Relieved to get another 30 days to resolve its ownership differences, Kochi IPL consortium's co-owner Rendezvous Sports World today said it would buy a part of its 25 per cent free equity in the franchise which is the crux of the dispute.
The Kochi franchise has been given a month's time to resolve its internal differences after an emergency meeting of the IPL Governing Council here.
The lingering dispute centers on who will run the affairs of the USD 333 million franchise once the joint venture is formed. The investors in the Kochi consortium include corporate firms Anchor Earth, Parinee Developers, Rosy Blue and Film Wave - who hold 75 per cent of the equity. The remaining 25 per cent has been given to the family of Gaekwads - Shailendra, his brother Ravi and their parents plus a few others, all part of the group of promoters - Rendezvous Sports World - as free equity for services rendered in successfully bidding for the franchise.
Rendezvous CEO Satyajit Gaekwad said the group will not back down from its 25 per cent holding in the franchise but is in the process of buying 12.5 per cent of it to placate the other investors who are against free holding.
"Rendezvous is, in uncertain terms, clear that we will never come down from 25 per cent equity. But in case of the free equity, we are ready to bring in the money and review it from 25 per cent to 12.5 per cent as agreed by investors and the board and we have minuted the details and sent it to BCCI. We have requested them to give us permission to make such structural changes," Gaekwad said. "On the basis of permission given to us, we would proceed to put in the investment for 12.5 per cent. We have already given a cheque in those financial terms to the consortium and we are sure that since we have 30 days of grace period, we should come down to an understanding and close up the differences," he added.
The IPL Governing Council, after an emergency meeting to discuss the issue, served a 30-day termination notice to the franchise to sort out its differences failing which it would stand cancelled.
"The Governing Council received replies from two parties, the Rendezvous group and the other co-owners, and they both felt that the dispute still exists," BCCI President Shashank Manohar told reporters after the meeting. "The Governing Council has invoked clause 12 (1) and given them a 30 days notice that in case they don't remedy these disputes in the 30 days, the franchise would stand cancelled on the 31st day," he said.