Contract between Indian Premier League (IPL) and [Franchise Name]

between
The Indian Premier League (IPL)
and
[Franchise Name]
This Comprehensive Franchise Agreement (hereinafter referred to as the "Agreement") is
made and entered into on this [Day] day of [Month], [Year]
BY AND BETWEEN
The Indian Premier League, a sub-committee of the Board of Control for Cricket in India,
having its principal office at [Address] (hereinafter referred to as "IPL", which expression
shall, unless repugnant to the context or meaning thereof, include its successors and
permitted assigns) of the FIRST PART;
AND
[Franchise Name], a company incorporated under the Companies Act, 2013, having its
registered office at [Address] (hereinafter referred to as the "Franchise", which expression
shall, unless repugnant to the context or meaning thereof, include its successors and
permitted assigns) of the SECOND PART.
WHEREAS:
A. The IPL is a professional Twenty20 cricket league in India conceptualized and operated by
the Board of Control for Cricket in India (BCCI).
B. The Franchise has been awarded the right to operate a team in the IPL through a
competitive bidding process.
C. The parties wish to record the terms and conditions governing their relationship.
NOW, THEREFORE, in consideration of the foregoing and the respective covenants and
agreements set forth in this Agreement, the sufficiency and receipt of which consideration is
hereby acknowledged, the parties hereby agree as follows:
1. Definitions and Interpretation
1.1 Definitions: In this Agreement, unless the context otherwise requires, the following
terms shall have the meanings assigned to them herein:
a) "BCCI" means the Board of Control for Cricket in India. b) "Broadcast Rights" means the
right to broadcast or transmit the Matches by any means. c) "Central Rights" means all rights
centrally exploited by IPL including but not limited to Broadcast Rights and Central
Sponsorship Rights. d) "Central Sponsorship Rights" means sponsorship rights exploited by
IPL on behalf of all franchises. e) "Confidential Information" means any information
disclosed by one party to the other under this Agreement, which is designated as
confidential or would reasonably be understood to be confidential. f) "Franchise Rights"
means all rights granted to the Franchise under this Agreement. g) "Intellectual Property
Rights" means all copyright, patents, trademarks, service marks, trade names, domain name
rights, rights in designs, and all other intellectual property rights. h) "Matches" means the
cricket matches forming part of the Tournament. i) "Player(s)" means the cricket players
contracted to play for the Franchise. j) "Player Auction" means the annual auction for the
acquisition of Players by the franchises. k) "Season" means the period in each year during
which the Tournament takes place. l) "Team" means the team of Players representing the
Franchise in the Tournament. m) "Tournament" means the annual Indian Premier League
Twenty20 cricket competition.
1.2 Interpretation: In this Agreement, unless the context otherwise requires: a) References
to clauses and schedules are to clauses and schedules of this Agreement. b) The headings
are for convenience only and shall not affect the interpretation of this Agreement. c) Words
importing the singular include the plural and vice versa. d) References to a "person" include
any individual, company, corporation, firm, partnership, joint venture, association,
organization, institution, trust or agency, whether or not having a separate legal personality.
e) References to any statute or statutory provision include any statute or statutory provision
which amends, extends, consolidates or replaces the same.
2. Grant of Franchise
2.1 Grant: IPL hereby grants to the Franchise, and the Franchise hereby accepts, the right to
operate a Team in the Tournament, subject to the terms and conditions of this Agreement.
2.2 Term: This Agreement shall commence on the date hereof and shall continue in
perpetuity unless terminated earlier in accordance with the provisions of this Agreement.
2.3 Exclusivity: The Franchise shall have the exclusive right to operate the Team in
[City/Region], subject to compliance with this Agreement.
2.4 Franchise Rights: The Franchise Rights shall include: a) The right to operate and manage
the Team. b) The right to receive a share of Central Rights income as set out in Clause 6. c)
The right to exploit Local Franchise Rights as set out in Clause 7. d) The right to use IPL and
Team Intellectual Property Rights as set out in Clause 8.
2.5 No Sub-Licensing: The Franchise shall not sub-license, assign or otherwise transfer any of
the Franchise Rights without the prior written consent of IPL.
3. Franchise Obligations
3.1 General Obligations: The Franchise shall: a) Operate the Team in accordance with this
Agreement and all applicable IPL regulations and directives. b) Maintain the highest
standards of professionalism, integrity, and sportsmanship. c) Promote the Tournament and
the sport of cricket. d) Comply with all applicable laws and regulations.
3.2 Team Obligations: a) The Franchise shall field a Team for all Matches as scheduled by IPL.
b) The Team shall comprise Players selected in accordance with IPL regulations. c) The
Franchise shall ensure that all Players and Team officials comply with IPL regulations and
directives.
3.3 Venue and Facilities: a) The Franchise shall procure a suitable venue for home Matches,
subject to IPL approval. b) The venue shall meet all IPL standards and requirements for
hosting Matches. c) The Franchise shall bear all costs associated with the venue, including
but not limited to rent, maintenance, and match-day operations.
3.4 Financial Obligations: a) The Franchise shall pay the Franchise Fee as set out in Clause 4.
b) The Franchise shall maintain financial stability and solvency throughout the Term. c) The
Franchise shall provide IPL with audited annual financial statements within 90 days of the
end of each financial year.
3.5 Compliance and Reporting: a) The Franchise shall comply with all IPL regulations,
including but not limited to: i) Anti-corruption and anti-doping policies ii) Code of conduct
for players and officials iii) Marketing and branding guidelines b) The Franchise shall
promptly report to IPL any breaches or suspected breaches of IPL regulations. c) The
Franchise shall provide IPL with all information reasonably requested regarding the
operation of the Team and the Franchise.
4. Franchise Fee
4.1 Amount: The Franchise shall pay to IPL a Franchise Fee of [Amount] (the "Franchise
Fee").
4.2 Payment Schedule: The Franchise Fee shall be paid in ten (10) equal annual installments,
with the first installment due on [Date] and subsequent installments due on the same date
each year thereafter.
4.3 Late Payment: Any late payment of the Franchise Fee shall incur interest at the rate of
12% per annum, calculated daily from the due date until the date of actual payment.
4.4 Taxes: All payments under this Agreement shall be made free and clear of any
deductions or withholdings. If any deduction or withholding is required by law, the Franchise
shall pay such additional amount as is necessary to ensure that IPL receives the full amount
it would have received had no such deduction or withholding been made.
5. Team Composition and Player Contracts
5.1 Squad Size: a) The Franchise shall maintain a squad of no less than 16 and no more than
25 Players. b) The squad shall include at least one physiotherapist and one coach.
5.2 Player Categories: a) The squad shall include no more than 10 foreign Players. b) The
squad shall include at least 8 local Players (eligible to represent India). c) The squad shall
include at least 2 Players from the BCCI under-22 pool.
5.3 Playing XI: a) In any Match, the playing XI shall include no more than 4 foreign Players. b)
The Franchise shall ensure compliance with any other playing XI requirements set by IPL.
5.4 Player Acquisition: The Franchise may acquire Players through the following methods: a)
Annual Player Auction b) Direct recruitment of uncapped Indian Players c) Trading with other
franchises during designated trading windows d) Replacement signings (subject to IPL
approval) in case of injuries or unavailability
5.5 Player Contracts: a) All Player contracts shall be for a minimum duration of one year and
a maximum of three years. b) Player contracts shall be in the standard form prescribed by
IPL. c) The Franchise shall register all Player contracts with IPL within 7 days of execution.
5.6 Player Remuneration: a) The Franchise shall comply with any salary cap or other financial
regulations imposed by IPL. b) Players shall be paid a minimum of 25% of their annual
contract value regardless of the number of Matches played. c) The Franchise shall make all
payments to Players in accordance with the terms of their contracts and IPL regulations.
5.7 Player Welfare: The Franchise shall be responsible for: a) Providing appropriate medical
and training facilities for Players b) Arranging suitable accommodation and travel for Players
c) Ensuring compliance with all health and safety regulations
6. Central Rights and Revenue Sharing
6.1 Central Rights: IPL shall have the exclusive right to exploit all Central Rights, including but
not limited to: a) Broadcast Rights b) Central Sponsorship Rights c) Official licensed
merchandise rights
6.2 Revenue Sharing: The Franchise shall be entitled to the following share of Central Rights
revenue: a) 80% of Broadcast Rights revenue allocated to franchises b) 60% of Central
Sponsorship Rights revenue allocated to franchises c) 80% of gate receipts from home
Matches
6.3 Payment: IPL shall pay the Franchise's share of Central Rights revenue within 60 days of
the end of each Season, accompanied by a detailed statement of calculation.
6.4 Audit Rights: The Franchise shall have the right to audit IPL's books and records relating
to Central Rights revenue once per year, at its own expense, upon giving reasonable notice
to IPL.
7. Local Franchise Rights
7.1 Local Rights: The Franchise shall have the exclusive right to exploit the following Local
Franchise Rights within its designated territory: a) Team sponsorship and partnership rights
b) In-stadium advertising rights for home Matches c) Local merchandising rights d)
Hospitality rights for home Matches
7.2 Approvals: The exploitation of Local Franchise Rights shall be subject to IPL's prior
approval, not to be unreasonably withheld or delayed.
7.3 Revenue Retention: The Franchise shall retain 100% of the revenue generated from Local
Franchise Rights.
7.4 Reporting: The Franchise shall provide IPL with a detailed report of all revenue generated
from Local Franchise Rights within 60 days of the end of each Season.
8. Intellectual Property Rights
8.1 IPL Marks: IPL grants the Franchise a non-exclusive license to use IPL marks in connection
with the operation of the Team and exploitation of Franchise Rights, subject to IPL's brand
guidelines.
8.2 Team Marks: The Franchise shall develop Team marks, subject to IPL approval. IPL shall
have a royalty-free license to use Team marks in connection with the Tournament and
Central Rights.
8.3 Ownership: All Intellectual Property Rights created by or on behalf of IPL shall be owned
by IPL. All Intellectual Property Rights created by or on behalf of the Franchise shall be
owned by the Franchise, subject to IPL's approval rights.
8.4 Protection: Each party shall take all reasonable steps to protect the other party's
Intellectual Property Rights and shall promptly notify the other of any infringement or
potential infringement.
9. Governance and Compliance
9.1 Ownership Disclosure: a) The Franchise shall disclose its complete shareholding pattern
to IPL at the time of signing this Agreement and annually thereafter. b) Any change in
ownership or control of more than 5% of the Franchise's shares shall require prior written
approval from IPL.
9.2 Corporate Governance: a) The Franchise shall maintain proper books of accounts and
records. b) The Franchise shall appoint a reputable firm of chartered accountants as
auditors. c) The Franchise shall comply with all applicable corporate governance norms and
regulations.
9.3 Anti-Corruption: a) The Franchise shall comply with IPL's anti-corruption code and all
applicable anti-corruption laws. b) The Franchise shall implement robust internal controls to
prevent corrupt practices. c) The Franchise shall promptly report any suspicious activities to
IPL's anti-corruption unit.
9.4 Anti-Doping: a) The Franchise shall comply with IPL's anti-doping code and the World
Anti-Doping Agency code. b) The Franchise shall educate its Players and staff about anti-
doping regulations and procedures. c) The Franchise shall cooperate fully with any anti-
doping investigations or proceedings.
10. Marketing and Promotions
10.1 Marketing Obligations: The Franchise shall: a) Promote the Team and the Tournament
in its designated territory b) Participate in IPL's central marketing initiatives c) Comply with
IPL's marketing and branding guidelines
10.2 Player Appearances: The Franchise shall make Players available for a reasonable
number of promotional appearances as requested by IPL.
10.3 Digital Media: The Franchise shall maintain official Team accounts on major social
media platforms and a Team website, subject to IPL guidelines.
10.4 Merchandise: The Franchise shall produce and sell official Team merchandise, subject
to IPL quality standards and approval.
11. Broadcast and Media Rights
11.1 IPL Rights: IPL retains all Broadcast Rights for the Tournament.
11.2 Franchise Cooperation: The Franchise shall: a) Provide broadcasters with all reasonable
access and facilities for Matches b) Ensure Players and Team officials are available for pre
and post-Match interviews c) Comply with any reasonable requests from IPL or its broadcast
partners
11.3 Non-Live Content: The Franchise may produce non-live content featuring the Team,
subject to IPL approval and guidelines.
12. Financial Provisions
12.1 Bank Guarantee: The Franchise shall provide IPL with an irrevocable bank guarantee for
[Amount] as security for its obligations under this Agreement.
12.2 Salary Cap: The Franchise shall comply with any salary cap or other financial regulations
imposed by IPL from time to time.
12.3 Financial Stability: The Franchise shall maintain sufficient financial resources to meet its
obligations under this Agreement and to operate the Team.
12.4 Insurance: The Franchise shall maintain appropriate insurance coverage, including but
not limited to public liability and professional indemnity insurance.
13. Termination
13.1 Termination by IPL: IPL may terminate this Agreement with immediate effect by written
notice if: a) The Franchise commits a material breach of this Agreement which is not
remedied within 30 days of written notice b) The Franchise fails to pay any sum due under
this Agreement within 60 days of the due date c) The Franchise becomes insolvent or enters
into liquidation d) The Franchise or any of its owners engage in conduct that brings the
Tournament or the sport of cricket into disrepute
13.2 Termination by Franchise: The Franchise may terminate this Agreement with immediate
effect by written notice if IPL commits a material breach of this Agreement which is not
remedied within 30 days of written notice.
13.3 Consequences of Termination: a) Upon termination, all rights granted to the Franchise
shall immediately revert to IPL. b) The Franchise shall immediately cease all use of IPL and
Team marks. c) Termination shall not affect any accrued rights or liabilities of either party. d)
Clauses that by their nature should survive termination shall remain in effect.
14. Dispute Resolution
14.1 Good Faith Negotiations: The parties shall attempt to resolve any dispute arising out of
or in connection with this Agreement through good faith negotiations.
14.2 Mediation: If the dispute is not resolved through negotiations within 30 days, the
parties shall attempt to settle it by mediation in accordance with the LCIA Mediation Rules.
15. Governing Law
15.1 This contract shall be governed by and construed in accordance with the laws of India.
15.2 The courts in Mumbai shall have exclusive jurisdiction over any matters arising out of
this agreement.
16. Miscellaneous
16.1 This agreement constitutes the entire understanding between the parties and
supersedes all prior agreements, whether oral or written, relating to the subject matter
hereof.
16.2 Any amendments to this agreement must be made in writing and signed by authorized
representatives of both parties.
16.3 Neither party may assign its rights or obligations under this agreement without the
prior written consent of the other party.
16.4 If any provision of this agreement is held to be invalid or unenforceable, the remaining
provisions shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above
written.
For Indian Premier League (IPL): [Signature] [Name and Title]
For [Franchise Name]: [Signature] [Name and Title]