SLC to offer matching rights to IPG after term ends
Thisara Perera receives the trophy
Sri Lanka Cricket(SLC) has decided to offer matching rights for the current event right holder of the Lanka Premier League (LPL) at the end of the current five-year term, if they are willing to pay 25% more than the highest bid. At the conclusion of the existing contract, the board has decided to call for tenders with matching rights to the current rights holder.
The Dubai-based company– The IPG Group, the current LPL event right holder, has requested for five years of matching rights for the tournament at the conclusion of the current five-year contract to recover their investment citing huge losses totaling to US$2.4 million from the first year itself.
Following the request, the SLC has sought legal advice where the lawyers have advised the board to include matching rights to be some percentage higher to the highest bid and introduce a fee for giving the said matching rights.
Lawyers have pointed that, that way potential bidders will not be deterred by the possibilities of IPG matching the rights offered under a competitive bidding process and SLC will also be able to get the maximum possible value out of the bid.
Though this was passed at the Executive Committee Meeting held on December 1, the SLC officials on the following day denied any such move when questioned at length at a press conference held ahead of the second edition of the LPL.
Jaffna Kings opener Avishka Fernando - Player of the Season - Pix SLC
The IPG Group made two request from the board–seeking to extend the term of the LPL Event Right Agreement and Franchise Agreement with matching rights and rights of first refusal for franchise ownership, which is to take effect upon expiration of the initial term of five years.
The lawyers’ opinion say ‘there is no legal implication on SLC to incorporate the proposed amendments with regard to the ‘Matching Rights’ and other changes proposed as requested by IPG by their letter dated 29th September 2021 and 25th May 2021’.
It also says that after being approved by the Executive Committee of SLC such proposals should be effected in both the Event Rights Agreements by an addendum and the Franchise Agreements. SLC were to receive US$ 1,925,000 during the first two years according to the bid documents and a 15% incremental increase from the third year.
The second edition of the LPL concluded on Thursday at the Sooriyawewa Cricket Stadium with Jaffna Kings retaining the title they won last year, beating Galle Gladiators.