BCCI seeks fresh advice on CSK's demerger

The BCCI working committee has decided to seek fresh legal advice on Chennai Super Kings' low valuation in an attempt to demerge the franchise from India Cements Limited. The committee also authorised board president Jagmohan Dalmiya and secretary Anurag Thakur to decide the fate of Champions League Twenty20.

"The committee decided to seek a fresh legal opinion on the demerger and transfer of shares of CSK for further action," Thakur stated in a brief media release after the first working committee meeting of the new structure, which lasted almost four hours.

It is understood that former BCCI president Shashank Manohar and Tamil Nadu Cricket Association vice-president PS Raman were involved in a heated exchange over Super Kings' valuation. Manohar apparently pointed out that it was absurd of the Super Kings management to put base value of the proposed trust to administer the franchise as Rs 5 lakh (approx. $8000).

Manohar is also understood to have pointed out that by approving the proposal on February 27, the previous governing council headed by Ranjib Biswal did not primarily act in the board's interest. Since any change in control of a franchise results in a payment of 5% of the additional value, the BCCI accepted an application of Rs 25,000 as transfer fee for a franchise that spends at least Rs 120 crore (approximately $18.75 million) every season.

Raman retorted by saying they had adhered to all the norms set by the BCCI and if the board backtracks on its approval, the Super Kings management may seek legal recourse.

Considering the legal complexity of the issue, the house then absolved all the previous governing council members of any wrongdoing or ulterior motive to dupe the board and decided to seek legal recourse. The matter will now be forwarded to the BCCI's legal consultants, Amarchand & Mangaldas, who will revert to Dalmiya and Thakur with their suggestions.

The CLT20 discussion revolved largely around whether the tournament has become redundant for most of the stakeholders, especially the BCCI. When it was informed to the floor of the house that the broadcaster, Star India, is not to keen to continue its association, Dalmiya and Thakur were then authorised to have a last round of discussion with the broadcaster and take the final call over the future of the tournament.

The working committee also accepted Thakur's proposal to set up a cricket advisory committee that will have a major say in all cricket affairs. "The Working Committee of the BCCI authorised the President Mr Jagmohan Dalmiya to constitute a cricket advisory committee comprising of prominent cricketers who will share their recommendations on the overall conduct and development of the game," the BCCI media release said.

One of the first tasks of the new committee will be to initiate the procedure to appoint India's support staff ahead of its next international assignment in June in consultation with Dalmiya and Thakur.

The working committee also ratified Neeraj Kumar and Madhusudan Sharma's appointment as consultants to the BCCI Anti-Corruption & Security Unit, and recommended Rohit Sharma for the Arjuna Award, one of the most prestigious honours for sportspersons instituted by the Government of India.