Sri Lanka Cricket yesterday in a statement clarified recent media reports that the Innovative Production Group (IPG) had defaulted on its payment obligations under the Lanka Premier League (LPL) Event Rights Agreement.
“We wish to clarify that pursuant to the open tender process carried out by Sri Lanka Cricket, Innovative Production Group FZE (IPG), a company incorporated in Dubai was granted the ‘Event Rights,’ in respect of Lanka Premier League Tournament for a period of five years, commencing from the year 2020. Accordingly, the IPG entered into a contract with Sri Lanka Cricket wherein the company obliged to pay $ 1,925,000 per year as the ‘Event Rights Fee’ for the years 2020 and 2021,” stated an SLC release.
“Out of the rights fee payable for the year 2020, $ 150,000 was set off against the ‘Bid Collateral’ paid by the IPG during the submission of the tender, and another $ 850,000 was paid consequently, marking the total sum paid by the IPG to $ 1 Million,” it continued.
“In consideration of the uncertainties created by the COVID-19 including the negative effects created by player pull-outs, an unexpected wave of COVID-19 occurred in Sri Lanka during the month of October, zero revenue from ticketing due to matches played in closed doors, lack of sufficient time available for franchisees to sell sponsorships, additional cost involved with flights, quarantine protocols, freight charges, and full board meals due to travel restrictions, etc. and in particular, due to the fact that relevant health guidelines and government approvals to proceed with the LPL 2020 were received few weeks before the commencement of the tournament. Hence, IPG requested concessions with regard to the payment of balance portion of the ‘Event Rights Fee Payment’ in respect of the year 2020.
“Having taken into consideration the request made by IPG, in view of the said circumstances which were beyond the reasonable control of the IPG, The Executive Committee of Sri Lanka Cricket provided a payment plan where the balance ‘Event Rights Fee’ to be recovered from the IPG out of the money payable by SLC to the IPG under the ‘Production Services Agreement’.
“This is in view of the fact that IPG is also contracted with SLC to provide Television Production Services for Sri Lanka’s International Inbound Tours until 2023, with a total production value of $ 4.3 Million.
“Moreover, we wish to state that in compliance with the agreement reached between the parties, SLC has already taken steps to recover $ 200,000 from the total sum payable to IPG under the said Production Services Agreement, marking the balance to be recovered totalling $ 725,000 within the next span of time period, prior to the commencement of the LPL 2021 along with the interest payment applicable thereto,” the statement concluded.