Tensions have surfaced within the ownership group of the Punjab Kings, one of the original eight franchises in the Indian Premier League (IPL). The discord has escalated to the point where co-owner and Bollywood actress Preity Zinta has reportedly sought legal intervention against another promoter, Mohit Burman. The conflict centers on Burman’s alleged plans to sell a portion of his stake in the team, a move that Zinta claims violates their internal agreements.
According to sources in Chandigarh, Zinta, who holds a 23% share in the franchise through KPH Dream Cricket Private Limited, has filed a petition in the State High Court seeking a restraining order against Burman. Burman, who is the largest stakeholder with a 48% share, has been accused by Zinta of attempting to sell 11.5% of his stake to a U.S.-based entity named Tomales Bay Capital L.P. However, Burman has denied any intention of selling his shares, telling Cricbuzz, “I don’t have any plans to sell my shares.”
The ownership group of Punjab Kings also includes Ness Wadia, who holds a 23% stake, and Karan Paul, who owns the remaining 6%. The issue at hand revolves around the internal agreement among the owners that mandates any stake intended for sale must first be offered to the existing shareholders. Only if the current promoters decline to purchase it within a specified timeframe can the stake be sold to an outside party. Zinta’s legal action claims that Burman is attempting to bypass this process, despite her timely exercise of her pre-emptive rights.
Zinta’s petition reportedly outlines the sequence of events, stating that the issue was first brought to the attention of the board members in April. She references Article 19 of the association’s bylaws, which grants existing directors the right of first refusal (ROFR). According to her petition, after initially offering to sell the stake to fellow directors, Burman allegedly withdrew the offer but continues to pursue a sale to the U.S. company.
If Burman proceeds with the sale, the Board of Control for Cricket in India (BCCI) will inevitably become involved, as the transaction requires regulatory approval. The BCCI is entitled to a 5% cut of the transaction value. With the inclusion of two new teams in the IPL in 2022, the valuation of franchises has skyrocketed. A moderately successful team like Punjab Kings could be valued at up to $650-700 million (INR 5,300-5,800 crore). The 11.5% stake in question could therefore be worth INR 540-600 crore, but sources suggest that Burman has priced it at $85 million (over INR 700 crore).
The outcome of this dispute remains uncertain, with the case scheduled for a hearing on August 20. As of now, Burman has denied any plans to sell his shares, while Zinta, Wadia, and Paul have not commented publicly on the matter. If the court sides with Zinta, it could prevent Burman from proceeding with the sale, but if it doesn’t, the sale could go forward, pending BCCI approval.
The Punjab Kings, despite being an original IPL team, have had a lackluster performance over the league’s 17 seasons, with only one final and one semifinal appearance. The franchise has been in the news recently for other reasons as well, including a search for a new Indian head coach to replace Trevor Bayliss ahead of the upcoming mega auction. This internal conflict, however, adds another layer of complexity to the team’s off-field issues.
