New Delhi, Nov 15, : , The Board of Control for Cricket in India has yet to issue the Letter of Intent (BCCI) to American company Irelia Co Pvt Ltd (“CVC Capital Partners”), who were granted the franchise rights of the newly inducted Ahmedabad club for the next season of Indian Premier League. IPL will be a ten-team affair from the 2022 season with the introduction of two new teams based at Ahmedabad and Lucknow.
IPL will become a ten-team sport starting in 2022 with two new teams, based at Ahmedabad or Lucknow.RPSG, made the winning bid of Rs 7,090 crore to acquire the Lucknow franchise while CVC Capital Partners was awarded the Ahmedabad franchise for a bid of Rs.CVC Capital Partners won the Ahmedabad franchise, while RPSG made the winning bid for Lucknow.CVC Capital Partners bid Rs.5,625 crore.
However, questions are being raised about CVC for its business interests in betting firms in the international market.CVC’s business interests in international betting companies are being questioned.
According to past press statements issued by CVC Capital Partners, it acquired a majority stake in Malta-headquartered betting operators Tipico, which has a major base in Germany too, in 2016 after taking a controlling stake in UK’s Sky Betting and Gaming in 2014.
CVC Capital Partners has stated in the past that it bought a majority stake of Tipico, a Malta-based betting operator.This was after having taken a controlling stake at Sky Betting and Gaming UK in 2014.Notably, betting is legal in those regions.It is also legal to bet in these regions.
But, none of these entities have business operations in India, where betting is illegal.However, these entities do not have any business operations in India where betting is prohibited.
In the latest development, CVC’s successful bid to win the Ahmedabad franchise of the IPL has gone into negotiations with the company trying to explain to the BCCI officials that its investment in a UK betting firm, which has become a bone of contention, is not illegal.CVC’s bid to win Ahmedabad’s franchise in the IPL is now under negotiation with the company.They are trying to convince the BCCI officials that CVC’s investment in a UK gambling firm, which has been a source of contention, was legal.
As a result, there has been a delay in BCCI giving the Letter of Intent, which has already been submitted to the RPSG Group of Sanjiv Goenka, who has successfully bagged the Lucknow franchise.
Due to this delay, BCCI has not given the Letter of Intent.It has been submitted to the RPSG Group by Sanjiv Goenka who has secured the Lucknow franchise.
According to a report in Cricbuzz, the top CVC officials have flown to India and to Dubai as well, to have talks with the BCCI office-bearers and officials.Cricbuzz reports that top CVC officials flew to India and Dubai to meet with officials and office-bearers of the BCCI.
The legal team of the BCCI is also looking into the CVC files and there is a chance that a committee could be formed to adjudicate on the matter.The BCCI’s legal team is currently looking into CVC files.
There is a possibility that a committee could be created to decide the matter.
The report further stated that the bidding parties were told on October 25, when the auction had taken place in Dubai, that there may be a full-scale study of their business roots as it was not possible to go through all the papers on that day itself.
Further, the report stated that bidding parties were informed on October 25th that due diligence would be conducted on their business roots.It was impossible to review all papers that day.The BCCI had given itself time up to December 31 for the second round of due diligence, if needed.If necessary, the BCCI gave itself time until December 31 to conduct a second round of due diligence.
Meanwhile, CVC is confident that the matter will be settled in their favour.CVC remains confident that the matter can be resolved in their favor.
The people close to the American company claim that most major foreign companies, including one of the stakeholders of the BCCI, may have made investments in the betting companies and that is not unusual.People close to the American company believe that many major foreign companies, including one stakeholder of the BCCI may have invested in the betting companies.This is not unusual.
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