Chennai-based SUN TV has bought the cash-strapped Indian Premier League (IPL) side Deccan Chargers for Rs. 85.05 crores per year, it was announced on Thursday
The Hyderabad franchise was earlier owned by Deccan Chronicle Holdings Ltd (DCHL)
The Sun TV Network bid was substantially higher than the second bid of PVP Ventures, which was Rs. 69.03 crores, according to a press release of the Board of Control for Cricket in India (BCCI).
"Sun TV Network have won the Hyderabad Franchise for an amount of Rs 85.05 crores per year. This Franchise fee represents a premium of over a 100 % above the amount paid by DCHL for the Hyderabad Franchise in 2008," BCCI Secretary Sanjay Jagdale said in a release.
"The Sun TV Network bid was substantially higher than the second bid of PVP Ventures, which was Rs 69.03 crores," Jagdale said.
Deccan Chargers in action during the 2012 IPL season
The BCCI had floated the tenders for a new IPL franchise after terminating Deccan Chargers' contract on September 15.
The team owners DCHL challenge against the termination was quashed by the Bombay High Court, which ruled in favour of the BCCI after Deccan Chargers Holdings Limited failed to furnish bank guarantee of Rs 100 crore before October 12 5pm deadline.
Later, an arbitrator had ordered for status quo but the High Court again ruled in favour of the Board. DCHL then approached the Supreme Court, which declined on October 19 to interfere with the High Court decision which had set aside the status quo order passed by the arbitrator.
DCHL, a media company, bought the Hyderabad-based team for $107 million before the inaugural IPL in 2008.