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Sep 14, 2012 at 11:53pm IST

Deccan IPL contract terminated: Sources

New Delhi: The BCCI on Friday terminated the contract of the IPL franchise Deccan Chargers, possibly on the grounds of several management woes that came into light with the Hyderabad-based unit, sources told CNN-IBN.

Although the decision on the fate of Deccan was expected to be taken at BCCI's special general body meeting on Saturday, an emergency meeting of the IPL governing council late on Friday night ensured that the franchise did not get a chance at the final throw of the dice.

The scrapping of Deccan has also cleared the path for BCCI to announce an auction for a new city franchise. CNN-IBN has also learned the board will look for prospective buyers by asking for new tenders on Saturday. Five or six new cities are likely to be announced and that the highest successful bidder will get the city of their choice.

The move came a day after the cash-strapped franchise went unsold in an auction in Chennai after the team's owners and lenders rejected the only bid of Rs 900 crore from a Hyderabad-based filmmaker and financier PVP Ventures.

Sources had earlier told CNN-IBN that PVP Ventures offered Rs 900 crore through a staggered payment module, in which Rs 450 crore were offered to be paid through a period of five years, with Rs 90 crore each year. The remaining Rs 450 crore were to be given in the form of convertible debentures, payable after five years.

It is also learned that PVP Ventures offered to clear the outstanding players' salaries amount of Rs 36 crore immediately. However, it has been learnt that it all fell through after the concerning banks asked for a bank guarantee of Rs 450 crore upfront - that the bidder refused, resulting in the bid being rejected.

After struggling on the field for two seasons, Deccan have been blighted by management woes after it was revealed that several players had not been paid their salary dues due to the financial trouble of the franchise’s present owners, the media company Deccan Chronicle Holdings (DCH).

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