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Sri Lankan sponsorship deal under review Ralph Dellor - 23 January 2001
Reports from Sri Lanka suggest that the sponsorship rights agreement between the Board of Control for Cricket in Sri Lanka (BCCSL) and World Sport Group Nimbus has hit problems. The agreement, giving sponsorship and media rights to WSG Nimbus for the period 2001 - 2003, was signed in Colombo on December 3rd, with the first payment due to be made on January 20th. However, in a letter from BCCSL secretary Mohan de Silva to the Minister for Tourism and Sports, Dr. P. Ramanujam, it is alleged that this payment has not been made. The BCCSL met on 19th January to discuss the matter and, after taking legal advice, unanimously decided to implement a clause in the agreement whereby WSG Nimbus would forfeit any advances paid if the bank guarantee had failed to be honoured by the relevant date. The Sri Lankan Board wrote to WSG Nimbus on the 22nd January, stating that the entire agreement had been terminated as from January 20th in view of the alleged failure to meet financial requirements. WSG Nimbus countered this decision with a statement to the effect that the company's obligations to the BCCSL are conditional on the Board providing confirmation that the itineraries of tours to Sri Lanka are acceptable to the relevant national boards. WSG Nimbus claims that this confirmation has not been forthcoming, but that the company "remains ready, willing and able to move forward once all relevant conditions under the Agreement have been fulfilled." It is thought that a number of deals selling on media rights have already been concluded but, notwithstanding the WSG-Nimbus reply, the BCCSL has decided to re-open negotiations with the second highest bidder in the original round of negotiations, Trans World International. The Board hopes to resolve the matter in time for a firm agreement to be put in place before the forthcoming tour of Sri Lanka by England. The first match of that tour is planned for Moratuwa on February 5th, with the First Test scheduled for Galle on February 22nd.
© CricInfo Ltd.
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