Tag Archives: BCCI news

Kamla Landmarc Construction buys out IPL team

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DLF news , IPL news, BCCI news , india property news , property news , Ravi SinhaTrack2Realty-Agencies: Mumbai-based real estate firm Kamla Landmarc Construction is the new owner of the Hyderabad-based IPL team Deccan Chargers. The deal was finalised by Jitendra Jain-promoted Kamla Landmarc and T Venkattram Reddy’s Deccan Chronicle Holdings (DCHL) over the last few days. The size of the deal is yet to be confirmed.

In an announcement at the Bombay Stock Exchange, DCHL said, “Pursuant to its Meeting of the Board of Directors held on October 11, 2012, it was resolved to authorize the Board of Directors to sell, transfer/ dispose off the Deccan Chargers Franchise business undertaking(s)/ business division of the Company to Kamla Landmarc Real Estate Holdings Private Limited.”

The company said it has approved the draft memorandum of understanding placed before the Board of Directors at its October 11 meeting. The company, however did not disclose the details of the financial.

Jitendra Jain, Managing Director of Kamla Landmarc, could not be reached for comments. According to industry sources the talks were on for a few days and the deal got finalised over the last couple of days.

DCHL shares reacted immediately and jumped 4.9 per cent on the news and were trading at day’s high of Rs 9.6 per share on Friday, Oct 12.

Barely a month ago, Deccan Chargers owners DCHL rejected a Rs 900 crore bid from a film production company PVP Ventures. BCCI had said that both the price and the terms of the payment were not acceptable to them.

Stressed under high debt of over Rs 4,300 crore, DCHL has been looking to raise funds in order to meet its liabilities. It recently defaulted on its payments to some financial institutions.

The owner of the IPL team Deccan Chargers, Deccan Chronicle Holdings Limited (DCHL), is under the risk of losing its IPL franchise if it fails to cough up the Rs 100 crore bank guarantee to the Board of Control for Cricket in India (BCCI), said a banker close to the development.

“This is an irrevocable and unconditional bank guarantee towards the expenses for IPL series-6 including making payments to BCCI to players and support team costs. If DCHL fails to come up with the guarantee its IPL contract could be revoked,” said the banker. The 6th edition of the IPL is expected to be played out in April-May next year.

DCHL was on October 1 directed by the Bombay High Court to submit the bank guarantee by October 9. The high court observed that the BCCI’s earlier decision (made in September) to terminate the Deccan Chargers IPL franchise was taken in haste.

The direction was passed by Justice S J Kathawala while hearing a petition filed by DCHL challenging BCCI’s decision to terminate the contract of cash-strapped Hyderabad company.

On October 9, at the request of DCHL, the high court granted the company three more days to come up with amount. The guarantee is expected to be in force for a period of one year.

DCHL is currently said to be in talks with some banks to win the guarantee. An official from an existing private sector lender to DCHL said that if they were to lend to the company, the bank would expect a quid pro quo for taking further loan exposure in the debt ridden company. “We will ask for favourable terms during the settlement of dues or claims or any other quid pro quo measures,” the official said.

Another source said that in all likelihood it is a private bank which is willing to give a guarantee and not a nationalized bank. “The management is planning to move a petition in the court to raise bank guarantee and is in talks with ICICI bank for the same,” the source added.

Some public sector bankers say that they are awaiting a forensic report from Canara Bank before undertaking further proceedings or exposures with the bank. According to sources T Venkattram Reddy, Chairman, has pledged most of his movable and immovable properties even while the value is yet to be ascertained, “We are awaiting the forensic audit report and will then initiate legal action against the management” said a public sector banker.

The consortium of 21 lenders to the debt-ridden media company late last month failed to reach a consensus on admitting DCHL into the CDR cell. The lenders have an exposure of around R4,100 crore to Hyderabad based DCHL, which has been looking for easier terms to repay its borrowings. The empowered group of the corporate debt restructuring (CDR) cell will meet again on October 19, when the Deccan Chronicle Holdings Limited (DCHL) case will be taken up for discussion.

ICICI Bank has the largest exposure at Rs 490 crore, followed by Axis Bank at Rs 400 crore, Canara Bank at Rs 330 crore, Andhra Bank at Rs 200 crore, YES Bank at Rs 175 crore, IndusInd Bank at R100 crore, Kotak Mahindra Bank at R100 crore, Indian Overseas Bank at Rs 100 crore, Corporation Bank at Rs 100 crore, amongst others.

Some non-banking lenders include Religare Enterprises with an exposure of Rs 150 crore, Future Capital at R150 crore, SBI Pension Fund at Rs 50 crore, IFCI at Rs 27 crore etc.

DCHL’s revenues in the year to March 2012 stood at Rs 869.4 crore while the firm posted a net profit of Rs 61 crore. In the previous year, the revenues stood at Rs 1030.91 crore and profit was Rs 163 crore.

DLF may not extend IPL’s sponsorship

Posted on by Track2Realty

By: Ravi Sinha

Track2Realty Exclusive

DLF news , IPL news, BCCI news , india property news , property news , Ravi Sinha  Realty major DLF may not extend sponsorship to the Indian Premier League (IPL) after its first five-year deal expires this year. According to DLF sources, they have conveyed this to the Board of Control for Cricket in India (BCCI).

DLF has been the prime sponsorship to the IPL since its inception and DLF sources maintain they would like to exit IPL this year due to the declining viewers’ interest, as reflected in year-on-year TRP (Television Rating Point) chart.

“Situation has been very different when we had signed the IPL sponsorship five year back. Now that our prime objective of taking DLF homes across the country has been fulfilled, it is time to review the deal. We feel that IPL is also getting controversial with negative media reports of cricketers neglecting national duty for IPL,” said a DLF official requesting anonymity.

The BCCI has also maintained that they will throw its doors open again to corporates and brands for Season Six in 2013.

“All sponsorships and partnerships come to end this season,” confirmed Sundar Raman, CEO, IPL.

The big question remains—whether the BCCI will be able to get a big ticket sponsorship like DLF next time around? In the wake of BCCI toning down to its national sponsorship Sahara Group, in the absence of high ticket sponsorship, it looks highly unlikely.

The BCCI sources, however, assert their marketing whiz kids will be on an overdrive inviting new sponsorship/ partnership proposals for the Twenty20 extravaganza.

“That is because its sponsorship/ partnership agreements — that began in the inaugural season in 2008 with guaranteed revenue far in excess of $100 million — is all set to grow many times this year,” said as BCCI source.

However, Track2Realty has learnt that the IPL is trying it best to renegotiate with India’s largest real estate developer DLF to come on board again for the second half of the first ten years which the first eight franchises successfully bid in 2008.

The Delhi-based DLF, Deutsche Bank and Emeralds Telecoms had made an unsuccessful bid to be among the first eight franchises, but subsequently DLF struck a title-sponsorship deal for five years at $50 million. GMR Holdings became the Delhi franchise.

Five years ago the IPL signed five-year partnership agreements with Hero Honda as associate partner for $22.5 million, PepsiCo as official pouring partner for $12.5 million, Kingfisher as umpires partner for $26.5, ITC as hotel partner and with Kingfisher as airline partner (50 per cent discount plus customised routing and charters).

Apart from the media rights that is with Multi Screen Media (MSM)/ SET MAX, the agreements with DLF, Hero Honda (now Hero Moto Corporation), PepsiCo, Kingfisher, Vodafone (telecom partner), Karbonn Mobiles, Citi (banking partner), and Volkswagen formed a substantial part of the central sponsorship pool and 60 per cent of this money was distributed to the franchises.

Indian cricket has taken a hit following its dismal showing in England and Australia.

IPL as a brand itself suffered because of the alleged abuse of position and embezzlement charges against Lalit Modi leading to his suspension as Chairman of the high-profile Twenty20 event. Fresh valuations post-May 2012 of the billion dollar IPL brand and also of the nine franchises will eventually determine the power of the BCCI to market its money-spinning property.