Mumbai: Indian cricket’s governing body on Thursday reinstated sports management firm IMG as the promoting agency for the Indian Premier League (IPL) Twenty20 tournament, burying a dispute over fees.

Burying dispute: (L to R) BCCI’s N. Srinivasan, Shashank Manohar and Rajeev Shukla address a press meet after the annual general meeting. Ashesh Shah / Mint

While IMG will be paid Rs33 crore for its work on the second season of IPL in South Africa early this year, the new agreement states that IMG will have to settle for a fixed sum of Rs27 crore as annual fee for the next eight years of the contract, said Shashank Manohar, president, BCCI.

IMG’s South Asia managing director Ravi Krishnan was unavailable for comment.

The dispute over fees had come to head last month when IMG presented BCCI with a bill of Rs33 crore for the second season of IPL.

Some BCCI officials objected to the fee and asked for it to be lowered. When IMG refused, the board decided to terminate the contract at a meeting of its working committee on 13 August, with BCCI secretary N. Srinivasan conveying the message in writing to the agency.

BCCI decided to reopen talks after the move met with a hostile barrage from seven of IPL’s eight franchises, agriculture minister and former board president Sharad Pawar, league boss Lalit Modi and broadcast partner Multi Screen Media Pvt. Ltd.

A formal truce was finally announced at the AGM, which was attended by representatives from 30 state cricket associations. The group included Gujarat chief minister and newly elected president of the Gujarat Cricket Association Narendra Modi, UB Group chairman and owner of the Bangalore Royal Challengers Vijay Mallya, Arun Jaitley, Jyotiraditya Scindia, Lalit Modi, Jagmohan Dalmiya, Rajeev Shukla and Dilip Vengsarkar, among others.

Terror attacks and fears that shadowed cricket matches and the economic slowdown seem to have taken a toll on BCCI’s balance sheet.

According to Manohar, BCCI reported a drop in profit to the tune of Rs130 crore, which included a Rs45 crore drop in profit during the second season of IPL. The cricket body’s income dropped sharply from Rs1,000 crore in fiscal year 2008 to Rs725 crore in fiscal year 2009.

Its surplus dropped from Rs303 crore in fiscal year 2008 to around Rs54 crore in fiscal year 2009 due to the loss of media rights and sponsorship money on account of cancellation of two one-day internationals during England’s tour of India, the cancellation of the ICC Champions Trophy 2008, the Champions League 2008 and India’s tour of Pakistan, among other factors.

“There have been some minor fluctuations (in the profit and loss) due to the IPL shifting to South Africa and the economic slowdown, but it is nothing to be concerned about," said Jaitley, vice-president, BCCI.

Manohar said that BCCI continues to stand by Indian players, who had expressed concerns about signing the International Cricket Council’s anti-doping code, particularly the “whereabouts clause" which states that players have to be available for random dope testing at all times, among other stringent requirements. The matter will come up at the council’s next executive committee meeting on 6 October, he said.

Ravi Krishnan contributed to this story.