Cash-strapped Sri Lanka board loses television case

The Sri Lanka cricket board (BCCSL) is facing a potentially crippling financial damages claim after a Singapore tribunal ruled that it had wrongfully terminated a television broadcasting contract with WSG Nimbus.

The BCCSL cancelled their three-year US$27.1 million broadcasting agreement with WSG Nimbus in October 2001 after complaining that WSG had "repeatedly missed payment deadlines". The BCCSL then signed a fresh three-year deal with Dubai-based Taj Television.

The BCCSL first obtained an injunction against WSG Nimbus, but the legal wrangle moved to Singapore when WSG Nimbus obtained an injunction overruling Colombo. The BCCSL denied Singapore's jurisdiction over the case but later backed down.

Last week, the tribunal ruled "the termination of the MRA was wrongful and WSG are entitled to recover from the BCCSL damages to be assessed". The tribunal also ordered the BCCSL to pay US$768,667 plus legal costs of approximately US$250,000.

The amount of damages to be paid will be finalised at a hearing in September after the submission of a claim from WSG Nimbus. Even before this claim the BCCSL was facing a cash crisis. Last week the board announced a US$900,000 loss in 2002.

Anura Tennekoon, the BCCSL's chief executive, confirmed the tribunal's decision: "Yes, that was the decision. It is a concern for us. We will now have to wait and see what happens at the next hearing in September."

The BCCSL is holding its first elections for three years on Friday and one of the first tasks of the new president - probably Thilanga Sumathipala who negotiated the deal with WSG Nimbus in 2000 - will be to try to reach a fair settlement that does not push the BCCSL into heavy debt.