Rajasthan Royals guarantee fee halved

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Published: Wednesday, December 29, 2010, 12:45 [IST]
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Rajasthan Royals guarantee fee halved

The reprieves just keep flowing in from Indian Premier League (IPL) franchise Rajasthan Royals. The Bombay High Court on Monday, Dec 27, has halved the amount of security guarantee the team will have to provide towards players' payments for the next couple of years and to cover the contract with the BCCI. The reduction - from $20.83 million to $10.63 million - will be followed by a lessening of the franchise's financial limit at next month's player auction.

On Dec 14, the court had then upheld the interim stay granted by the arbitrator against the termination of the franchise by the BCCI, but had asked Rajasthan to see to the fulfilling of certain conditions by Jan 3, including raising a guarantee of $20.83 million from a nationalised bank in India - $18 million to cover the players' salaries over the next two seasons and $2.83 million to cover any damages incurred by the BCCI in the event that the final ruling of the arbitrator went against the franchise.

But in the meantime, Rajasthan issued a fresh plea to slash the security amount since the franchise had retained Shane Warne and Shane Watson for a combined amount of $13.1 million, effectively slashing the team's purse to 5.9 million available for the player auction.

"Our contention was we shouldn't be asked to pay $20.83 million but $10.63 million ($3.9 million per year for two years plus the $2.83 million BCCI guarantee)," Rajasthan's chief marketing officer Raghu Iyer said.

The court has additionally instructed Rajasthan Royals to issue an affidavit from its owners indicating that the basic ownership and ultimate control of the franchise remains unchanged.


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