governing council

IPL Round-Up:Dates, auctions,rules and arbitration

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Life goes on and so does the IPL.

The IPL Governing Council met on Wednesday, the 19th of November, 2010 and it was business as usual.

The council members seem untouched by the sordid drama enacted on various stages.

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IPL Round-up: Kochi on verge of going belly up, Kings XI ‘courts’ BCCI

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Is it the end of the road for the Kochi consortium? A Daily News & Analysis (DNA) report would have us believe so.

Vijay Tagore reports that at a meeting held on Friday, the 12th of November, 2010, the franchisee owners agreed to write to the Board Of Control For Cricket in India (BCCI) to cancel the team.The letter is to be submitted this Monday or Tuesday. This is a good two weeks before the deadline extended by the BCCI.

(Well, if there’s bad news to be had , you might as well receive it early.)

The irreconcilable differences in the cobbled-together-unit could not stand the scrutiny of day. The members’ sole concern is to recover the money and bank guarantee submitted to the Board.The agreement fee was $10 million (Rs. 45 crore) and the bank guarantee Rs. 153 crore , 10 per cent of the team’s worth.

In this case, it does seem a case of a terrible beginning making for an equally tragic ending.

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IPL: Kochi franchisee in ICU , issued a thirty day termination notice

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If the BCCI bigwigs were in a tearing, unholy hurry to terminate the Lalit Modi-associated franchisees — Rajasthan Royals and Kings XI Punjab — they are now dragging their feet and going by the book in their dealings with the Kochi consortium.

The IPL governing council met this morning , October 27, 2010 . After due deliberations they issued a thirty day termination notice to the alliance partners.

Shashank Manohar  — a lawyer by profession —  pronounced that the Kochi franchise’s case is quite different from the other two expelled franchisees. Since there were no new partners added to the shareholding structure , it is considered a ‘remedial breach’ of the agreement. The Kochi franchisee lives on for another thirty days.

"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.

The infractions by the other two franchisees have been termed ‘intermediary breaches’.

IPL: Sunny Gavaskar’s ‘revolving door’ is greeted with disdain in the Indian media

Doubts still linger about Sunny Gavaskar’s role in the Kochi franchise bid.

Was he just being helpful when he informed the Kochi consortium members about how the bidding process worked?

Should not the Kochi franchisee members have approached the BCCI  for clarifications rather than a sitting member of the IPL Governing Council?

The question of propriety is yet to be answered comprehensively by the master batsman.

If the Kochi proposal is accepted by the BCCI and Sunny Gavaskar handles the newly formed team’s cricketing operations, would this not be a case of a ‘revolving door’ where Sunny has moved from a governing body to being part of a governed body?

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IPL: Sunny Gavaskar hits the headlines, Kochi decision on Wednesday

Sunny Gavaskar hits the deadlines once more; this time it is his links with the Kochi franchise that have drawn flak from all quarters.

The Indian batting legend , the first cricketer to score 10,000 runs and surpass Don Bradman’s 29 tons, is mulling over an offer from the Gaikwads, the Rendezvous group owners, to handle all matters cricketing.

The news comes as a bit of a surprise and there exists speculation about Gavaskar’s role in the bidding process as a possible conflict of interest ; the master batsman was then on the IPL governing council.

(The  fallout between Lalit Modi and Shashi Tharoor was the result of allegations that Tharoor sought Modi’s interference in the bidding process to ensure that the Kochi group’s bid would be successful.)

Gavaskar is no longer a part of the IPL set-up; he quit the re-constituted governing council citing differences with the BCCI.

Was the conflict of interest a reason for the differences? If yes, why then was just the super accumulator penalised?

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Corporate Governance

Corporate governance has been in the Indian news headlines quite recently in connection with the scam perpetrated by Raju on Satyam shareholders and employees. Interestingly,  Satyam was the recipient of numerous corporate governance awards. Just goes to prove that just because processes are in place, does not imply that the processes are being followed. The spirit of the law  is more important than the letter of the law. But then India is a nation that loves it’s forms, it’s idiosyncratic processes and customs,it’s  bureaucratic ways and any change is greeted with derision, disdain and shock. Processes are meant to be traditionalized, embedded into the culture of the company and not uprooted without a by your leave! Who minds it’s clutter?

For more laid-back news followers, Satyam was just another scandal in just another family-run business.Satyam despite all its protestations , was just that – a family-run business though it’s shares were listed on the Indian stock exchange and available via ADRs.The more engrossing and entertaining corporate scandal has been the IPL imbroglio and it’s many running installments in the Indian media rumor mill.

Now, the IPL has a governing council which is equivalent to a corporate board of directors. In theory, a board of directors is an independent body that oversees the management of the corporate body or entity. It is there to make sure that the right processes are adhered to, that due diligence is carried out while executing strategy and no hanky-panky or unethical acts are carried out by any of the top management honchos.

But in practice, this is easier said than done. Most corporate boards are appointed with inputs from the incumbent management and thus cronyism is the name of the game. The typical board is populated with members who thus tend to be hand-in-glove with top  management. This seems to have been the case with the IPL governing council. Despite the presence of luminaries such as Ravi Shastri, Sunil Gavaskar and M A K Pataudi on the governing council, the BCCI finds itself facing a scandal of gargantuan proportions with conflict of interest and high-handedness tarnishing the fabric of IPL governance.

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