Why Deccan Chargers were terminated from Indian Premier League
What's the story
Deccan Chargers, one of the eight IPL franchises from the inaugural season, was terminated on October 12, 2012. The franchise's owners, Deccan Chronicle Holdings Limited (DCHL), were unable to pay their players and foreign boards. They also mortgaged their team ownership rights to two major Indian banks, which raised concerns over the franchise's financial stability. Here's a detailed look at what went wrong for Deccan Chargers.
Financial woes
BCCI gives ultimatum to DCHL
Under pressure from lenders, DCHL put the franchise up for sale in September 2012.
The Board of Control for Cricket in India (BCCI) gave the franchise until the end of August to pay its players their dues.
However, when they failed to do so, the board sought an explanation from DCHL regarding their decision to mortgage team ownership rights.
Termination
Termination of franchise
On September 14, 2012, the BCCI terminated the Deccan Chargers franchise due to payment defaults and potential negative effects on IPL.
DCHL challenged this decision in court but was unsuccessful.
The Bombay High Court had earlier ordered DCHL to pay ₹100 crore as a bank guarantee by October 12, failing which they would be terminated from the IPL.
Court ruling
Court upholds termination order
On October 13, 2012, the Chargers approached CK Thakkar, a court-appointed arbitrator who stayed the termination order.
However, the BCCI filed for an "urgent" hearing in the High Court against Thakkar's decision.
The court upheld its earlier ruling and denied any relief to DCHL.
This paved the way for BCCI to invite bidders for a new franchise after terminating Deccan Chargers from the IPL.
Information
Sun TV Network acquired Hyderabad franchise
Following Deccan Chargers' termination, the BCCI invited bids for a new IPL team in October 2012. Sun TV Network won the Hyderabad franchise for ₹85.05 crore per year. They officially named the team Sunrisers Hyderabad (SRH) ahead of the 2013 season.
Performance
How Chargers fared in IPL
The Chargers had a topsy-turvy five-season journey in the IPL.
After finishing last in the inaugural edition, they made a historic turnaround. The Adam Gilchrist-led side won the 2009 season scheduled in South Africa.
DC, who reached the semi-finals in 2010, had bottom-half finishes in the next two seasons (2011 and 2012).