The Board of Control for Cricket in India (BCCI) and Multi Screen Media (MSM) Singapore, IPL broadcaster for the Indian sub-continent, have sorted out the disputed $80 million ‘facilitation fee' agreement between MSM and World Sport Group (WSG) Mauritius.
MSM has agreed to disburse to the BCCI Rs. 300 crore over a period of seven years and in eight instalments.
MSM has also committed to pay to the BCCI the balance rights fee of Rs. 125 crore, once it recovers the money from WSG. MSM has said it has cancelled all future payment demands that WSG Mauritius may make. MSM stated, “A suit for recovery of monies already paid to WSG and for suitable declarations has been filed in the Hon'ble High Court of Bombay.''
Thus MSM appears to have accepted the BCCI's rationale that its ‘facilitation fee' agreement with the WSG was “improper''.
MSM (known as SONY in the first IPL season 2008) won the bid for Indian sub-continent television rights for $ 1.026 billion for five years (2008 to 2012). WSG won the international television rights, global radio, mobile and internet rights for the first five years and the global television rights from season 6 to 10.
As it transpired, the BCCI cancelled MSM's contract on March 14, 2009 and awarded the Indian sub-continent rights to WSG (on March 15, 2009) from IPL season 2009 to 2017.
Subsequently and after a lawsuit at the Bombay High Court , MSM, as per its own statement opted to secure the rights back (as against seeking damages from the BCCI) for its commercial interests. MSM's revised deal entailed a payment of Rs. 8,200 crore from IPL season 2 to 10.
MSM explained its position last April saying, “It is MSM's clear position that to secure its business interests, the broadcasting rights agreement should be a direct contract with the BCCI, rather than as a sub-license under an agreement with WSG Mauritius, which had these rights.
“To facilitate MSM's condition for a direct contract with BCCI, WSG Mauritius agreed to give up its broadcast rights for the Indian sub-continent in favour of MSM, thus paving the way for BCCI and MSM to enter into a contract directly.
“In consideration for this, MSM agreed to pay WSG Mauritius a facilitation fee of Rs. 425 crore.''
The BCCI on Friday issued a statement saying: “The IPL Governing Council approved an amended Media Rights Agreement with MSM Satellite (Singapore) Pte. Ltd. in which MSM would agree to pay the balance payable under the Facilitation Fee Agreement to the BCCI.
“Thus, they have agreed to pay Rs. 300 crore as part of the rights fee to the BCCI. MSM Satellite (Singapore) are taking steps to recover Rs. 125 crore already paid to WSG Mauritius and on recovery, will pay the same to the BCCI.''
