BCCI fined $9.8 million by government for ‘unfair’ practices in IPL commercial contracts

THE ASSOCIATED PRESS

NEW DELHI — The Board of Control for Cricket in India was fined $9.8 million by the government, which described the board’s unfair practices related to Indian Premier League contracts as “abuse of a grave nature” on Friday.

The Competition Commission of India asked the BCCI to “cease and desist” denying market access to potential competitors.

The penalty from the CCI, set up to eliminate practices that have an adverse effect on competition, was the result of investigating IPL deals for more than two years.

It’s yet another setback for the BCCI. It was served a $433 million income tax notice last year, and its IPL franchise, the Rajasthan Royals, was fined $18.8 million this week by India’s Enforcement Directorate for flouting foreign exchange rules.

The CCI investigated the BCCI on whether it had abused its dominant position in respect to selection of players, media rights, composition of franchise teams, choice of stadia, and logistics contracts.

“Virtually, there is no other competitor in the market nor was anyone allowed to emerge due to BCCI’s strategy of monopolizing the entire market,” the order said. “The abuse was of a grave nature and the quantum of penalty that needs to be levied should be commensurate with the gravity of the violation.”

The BCCI’s cash-rich IPL has been riddled with controversies since it began in 2008, with teams chopped and changed, sometimes at the behest of court orders.

09:30ET 08-02-13