The IPL Controversy & related legal issues

The IPL Controversy & related legal issues

Supreme Court of India in the case of Zee Telefilms Ltd. Versus Union of India (2005) 4 SCC 649 had this to say regarding what cricket means to India and I quote:-

“178. we have laid down the tests aforesaid and the approach which needs to be adopted in determining the issue as to whether the Board is a State or not. Before we embark on this enquiry, it would be necessary to keep in mind as to what cricket means to the citizens of this country.

179. Cricket in India is the most popular game. When India plays in international fora, it attracts the attention of millions of people. The win or loss of the game brings ‘joy’ or ‘sorrow’ to them. To some lovers of the game, it is a passion, to a lot more it is an obsession, nay a craze. For a large number of viewers, it is not enthusiasm alone but involvement.”

Good Evening Mumbai ! – Hollered an unusually boisterous Sharad Pawar to the to the loud cheers of the 50,000 strong captive audience;

‘I am extremely proud that whatever we have seen over the last forty four days’ is a product of India. Today’s final match will be watched in 122 countries – he then went on to add that during IPL’s first season, families had spent more time together , had dinner together, while watching the wholesome entertainment. That was IPL. This is the language used in the past to describe the success of television serials like ‘Kaun Banega Crorepati (KBC).

Another IPL architect Lailt Modi sang the same notes and emphasized that the tournaments’ idea was statement from India to the world. It is a global representation of India and what the modern India stands for and its successes.

This was the new India, where grotesque display of wealth by IPL team owners and their army of celebrity friends was part of entertainment package. The richest family of India descending in the stadia from the sky in their Silver Grey Bell Chopper with bold Green Reliance Industries logo.

Are we not reminded of Chelsea ‘s new oligarch owner Roman Abromovich who by his big money has changed the English premier league. ( EPL).

The Atmosphere in the stadium was electric what followed was further demonstration of the fun of watching spats live, the Atmosphere thrill, excitement – who then cares, if he had to spend thousands for a small plastic seat to put his butt on and pay through ones nose at limited stalls put up by partners of IPL.

Whos idea was IPL; was it the brain child of Mr. Lalit Modi or was it the Late Madav Rao Scindia who first propped up the idea of an inter city cricket league along the lines of the English Football League. It is said that Mr. Scindia had got the International Sports Marketing and Management Firm IMG to prepare a blue print of the league around 1996. Now the true fact is that tracking the events which involved BCCI or the birth of T -20 in India is a very daunting task. Some people believe that it was Mr. Modi who had floated the idea of inter city league way back in 1990 looking at the success of NBA’s basketball franchise model in America and he had got together some people from the advertising world and a former cricketer who was the head of the newly created professional cricketer’s Association in the mid 1990’s, and they prepared a project feasibility Report for an intercity league in 1990’s but the BCCI was not interested in it.

The owner of Delhi Daredevils GMR Group claims that it too had pushed for an IPL like league. Another advertising and Public Relation Company Percept also boasts of a similar idea. Interestingly the BCCI all along was averse to the idea of a T-20 league. India then took part in World Cup of T-20, and emerged a winner. Interestingly before that it had just played one solitary international T-20 game against South Africa. But the true reality is that it was the rival ICL of Subash Chandra of Zee Network which brought the IPL finally together. This was June of the Year 2007. Mr. Chandra had got the ICL going only because BCCI was always pushing the Zee Network out of the arena of telecasting rights. Chandra got Kapil Dev’s support who was genuinely interested in improving the state of cricket in India -ICL’s first season met with a disaster. This was the chance which Mr. Modi and company were waiting for. In Sept of 2007 BCCI held a meeting in Singapore with heads of cricket of South Africa and Cricket Australia to discuss the commercial viability of IPL and creation of a championship league, and to share the profits.

After which began the search for owners, a list of big investors was prepared- Feelers were sent to them, while ICL was busy picking up retired cricketers, IPL emerged ahead with the blessings of ICC (International Cricket Council).

Indian Premier League (IPL) has had three successful seasons so far. It has faced pretty politics, confusion, chaos and to say the least over sized egos. The venue for the second season had to be shifted out of India for security reasons during the year of general elections in the country. Why was South Africa the alternate choice, many different versions exist but it was cheaper than other places is the real answer.

Mr. Modi the IPL Commissioner has so far kept a brave face against the controversies with which IPL is surrounded now, aided by his mentor Shri Sharad Pawar former president of BCCI and now recently elected president of ICC beating none other than Mr. Haward former Prime Minister of Australia.

Right in the beginning of the third season (2010) controversies began to emerge and cloud the IPL. The exclusion of Pakistani players and later the resignation of Shri Shashi Tharoor. The IPL has now earned the name of Indian Political League or is it the Indian Paisa League. Tharoor’s exit paved the way of investigation into the bidding activities of IPL. Did Modi support people to invest their Black money into IPL. The BCCI is divided into two groups over Mr. Modi. There are allegations of Match fixing which are of course yet to be proved. Finally Mr. Modi has been suspended by the BCCI as the commissioner of IPL. He was served with a notice to show cause. Mr. Modi has filed his reply to the Show Cause Notice, but before the Disciplinary Committee of BCCI could began the proceeding, Mr. Modi then challenged the constitution of the disciplinary committee before the Mumbai High Court. The High Court refused to entertain his petition. Therefore, one blow after another blow.

The above stated scenario has given impetus to a long standing need for a well structured Sports Law regime in India. The nature of sport and its place in the society has changed. While some amateur sports can still be managed without help of professional management & lawyers but with the emerging commercial operations involvement of law is inevitable. Can the aforementioned problems or controversies be solved in the exciting framework, the answer is no. Therefore, how should we deal with the fast emerging legal issues which relate to the franchises, salary caps, central revenue, player auctions, transfers and members of Governing Councils. We have to now travel beyond the times when signing of contracts by players with Coke and Pepsi. Was the only legal involvement which reached the lawyer’s desk.

Conflict of interests such as team ownerships and powers as members of IPL Governing Council, will have to be dealt with very strictly. No member of the governing council in my opinion should be elected who has a financial stake in a team.

The honorary governing body position also must be conferred upon persons who are independent. Their only interest should be in the administration of the league.

The BCCI role or bodies which control a sport should be such that their interests should be more inclined towards selecting national teams, to play for the country’s honour. There has to be a clean bifurcation between these who opt to play for private team owners and those who play for the country.

There has to be complete transparency in the corporate structure of the leagues. Monitored by a regulatory body. Unless we have the aforesaid in place the future of IPL and some of the other leagues which have come up in the country will be bleak.

But one can look at the aforesaid scenario in a positive way. The IPL’s growth into a multi billion dollar enterprise has led the Indian sport to grow out of its cocoon which was, that sport is only a metaphor for patriotism and national pride. Today we already have the Premier Hockey League (2005), the Indian Cricket League (2007), of course the Indian premier league (IPL), the Kerala Volleyball League, the Indian Tennis League and some State Cricket Leagues. These are sports which have joined the sports league bandwagon.

Almost all the sports leagues in the world operate independent of the sports governing bodies. US Basketball has no say in National Basketball Association (NBA) same as Football Association in the United Kingdom has no control over the English Premier League. However in India, all the Sports Leagues have been organized either directly by, or in conjunction with the governing body of the sport with the only exception of ICL of Indian Cricket League which tried to operate outside BCCI’s framework but met with disastrous consequences therefore, the Indian model appears to be ‘mixed’ involving sports federation and private investors. The transparency and efficiency of governmental sports and federations has been questionable. Political personalities have for years been able to corner plum posts in the federations.

Therefore operation of franchise based sporting league model, involving big private investments brings a huge challenge of maintaining credibility and fair play.

One has to remember then restrictive and anti competitive role played by BCCI in shutting down the IPL.

The controversies that plague the IPL has caused a gloom over the enthusiasm for league based sports in India. There is of course the option of keeping the government completely out and develop these leagues as independent properties, as attempted by the IPL.

If we look at the International Scenario leagues all over the world have worked very hard to ensure their credibility they have changed their policies from time to time and developed a self improved Regulatory mechanism to ensure that immoral and unethical activities are tackled swiftly without affecting their credibility.

IPL has suffered most on account of concentration of powers in the hands of few. The other factors are which disclosing dollar values of deals, there has been lack of transparency in showing the documents. Almost all successful leagues have made their constitutional documents freely available for public knowledge and scrutiny. Therefore, the sports in India need to be freed from the shakels of government and its instruments. Sports persons want the same recognition which they deserve along with the earnings so that they can claim the positions they deserve in the society. What ails IPL today does not mean there are no merits in the franchise based sports leagues.

An organized and responsive legal frame work which will secure the rights and ensure compliance, will help Indian Sports Leagues and Indian Sports of the future.