say in the administration and running of the company which is now named as Kochi IPL Cricket Pvt. Ltd. Manohar also confirmed the memorandum of understanding by saying that new stakes of Rendezvous
Sports are now diluted from 26% to 10% and they have also given many affidavits which are needed to be looked for the final decision on the fate of Kochi franchise.
One of the BCCI’s official told one news agency that the board is very cautious in making its final decision due to the conflicting letters and some other documents that it had been receiving for last couple of days. He said that BCCI wants to verify each
and every document from the day one as a part of sticking to the good administrative practice because they don’t want to sit for the final decision on the basis of documents received earlier and get something new later that, apart from hindering the resolution
of the problem timely, also wastes board’s resources. He also made clear that one week of extension in the final decision definitely does not mean that board is trying to find some replacement team for IPL by having a fresh auction process and board will never
just throw out the Kochi franchise for no reason. If the board is convinced enough on the point that the new franchise has a strong company structure then Kochi is definitely the ultimate choice for IPL. Coming to a resolution by owners of Kochi is first patch
up that has been seen since the day first when Kochi was formed. The prominent problem was the ownership pattern as investors were not happy about the 26% of the sweat equity given to Gaikwad family and others which are all part of the Rendezvous Sports World
for the services that it has provided for the successful bidding for the franchise. The investors Anchor Earth, Parinee Developers, Rosy Blue and Film Wave were holding remaining 74% of the equity but new proposal submitted to the board by Kochi’s owners dilutes
stakes of Rendezvous Sports World to 10%.
Initially IPL’s governing council in its emergency meeting which was held on 27th October had issued a notice to both the sides of the dispute that is there any reason to include the franchise in the league following their internal problems and
Kochi’s failure to build a good company structure till date. Chances of reaching a compromise by both sides seemed to be dark when BCCI president, Manohar got a letter by the investors that said that they are now going to withdraw their support to franchise
due to not reaching to a resolution with the promoting side of the franchise but now it seems that both factions at last came to resolution keeping in view the long-term benefits.
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