Freshly out of a highly successful IPL bidding process, the BCCI has run into an ugly controversy. As ownership battles ensued for the two new IPL teams at the BCCI office on Monday, it quickly took a turn towards the hidden underbelly of one of the winners. The RSPG Group, led by Mr Sanjiv Goenka, won the rights to own and operate the Lucknow based team. On the other hand, International Equity Investment Firm Irelia Company Pte Limited (CVC Capital Partners) got ownership of the Ahmedabad-based team. Problems have emerged surrounding the American firm CVC Capital Partners. It has been learned that it has sufficient interests and investments in companies involved in betting in foreign countries. It is pertinent to note here that all forms of betting and gambling are illegal in India.
Lalit Modi Slams The BCCI On Twitter
The issue got highlighted in a tweet made by former IPL chairman Lalit Modi, the same person who was the backbone behind the creation of the IPL back in 2008. He attacked the current BCCI office-bearers for blatantly overlooking the fact that CVC Capital Partners has been linked to betting companies for a long time. His tweet reads, “i (sic) guess betting companies can buy a @ipl team (sic). must be a new rule. apparently (sic) one qualified bidder also owns a big betting company. what (sic) next 😳😳😳 – does @BCCI not do their homework. what (sic) can Anti corruption do in such a case? #cricket” Modi tweeted.
Knowing What CVC Capital Partners Is All About
Irelia Company Pte Limited (CVC Capital Partners) is an American firm that has been involved in different fields of sports the world over for a long time. Its past investments have been in Formula 1, a sport it fully controlled from 2006 to 2017. In recent times, it offered an overwhelming 3 billion dollars to take over a 10 per cent stake in the Spanish first division league (known otherwise as La Liga). Two of the world’s biggest football teams- Real Madrid and Barcelona, play in that league. However, due to complaints made by a handful of prominent teams playing in the La Liga, the offer was ultimately rebuked. This took place after it came to light that CVC Capital had breached certain laws of Spain and had bylaws in its agreement that undermined the authority of the Liga officials over its constituent clubs.
The BCCI’s Stance On The Matter
Due to the ongoing onslaught over its ethical policies, the BCCI has begun communicating with the CVC Capital Partners team to come to a working solution. The BCCI’s main concern is to find out whether its association with CVC Capital Partners could lead to any future legal hassle.
When approached, an important member of the BCCI said, “CVC Capital is a big private equity company and they are free to pick up stakes in a betting company because betting is legal abroad. Irelia Company Pte Ltd (through which CVC Capital bid) could be managing many funds but as long as they don’t have any managerial role or control, how does it matter? Betting is a matter of perception. It should not be confused with match-fixing.” Many observers see this as an example of the BCCI’s double-standard nature.
Adani Group Already On Alert
Indian business tycoon Gautam Adani has put his team on alert over the developments taking place in the BCCI headquarters. The Adani Group had put forward a bid amounting to INR 5100 Cr on the day of the bidding but was overtaken by the INR 5625 Cr bid of the CVC entourage. Due to the uncertainty surrounding the continuation of CVC Capital’s ownership of the Ahmedabad team; they would be looking to make a return to the table in case CVC’s contract gets terminated.
All Eyes On The BCCI Now
It is going to be a tense few days for the hierarchy; seeing as they have openly overlooked standard ethical norms by giving rights of an IPL team to a company owning betting firms overseas. The controversy has already brought back memories of the betting scandal that rocked the IPL back in 2013; leading to the banning of CSK and Rajasthan Royals for two years. The Sourav Ganguly-led BCCI has got its work cut out for them; which is to clear all doubts about its seriousness to keep the IPL taint-free.