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Our Bureau

Mumbai , Sept. 21

THE Board of Control for Cricket in India (BCCI) today told the Bombay High Court that it is cancelling the tender process for the telecast of cricket matches to be played in India between October 2004 and September 2008.

Following this submission, ESPN-Star Sports withdrew its petition against BCCI for awarding the telecast rights to Zee Telefilms Ltd (ZTL).

These developments appear to have temporarily scuttled ZTL's plan to enter sports broadcasting.

Mr Subhash Chandra, Chairman and Managing Director, ZTL, visibly disappointed with the proceedings in the Court, told journalists that he suspected a conspiracy between BCCI and ESPN-Star Sports.

ZTL plans to file a petition against BCCI in the Supreme Court on Wednesday. It is likely to be filed under Article 32 of the Constitution.

BCCI Counsel, Mr K.K. Venugopal, told the division bench of Chief Justice Mr Dalveer Bhandari and Mr Justice Dhananjay Chandrachud that there was no concluding contractual agreement between the cricket board and ZTL.

A draft letter of intent (LoI) was offered to ZTL; however, the latter did not accept it, as it wanted to renegotiate on some of the conditions, Mr Venugopal said. BCCI is, therefore, exercising its power to cancel the tender process. As there is urgency to finalise the arrangements for production and telecast of the India-Australia series, the Board is looking at producing and telecasting on its own, Mr Venugopal said.

The Board is also examining the option of going in for two sets of bids - one for the first three series (India-Australia; India-South Africa and India-Pakistan) and the second for cricket matches played in India for a period of four years commencing May 2005.

However, Mr Rafique Dada appearing for Zee, argued that the network was ready to produce the India-Australia series. It has already initiated discussions with a couple of production companies.

Mr Dada told the court that BCCI was making statements contrary to its affidavit. "Why should they defer from their earlier stand and go for a re-bid?" he asked the court.

ZTL has also submitted an initial surety amount of $20 million (around Rs 92 crore). To this point, the BCCI lawyer said that the Board would return the money to the company. In the first tender for telecast floated by BCCI, Zee had emerged the highest bidder at $260 million (around Rs 1,194 crore) and later hiked the amount to $308 million (around Rs 1,415 crore) during subsequent rounds of negotiations. BCCI had selected ZTL as the broadcaster for these telecast rights.

ESPN-Star Sports, which was the second highest bidder at $230 million (around Rs 1,056 crore), then filed a writ petition in the Bombay High Court against BCCI's decision.

The share movement of ZTL on the Bombay Stock Exchange bore testimony to how equity investors perceive these developments. ZTL's shares, on an upturn ever since it emerged as the highest bidder, fell to Rs 148.45 from the previous close of Rs 153.80 including an intra-day low of Rs 145.25.

According to industry sources and company officials, cricket as a property would have helped ZTL drive up its earnings potential and enhance its distribution network.

Responding to the Court developments, ZTL said in its statement, "BCCI has given us an LoI and have taken $20 million (around Rs 92 crore) from us. So how can anyone say that the rights do not legitimately belong to us?"

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