Deccan Chargers handed August 31 deadline for player payments – Cricket News Update
Indian Premier League franchise the Deccan Chargers have been handed an August 31 deadline by the IPL governing council in order to pay their contracted players their salaries for the 2012 tournament, and clear up their financial situation with the banks.
“The governing council asked the owners of Chargers to clear the players' payments as by this time usually almost 60-70% of the contractual amount usually gets paid. But the franchise had defaulted on that. Secondly, they need to sort out the financial mess
with the various banks to make sure the team remains unbothered. We need to protect both the IPL and the players,” said an official from the governing council.
Deccan Chronicle Holdings Limited, who own the rights to the franchise, were summoned to an emergency governing council meeting in New http://www.senore.com/Cricket/Delhi-c780 earlier this week, in order to discuss the issue of player payment delays and to give an explanation as to why the
team ownership rights had been mortgaged by the company with two prominent Indian banks.
Player payment delays have been a growing cause of concern following the culmination of this year’s 5th edition of the IPL in May. Along with the Royal Challengers Bangalore, players affiliated with the Deccan Chargers franchise have also not
been paid their salaries as yet.
The delay goes in violation of the payment schedule chalked out in every tri-partite IPL contract, which marks an agreement between the player, the franchise, and the IPL. This dictates that players must be paid 15% of their fee prior to the tournament,
or early into it (during April), 50% during the IPL or near its end (in May), 20% after the culmination of the Champions League Twenty20, and the remaining 15% by December 1.
In addition to the delays in paying contracted players, the Deccan Chronicle Holdings Limited have also been revealed to be caught in a financial mess. BCCI officials have confirmed that the ownership rights of the franchises belong to the board, and franchises
do not have the power to mortgage rights on their own.
The board has also revealed that the banks involved have sought the BCCI’s intervention to obtain all the money for the franchise, alleging that the Deccan Chronicle Holdings Limited had failed to clear their dues – a development which suggests that the
owners are embroiled in financial difficulties.
Following a check with the Registrar of Companies, the BCCI has discovered that Deccan Chronicle Holdings Limihttp://www.senore.com/Cricket/Thomas-George-Burrows-c93472ed have amassed borrowing charges of up to INR 3200 crore.
However, franchise owner T Venkatram Reddy downplayed the situation at the governing council meeting, and assured the board that player dues and the financial situation will both be cleared up by the August 31 deadline.
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