A Letter of Intent, signed by Pakistan Cricket Board's Director (Board Operations) Saleem Altaf on behalf of India, Sri Lanka and Bangladesh, was dispatched this morning. The ICC will make the decision on the host country for the 2011 World Cup in its June meeting in Dubai.
The countries have clarified in the Letter of Intent that they would not accept all the terms and conditions of ICC pertaining to hosting of the World Cup, a top PCB official said.
"We have informed the ICC that we have reservations on many issues like its financial model and exemption from certain government taxes," the official said.
"At this point of time, we can assure the ICC that we could provide them stadiums for sponsors' hoardings, excellent facilities for the teams and officials, and security. But at this point of time we can't assure the ICC on immigration, visa policies and exemption from taxes as the event is five years from now," he said.
"Besides, the formula for the allocation of earnings for the host Boards from the profits is also not acceptable to us," he said.
Strict Indian laws on tax exemptions nearly forced the shifting of this year's ICC Champions Trophy while India and Pakistan are yet to receive nearly 1.8 million pounds of profits from the 1996 World Cup because of litigation.
The PCB official said from the 2007 World Cup, the hosts West Indies would get nearly 40 per cent of USD 101.1 million but thereafter, the host countries would only receive a maximum of 15 per cent from the total earnings.
"After doing all the spade and leg work in hosting the World Cup, if Asia shares something like USD 20 million, it is not worth it. The formula needs to be improved drastically because if all the money is in Asia, then Asia should get the lion's share from the total earnings.
"According to ICC's revised financial model, the ICC does not take home all the earnings but the member countries get nearly the same money if not more by just making an appearance," he added.
PCB Chairman Shaharyar Khan confirmed that they had expressed some reservations but hoped that the matter would be settled amicably.
"Yes, there are some areas of concern like government policies on some matters and profits from the World Cup. But these are matters that can be explained and an understanding with the ICC can be reached," Shaharyar said.