New Delhi:
It's the 70-crore equity gifted to her that is at the heart of the current Indian Premier League (IPL) scandal, one that's pitted Minister of State for Shashi Tharoor against IPL Commissioner Lalit Modi. That 70-crore stake has been described by the Rendezvous-led consortium that owns the Kochi team as sweat equity for Sunanda Puskhar, who the minister calls "a close friend."
Investigations reveal that it's a pretty sweet deal. Pushkar hasn't invested a rupee, yet her 70 crore stake will keep rising, as IPL does better and the Kochi franchise builds its business. Other IPL Kochi financiers will have to keep infusing funds; other shareholders' stakes will diminish as fresh shares are issued. But Pushkar and Rendezvous's share will remain unchanged. Also, Sunanda can sell her stake at any point. (
Read: Sunanda Pushkar may move court for damages)
NDTV's Shweta Rajpal Kohli talks to Satyajit Gaekwad, the Kochi IPL consortium member, about what Pushkar's entitled to.
NDTV: Can you give us details of Sunanda's sweat equity?
Gaekwad: It's a five per cent .. What it translates to depends upon the business of profit..It is five per cent equity over a period of 10 years for the professional service that she will render.
NDTV: Does it have a lock-in? Or can she sell her shares when she wants?
Gaekwad: She is free to sell her stake provided we refuse to pay her the professional fee. If we pay her upfront the professional fee, she cannot sell her stake without the majority opinion or agreement of the stakeholders
NDTV: Does she have a right to sell without checking with you?
Gaekwad: No, she does not....She has five percent sweat equity to serve IPL team as professional charges for ten long years..we are businessmen, we are cricket lovers, we are entertainers, we will not goof up like this..we have calculated what will be her professional charges for x amount for brand building. We decided instead of investing more liquidity into professional fee, we are going to earn and then distribute the profits. Why not have professionals whom we require now and in future to be exchanged with sweat equity which they can either liquidate...or exchange the sweat equity against professional charges that the Rendezvous team can generate over a period of time within this ten year bracket.