Sun TV Network Wins Hyderabad IPL Franchise Bid


Sun TV Network has won the Hyderabad Franchise for an amount of  85.05 crore per year. This Franchise fee represents a premium of over a 100 % above the amount paid by Deccan Chronicle Holdings (DCHL) for the Hyderabad Franchise in 2008.

The IPL Governing Council met on Thursday to open the bids for the new IPL franchise and Sun TV was found to have the highest bid amount. PVP Ventures had the second highest bid at 69.03 crores. According to a report by The Hindu, BCCI had kept the base price for the bid at Rs 60 crore, per year. Interestingly, the previous owner of the Hyderabad franchise, Deccan Chronicle holdings, had bought the franchise for Rs 428 crore in 2008 for a period of 10 years.

Previous developments: In June 2012, plagued by financial troubles, Deccan Chronicle had first announced that multiple parties had expressed interest in acquiring a stake in Deccan Chargers, following which it had appointed Religare Capital Markets as advisers. In September, a tender was formally floated by Deccan Chronicle Holdings, offering control of the franchise to a successful bidder on an “as is where is” basis, to allow banks to recover part of loans given to the company. On 15th September, the BCCI terminated Deccan Chargers from the IPL, since it had not payed salaries to cricketers part of the team.

Deccan Chronicle had approached the Bombay High Court, which the BCCI to maintain status quo on the matter till 24th September, the date of the next hearing. On September 25, Yes Bank, the bank supporting Deccan Chargers intervened and asked BCCI not to terminate the franchise’s contract, deposit whatever amount was due or receivable by Yes Bank and release Rs 41 crore due to Deccan Chargers. BCCI had asked the owners to  furnish a Rs 100 crore bank guarantee to the BCCI, however, since the owners failed to provide a bank guarantee, BCCI terminated Deccan Chargers from the IPL. Mumbai based Kamla Landmarc Real Estate Holdings had bought Deccan Chargers on October 12, 2012. However, on October 16, 2012, BCCI terminated Deccan Chargers and simultaneously announced a bid for Hyderabad franchise. Kamla Landmarc have challenged the Bombay High Court order refusing to set aside a status quo order passed by an arbitrator on cessation of its membership in the league.


-->

Archieve