Kochi franchise unlikely to meet BCCI deadline

The IPL is likely to invite fresh tenders for an eighth team as the factions within the Kochi franchise have failed to resolve ownership disputes 24 hours before the expiry of the BCCI deadline asking them to register as a company. A team insider has said that the deadlock continues and there is little hope left for the five-company consortium. There have been six extensive meetings in the last two days, but no progress.

After a recent offer by Kochi franchise promoters Rendezvous Sports, to buy out the 25% free equity - granted to it for life for setting up the consortium - was not accepted by its rival group, Rendezvous went back to the negotiation table with another offer. The equity buyout was reduced from 25% to 20% free equity. A source close to the discussions said Rendezvous' rival group, led by Mehul Shah of the Anchor Group, did not want Rendezvous to hold 25 % "because that would give special voting rights to the owner. "

In the latest development, the faction led by Shah, the biggest investor in the Kochi franchise with 26% stake, initially agreed to the 20% offer but with certain terms and conditions. It is those terms and conditions that have set up the new obstacle to an agreement.

A Kochi franchise source told ESPNcricinfo, "Both groups had agreed to the 20% equity but the terms sent to Satyajitsinh Gaekwad (the head of Rendezvous Sports) said that Rendezvous would not have voting rights or a seat on the management and nor would they be part of the running of the company."

Gaekwad, who recently appointed himself as the chief executive of the franchise, was unimpressed and an official who has presided over all the franchise meetings said Gaekwad had responded by asking, "Why should we [Rendezvous Sports] invest any money? Forget equity, if our shares are not performing shares then why we should pay?"

This latest development is a setback for the owners of the Kochi franchise, won the bid for the 10th IPL franchise with an offer of US$333.33 million. Subsequently, differences emerged in the consortium whose board comprised owners from diverse fields.

Ownership has been the most contentious issue with Gaekwad claiming Rendezvous Sports had the right to assume control of the franchise since it had made most of the investments at the time of winning the bid. The other faction, though, represented by Anchor's Shah, was against both the involvement of Rendezvous and the appointment of Gaekwad as chief executive. The Shah group had offered Rendezvous 10% of the equity as an exit payment from the consortium.

Rendezvous, however, remained adamant and made a counter offer less than a month ago. In an attempt to save the franchise from disintegrating, Rendezvous was willing to invest 100% of the free equity, an increase from its initial offer of investing 15% of the equity to end the feud. Shah, though, remained resolute and the sources said, "he plainly did not want Rendezvous on the team. The problem is that without Rendezvous, you cannot register a company, because they are the promoters."

The last few weeks have been clouded with uncertainity for the IPL but an governing council member said that neither the confusion over Kochi or the termination of the Rajasthan Royals and King's XI Punjab teams would have any impact on the league as a whole. "IPL 4 will happen" the governing council member said, "and it will happen with as many teams as it always has - all matters will be sorted out."