PRESENTED BY: SOORAJA NAMBIAR

RAVI SHAH

INTRODUCTION• Indian Premier League or IPL a total package containing

cricket and entertainment organized by BCCI. • Brainchild of Mr. Lalit Modi, Former President IPL. • Launched on 14th September 2007 by BCCI on the line

of Footballs English Premier league (EPL). • DLF secured exclusive rights for IPL title sponsorship at

Rs. 200 Cr. For 5 years. • Professional twenty20 cricket league created and

promoted by BCCI and backed by ICC• Ranked 22nd as the most innovative product

launched(FORBES)

About Teams• The IPL teams were auctioned on 24th January

2008. • Eight teams were build up according to the regions

of India.

Remarkable Achievements

• Emergence of Brand India. • Emergence of a business within cricket, thus

generating more scope for business. • Better opportunity for Indian players to

showcase themselves, which was earlier limited to only 11 players.

• Boost for Advertising industry by IPL alone Rs.300 Crores

Lalit Modi and IPL Financial Scandal

BCCI charges Modi with 5 scamsSCAM 1:- Its relates to Timeouts introduced by Modi in

IPL2. In IPL 2, 600 seconds of extra time were introduced as strategic timeouts. Strangely for rest of world rights, contract did not include these 600 secs. BCCI alleges Modi caused loss of revenue worth Rs 29 crores to Board.

SCAM 2:- The 2nd scam is the Advertisements within

Balls scam. Lalit Modi introduced the idea of 150 seconds of ads within balls. Modi handed this without tender to Pioneer Digagsis run by former Sony chief Kunal Dasgupta. BCCI alleges Modi indulged in favouritism hurting Board's interests.

SCAM 3:- Media Rights Worth Rs. 425 crores Multi Screen Media (MSM), holds the telecast rights for the IPL which it

bagged for $1.02 billion for 10 years in 2008. The deal was later scrapped by the BCCI, which renegotiated with MSM for a nine-year deal for $1.63 billion. Tax sleuths are focusing on a “facilitation fee” of $80 million (about Rs 356 crore) which MSM paid the Mauritius arm of World Sports Group, the marketing agency of the IPL. MSM says the fee was paid to WSG to give up its broadcast rights for the Indian subcontinent, thus paving the way for the BCCI and MSM to enter into a direct deal. The suspicion is that the money was routed back to India to be paid as kickbacks to top people associated with the IPL

• SCAM 4 :- The fourth scam is being called the

Security van scam. IPL awards contract to Visual Impact headed by Ajay Verma. Contract is to supply 3 vans at Rs 5 crores. Contract further said 4 more vans to be provided over next 7 years. BCCI alleges Modi did not follow due process while awarding contract. BCCI alleges Modi hired IPL security vans at 3 times their market value.

SCAM 5:- An amount of Rs 76 crore and 22 lakh through

sale of hospitality tickets for the final (on April 25), the third place tie (held on April 24) and the two semifinals (all held in Mumbai) is unaccounted for.

Only 30,000 tickets for the final have been accounted for while the stadium (D Y Patil Stadium) was packed to capacity as everyone had seen and it can hold 52,000 people. Over 20,000 tickets are unaccounted for.

Other Financial irregularities • The Income Tax department has received financial

details of more than Rs 150 crore in overseas accounts from some tax haven countries of "non- residents" who invested in the IPL.

• There is an intricate share holding and investments pattern in the various franchises which have routed the money in the IPL through tax havens and sending money in companies there.

• The bid documents reveal huge funding by NRIs in various IPL franchises. But the documents do not reflect the entire financial details of these individuals.

Kochi Tuskers Kerala Scam

Of the 26% held by Rendezvous Sports World in whose name the title rights were vested, the Gaekwads would only get (10%) free plus (1%) paid,

Sunanda Pushkar (5%)(Close to Shashi Tharoor) and another (10%) was reserved for the

brand ambassador for the team.

The old shareholding pattern of KTK was: The new shareholding pattern is:Rendezvous Sports World (26%) Rendezvous Sports World (10%)

Parinee Developers (26%) Parinee Developers (30.6%)

Anchor Earth (27%) Anchor Earth (31.4%)

Film Waves (12%) Film Waves Combine (13.5%)

Anand Shyam (8%) Anand Shyam (9.5%)

Vivek Venugopal (1%) Vivek Venugopal (5%)

• The Kochi consortium alleges that Modi offered them a $50 million bribe to abandon their bid after they had won the Kochi franchise.

• Lalit Modi suspended.• Shashi Tharoor gave his resignation. • On September 19, 2011, the newly elected BCCI

president N Srinivasan, after the annual general meeting in Mumbai, announced that the Kochi Tuskers Kerala IPL franchise was terminated by the BCCI for breaching its terms of agreement. “

Charges against Lalit Modi• That he rigged the auction bidding for two new teams (Kochi and

Pune), and attempted collusive bidding.• That he committed wide-ranging financial violations.• That he holds benami (disguised) stakes in three teams.• That he failed to disclose his direct or indirect interests in

Rajasthan Royals, King’s XI Punjab and Kolkata Knight Riders.• That he tried to intimidate the new Kochi franchise owners into

surrendering it.• That he got an indirect $80 million kickback while renegotiating TV

broadcast rights with Sony after IPL 1. Also, that the broadcast deal was not passed by the IPL’s governing council and has only Modi’s signature.

Conclusion

• Business scams clearly violate business ethics. • Scams exploit typical human qualities such as

greed, honesty, vanity, compassion & irresponsibility.

• “Honesty Is The Best Policy”

THANK YOU…