Terminated Deccan Chargers
In a recent announcement, Deccan Chronicle Holdings (DCHL) has revealed intentions to divest their IPL franchise, the Deccan Chargers. This shift marks a potential transition towards another real estate firm following the steps of DLF into the Indian Premier League (IPL). Kamla Landmarc, a prominent real estate company rooted in Mumbai, appears eager to seize this cricketing opportunity.
Last month, the Board of Control for Cricket in India (BCCI) took decisive action by terminating the Deccan Chargers' license, citing their inability to meet a deadline concerning overdue player fees. In response, the Deccan Chargers have brought their case to court, with no resolution forthcoming as of yet.
Under the strategic vision of businessman Ramesh Jain, Kamla Landmarc has accumulated both commercial and residential real estate assets across Mumbai's suburban landscape.
Established in the competitive Mumbai real estate scene, this company has enjoyed considerable success, and they now aim to extend their ambitions into cricket by purchasing the troubled IPL franchise, Deccan Chargers.
According to DCHL, dialogues are ongoing with Kamla Landmarc regarding the sale of the IPL franchise. Furthermore, DCHL has granted authority to its board of directors to proceed with this transaction.
In a filing with the Bombay Stock Exchange (BSE), DCHL explicitly noted that the board has been empowered to sell, transfer, or dispose of the franchise to Kamla Landmarc Real Estate Holdings Private Limited. The board approved the draft proposal during a meeting on October 11, although specifics regarding the financial agreement remain undisclosed, with company officials withholding comments on this matter.
Insights from the Daily News & Analysis suggest that the deal might culminate around a substantial sum of $190 million (approximately Dh697 million).
It’s pertinent to mention that the board’s decision is pending approval from DCHL's shareholders. Following the announcement, there was a notable surge of 4.92 percent in the company's shares on the BSE.
As for the BCCI, no statements have been issued regarding the proposed sale of the Deccan Chargers, a franchise based in Hyderabad. Originally purchased in 2008 before the IPL's inaugural season, this team was acquired by Deccan Chronicle for a staggering $107 million and claimed the championship title in 2009. Nevertheless, this season proved challenging; the team ended up near the bottom of the standings, despite boasting world-class players such as Kumar Sangakkara, Dale Steyn, and Cameron White.