Deccan Chargers in doubt for the next edition of IPL - Cricket News Update
Deccan Chargers is unlikely to make it to the sixth edition of the Indian Premier League, amidst reports that the franchise is up for sale, which could force the Board of Control for Cricket in http://www.senore.com/Cricket/India-c750 (BCCI) to look for a potential buyer in the coming days.
The franchise, which was acquired by the Deccan Chronicle group in 2008 for a sum of $107 million has been in a financial mess.
The group is facing a severe crisis at present after it mortgaged team assets, without BCCI’s consent, to the banks in order to raise funds.
In June, Religare Capital Markets Ltd was appointed by the Deccan Chronicle Holdings Ltd http://www.senore.com/Cricket/Thomas-George-Burrows-c93472o advice on selling it. T Venkattram Reddy, the Group Chairman, was quoted to be saying that they were in advanced discussions with various parties for the sale of
the IPL franchise.
While the formal announcement could take days, the governing body is likely to get an appropriate replacement as many business houses have shown keen interest in buying the Hyderabad-based franchise.
"The IPL governing council members will be meeting on September 4 where a concrete decision regarding the future of Deccan Chargers will be taken. As of now, there is very little chance that DC will be playing in IPL VI as it is unable to resolve the financial
problems. The Board will have to find a new buyer for the team," a Board said.
"Obviously, for a new investor, the advantage will be that he would get a set team and also can buy a few more players. The BCCI will encash the bank guarantee and pay the salaries of the players," the official further added.
In August, the BCCI had asked the franchise owners and bankers to clear all outstanding related to their mortgaged assets till August 13 or else the Board would terminate their IPL contracts.
The bankers, on the other hand, are not keen to surrender their assets and insisted on having a right on revenues, earned by the franchise through ticket sales and sponsorships.
Some sources said that only one financial firm and two banks have the right on the franchise’s revenues as collateral against their loans, after Deccan Chargers borrowed Rs 3200 crore from 28 lenders.
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