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Sep 14, 2012, 09.17 AM IST | Source: CNBC-TV18

Deccan Chargers reject sole takeover bid

The future of the Deccan Chargers remains uncertain. The only bid received for the franchise was rejected by the owners today, which leaves not just the future of the franchise in doubt, but calls into question the viability of brand IPL itself.

The future of the Deccan Chargers remains uncertain. The only bid received for the franchise was rejected by the owners today, which leaves not just the future of the franchise in doubt, but calls into question the viability of brand IPL itself.

The fate of the Deccan Chargers continues to hang in the balance, once IPL Champions, now the franchise can't seem to find itself new owners. The big-ticket IPL dream seems to have soured for the chargers. 

"They informed us the price and terms were not suitable so they did not accept it," BCCI president N. Srinivasan told reporters in Chennai.

"The BCCI assisted the Deccan Chargers and we also looked at the eligibility criteria, whether they were fit and proper.

"We found the party was acceptable to us. After that, though, it was between Deccan Chargers and the bidder."

Andhra-based film production house PVP Films were the only ones to submit a bid valued at approximately Rs 855-915 crore, the bid, in spite of meeting the BCCI's eligibility criteria, was rejected as sources say the banks who loaned money to the current promoters DCHL, opposed the sale

Having failed to find new owners in an advisory capacity, it will be back to the drawing board for the BCCI and an internal communiqué discussed at a recent working committee meeting that has been accessed by CNN-IBN throws light on the possible way forward. 

First option could be to terminate the Chargers and play an 8-team league for 2013. But this could have a negative financial impact on the league, BCCI could lose approximately Rs 100 crore and each of the other 8 franchises would lose at least Rs 6 crore each.

A second option could be to terminate the Chargers and have auction for a new franchise. While there is a window to earn more through a new auction, the Board will have to consider the possible negative publicity the termination might generate.

All eyes will now be on the BCCI's special general meeting this Saturday in Chennai where the board will hope to find a way forward, not just for the embattled franchise, but also for reputation of the IPL brand itself.

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