The BCCI was dealt a major blow on February 4 after the business conglomerate made the shock decision to terminate its sponsorship of the national team and withdraw its financial backing of Indian Premier League (IPL) franchise Pune Warriors. Sahara announced its decision to withdraw just hours before this month’s IPL player auction. Sahara has been the main sponsor of Indian cricket for 11 years and signed a renewed agreement with the BCCI through to the end of 2013 in July 2010. The agreement was worth $719,000 per international match and was a major factor in the BCCI’s reputation as world cricket’s richest organisation.
However, Sahara became increasingly frustrated with the governance of Indian cricket and had cited numerous reasons for its withdrawal. Sahara bid $370 million to become owners of the IPL’s Pune franchise in 2010, with the team entering the 2011 season as one of two expansion clubs alongside Kochi Tuskers Kerala. The company has fought a long-running battle with the BCCI over player regulations and the match schedule for the IPL, while it has also been angered by the Board’s stance over its request to replace its star Indian player Yuvraj Singh. Yuvraj is currently undergoing treatment for lung cancer in the United States and has been ruled out of this season’s IPL.
The two bodies have been involved in extensive talks since Sahara’s announcement, and the BCCI has now agreed to eight concessions concerning the company’s main concerns. The IPL trading window, which was due to close on Friday, will now be extended to February 29 to give Pune Warriors the opportunity to have successful negotiations with other franchises as it looks to strengthen its squad. This will also see the re-activation of the franchise’s auction purse so it can acquire new players.
Regarding the contentious issue of a replacement for Yuvraj, Sahara has offered to obtain the consent of all the franchises for fielding five foreign players in IPL matches. The BCCI and Sahara have agreed to start arbitration proceedings to address the company’s claim for a reduction in its franchise fee. Sahara has claimed it must be compensated for a reduction in IPL games from 94 when it bid for the franchise to the League’s current 74-game format. The BCCI has also stated that it “does not have any issues” with Sahara seeking a strategic partner in the Pune Warriors, subject to the terms of the franchise agreement.
A joint statement issued by N. Srinivasan, president of the BCCI, and Subrata Roy Sahara, managing worker and chairman of Sahara India Pariwar, added: “BCCI, in line with its normal practice, will continue to engage with all franchises to find ways to enhance the competitiveness of the league and improve the fan experience. Sahara confirms that it will continue sponsorship of the Indian team. Sahara may want to exercise its right to assign the sponsorship as per the agreement.”