IPG defaults first payment to SLC despite reminders
View(s):The Innovative Production Group (IPG), the event rights holder of the Lanka Premier League (LPL) has failed to settle the rights fees to date, even though the agreement entered into between Sri Lanka Cricket (SLC) and IPG on October 14, 2020, required an immediate payment.
This is despite SLC having sent several reminders to IPG upon submission of the invoice to settle a balance of US$ 1,775,000 (after deduction of the bid collateral amount). The IPG entered into a five-year agreement with a Dubai-based company which in turn agreed to pay a sum of US$ 1,920,000 annually for the first two years of the five-year deal. They agreed to increase it by 10 per cent each subsequent year.
Having defaulted the payment thus far, the company has suggested to submit a bank guarantee in lieu of the rights fee payable for the year 2020. However, the agreement does not permit the submission of a bank guarantee. The SLC is now seeking the approval of the membership by way of a resolution to allow the submission of a bank guarantee provided that it can be encashed within 24 hours of submission.
The resolution was submitted to its members on Friday giving barely 24 hours for them to respond. In the event no response is received from a member, their vote is counted as ‘in favour’.
“However, in view of the request made by IPG and to safeguard the interest of SLC, SLC proposed to the IPG that the Bank guarantee may be accepted by SLC provided such bank guarantee can be encashed within 24 hours of its submission,” the resolution circulated on October 30 reads.
IPG owns the franchise, ground and television rights of the event.