Chennai Super Kings, Rajasthan Royals take BCCI to court over franchise fees

IPL's two suspended franchises, Chennai Super Kings and Rajasthan Royals, have reportedly moved court on having been asked to pay their franchise fees despite not being part of the tournament for 2 years. Following a penalty imposed by the Lodha Committee on both CSK and RR due to their involvement in the spot-fixing scandal, the BCCI had made it known to them that the fees would have to be paid to ensure that they remain associated with the IPL brand.

While Chennai Super Kings were having to pay a whopping Rs 73 crore per year as franchise fees, Rajasthan Royals were spending Rs 56 crore even though they were not participating in the IPL.

Speaking to The Indian Express, CSK manager George John confirmed their decision to take the matter to court. He said, "Yes, we moved the Bombay High Court in April, seeking to resolve the dispute over the payment of the franchise fee through arbitration. Rajasthan Royals, too, did the same and both arbitration have been held simultaneously. The oral hearings are over but some technicalities remain. So it might take at least another two-three months to reach a verdict."

John also threw light on the root cause behind the step that the two tainted franchises have taken. He added, "Our logic is simple; why shall we pay the franchise fee, when we are not playing?"

The BCCI clarified their stand on the issue and also revealed the fact that both teams had already paid their first installments. "They had paid us the first installment under protest. They felt it was unfair on the part of BCCI to ask for franchise fees. We had made it very clear that the board will not bear the loss. The image of the BCCI has already taken a big hit after the whole spot-fixing scandal. If they want to remain a part of the league, they will have to continue paying the fees, " a top BCCI official was quoted saying.

It remains to be seen whether the move by CSK and RR brings about a positive outcome for them or not.