Sun TV wins bid for new IPL franchise for Rs 85.05 cr per year
The IPL Governing Council, which met earlier today in Mumbai to open the bids for a new IPL franchise, finalised the name.
This franchise fee represents a premium of over 100 per cent above the amount paid by Deccan Chronicle Holdings Ltd (DCHL) for the Hyderabad franchise in 2008.
Deccan Chargers, the franchise owned by DCHL, the publishers of Deccan Chronicle, was terminated by BCCI for non payment of guarantee money. Deccan Chargers won the IPL championships in the second season.
Sun TV replaces Deccan Chargers, outbids 11 cities to buy Hyderabad IPL franchise for Rs.85 crore a year
The BCCI had floated the tenders for a new IPL franchise after terminating the Deccan Chargers’ contract on September 15 but the team owners DCHL had challenged it at the Bombay High Court.
The High Court had ruled in favour of the BCCI after Deccan Chargers Holdings failed to furnish a bank guarantee of Rs 100 crore before October 12, 5 pm deadline.
Later, an arbitrator had ordered for status quo but the High Court again ruled in favour of the board.
Deccan Chronicle Holdings then approached the Supreme Court which, however, declined on October 19 to interfere with the High Court decision which had set aside the status quo order passed by the arbitrator.