The Punjab Kings, one of the original franchises in the Indian Premier League (IPL), is facing internal turmoil as a significant disagreement among its owners has escalated to the courts. Preity Zinta, one of the four promoters of the franchise, has filed a legal appeal seeking to restrain her co-owner, Mohit Burman, from selling a portion of his shares.
The Legal Dispute
Preity Zinta, who holds a 23% stake in Punjab Kings through KPH Dream Cricket Private Limited, has approached the State High Court in Chandigarh. Her petition is directed against Mohit Burman, who holds the largest share in the franchise with a 48% stake. Zinta’s legal appeal, filed under Section 9 of the Arbitration and Conciliation Act of 1996, seeks interim measures and directions regarding the disputes and differences that have arisen between her and Burman.
The dispute reportedly centers around Burman’s alleged plans to sell 11.5% of his stake to an unnamed party. According to sources close to the matter, the internal agreement among the promoters mandates that any stake intended for sale must first be offered to the existing promoters. Only if the current promoters decline to purchase the stake can it be sold to an outside party. Additionally, this offer must be time-bound, preventing an open-ended sale.
Denial of Sale Plans
Despite the legal action, Mohit Burman, who is associated with the Dabur Group, has categorically denied any intentions to sell his shares. In a statement to Cricbuzz, Burman said, “I don’t have any plans to sell my shares.” This denial adds a layer of complexity to the situation, as it contradicts the reports suggesting that Burman was in discussions to offload a portion of his stake.
Preity Zinta, on the other hand, has not publicly commented on the matter. Efforts by Cricbuzz to obtain her response were unsuccessful. Ness Wadia, another co-owner with a 23% stake, and Karan Paul, the fourth owner, also did not respond to inquiries.
The Stakes and Valuation
The stakes in this dispute are high, given the soaring valuation of IPL franchises. Since the inclusion of two new teams in 2022, the value of the IPL franchises has seen a remarkable increase. On average, even a moderately successful franchise can command a value of up to $700 million (approximately INR 5800 crore). The 11.5% stake in question could, therefore, be valued at approximately INR 540-600 crore.
The Road Ahead
The case is scheduled for a hearing on August 20, 2024. The outcome of this legal battle could have significant implications not only for the ownership structure of Punjab Kings but also for the broader dynamics within the IPL. With the next big auction approaching and the franchise reportedly looking for an Indian coach to replace Trevor Bayliss, the resolution of this dispute will be crucial for the team’s future planning.
Punjab Kings have had a mixed performance in the IPL over the years. Despite being one of the original eight teams, they have reached the finals only once and the semifinals once in the 17 seasons of the league. As the franchise navigates these internal challenges, fans and stakeholders will be keenly watching how the situation unfolds and what impact it will have on the team’s on-field performance.
This dispute highlights the increasing complexities and high stakes involved in the ownership of IPL franchises, where financial, legal, and personal interests often intersect in ways that can significantly impact the game.
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