‘‘Settle all dues before LPL 6” — SLC issues ultimatum to IPG Group
The IPG Group, headed by Indian businessman Anil Mohan, holds the events rights of LPL for 10 years for an annual fee of US$ 1,925,000 with a 10 per cent incremental increase. Though SLC refused to reveal the amount the IPG owes to the Sri Lankan Board, it was confirmed that Mohan had been asked to clear all payments due to SLC before the start of the sixth season on July 25.
“We have formally asked him to settle the dues,” said SLC CEO Ashley de Silva.
However, in the event of a further delay, SLC could deduct it from the fees payable by SLC to the IPG under the Production Services Agreement in relation to the inbound tours. The IPG Group is the Production Services Provider of SLC.
The sixth edition of the LPL is scheduled to run from July 25 to August 25, but the tournament faces uncertainty due to the mounting financial crisis involving, rights payments, franchise payments and player compensation.
SLC recently terminated the franchise agreements of the Jaffna Kings and Colombo Strikers for “violating contractual obligations”. According to these sources, the franchises failed to pay the third and final instalment of player payments—representing 40 percent of agreed compensation—within two weeks of tournament completion, which the IPG Group has to absorb now.
The failure of these franchises to meet their commitments has created a domino effect, placing additional financial pressure on Mohan as the event rights holder. He has been forced to step in and personally cover the outstanding player payments, creating a significant financial burden that has left him unable to meet his own obligations to SLC.
“He (The IPG Group) has had to pay the players following the termination of those two franchises. Also they had to put the entire bill for the Kandy team once when it didn’t have an owner,” said a source, explaining the circumstances which may have led to the delayed payments.
SLC’s primary focus appears to be revenue generation from this tournament, as evidenced by their substantial right holder fee. This year, following a 10 percent annual increase, the fee has reached approximately USD 2.5 million—an exorbitant amount for a tournament of this scale. When the governing body demands such high fees, rights holders inevitably transfer these costs to team owners, creating an unsustainable economic model. This financial imbalance is precisely what has led to the current predicament.
The financial crisis highlights the ongoing challenges facing cricket’s domestic T20 leagues, where franchise sustainability and player payment security remain persistent issues. The LPL, which began in 2020, has struggled with similar financial difficulties in previous seasons.