BCCI demands multi-million dollar settlement

 

Dharmasala: West Indian players Andre Russell walks back to the pavilion after getting dismissed during the fourth ODI match between India and West Indies at Himachal Pradesh Cricket Association Stadium, Dharmasala on Oct.17, 2014.
Dharmasala: West Indian players Andre Russell walks back to the pavilion after getting dismissed during the fourth ODI match between India and West Indies at Himachal Pradesh Cricket Association Stadium, Dharmasala on Oct.17, 2014.

The West Indies Cricket Board (WICB) will have to cough up nearly $42 million in order to stave off a lawsuit from the Board Of Control For Cricket In India (BCCI), stemming from the abandoned tour of India last month.

Indian authorities  told the WICB that its losses as a result of the abandoned one-day and Test tour had been estimated at $41.97 million, and gave the regional board 15 days in which to come up with a plan of compensation, reports CMC.

The BCCI had announced two weeks ago it would seek compensation from the WICB for losses sustained as a result of the cancelled tour, and followed through with formal correspondence to the Antigua-based organisation .

Media rights make up the bulk of the losses with the BCCI estimating them at just over $35 million, while ticket sales account for around $2 million and the title sponsorship from Micromax estimated at $1.6 million.

The BCCI has also factored in losses in kit sponsorship from Nike, team sponsorship, in-stadia sponsorship and stadium concessionaires, in the compensation package.

“The BCCI calls upon the WICB to formally inform the BCCI, in writing, of the steps it intends to take to compensate the BCCI towards the losses quantified above as well as those losses yet to be quantified by the BCCI in relation to the cancelled WICB tour,” said the letter, signed by BCCI secretary Sanjay Patel.

“In the event the BCCI does not receive such a proposal in acceptable terms, within a period of 15 days from receipt of this letter, please note that the BCCI has peremptorily instructed its attorneys to initiate steps for recovery of the losses by filing appropriate legal proceedings against the WICB in the appropriate Indian court and you may treat this notice as a formal demand in that regard.”

Imran Khan, the WICB’s corporate communications manager, confirmed the WICB had received the BCCI letter but opted not to comment further.

In detailing its losses, the BCCI said the cancelled tour had resulted in “adverse financial ramifications” and accused the WICB of having “complete disregard” for legal commitments.

“The consequences on the BCCI of not delivering a scheduled home tour to its members, sponsors, broadcasters and the fans are multi-fold and crippling,” the BCCI letter said.

“The BCCI is faced with huge revenue losses, a loss of reputation and is at risk of losing valuable commercial partners. The consequences of cancellation of a committed home tour during the biggest festival season.

“Diwali in India is a monumental disaster for the BCCI. It is during this season that our partners derive the most value from their rights. Our broadcaster had committed to its advertisers during this season and on account of your actions, is facing a severe crisis the effects of which are felt by the BCCI.

“The BCCI holds the WICB responsible and liable for all such consequences and intends to enforce its rights to seek compensation from the WICB to the fullest extent permissible in law.”

Noting the figures outlined were “tentative and constitutes an approximation of the losses that BCCI is able to quantify at this time”, the Indian board said any other losses would be communicated to the WICB at a later date.

The BCCI also informed the WICB it was formally suspending all bilateral relations until the legal issues were resolved.

Indian authorities were furious after the West Indies players quit the tour following the fourth ODI in Dharamsala, with an ODI in Kolkata and Twenty20 in Cuttack remaining.

The three-Test tour, scheduled to bowl off Oct 30, was also scuppered.

The Windies players were protesting new playing contracts which they argued would have resulted in up to a 75 percent reduction in their earnings.