Sources in Chandigarh suggest that Preity, who holds a 23 percent stake in the franchise through KPH Dream Cricket Private Limited, has approached the State High Court to prevent co-owner Mohit Burman from selling a portion of his shares to an external party.
Mohit Burman, who has the largest stake in the franchise at 48 percent, is at the center of this legal dispute. The other owners include Ness Wadia, who also holds a 23 percent share, and Karan Paul, who owns the remaining six percent.
The court appeal revolves around Burman’s alleged plans to sell part of his stake, a claim he has denied. In a statement to a private news outlet on Friday, Burman, who is associated with the Dabur group, stated, “I don’t have any plans to sell my shares.” However, Preity’s petition asserts that Burman intends to sell 11.5 percent of his stake to a U.S.-based firm, Tomales Bay Capital L.P.
The franchise’s internal agreements stipulate that any shares intended for sale must first be offered to the existing group of promoters. If the current promoters decline to purchase the shares within a specified time frame, only then can the stake be sold to an outside party. Preity’s court filing alleges that despite exercising her pre-emptive rights in a timely manner, Burman is still attempting to sell the shares to a third party. Her petition highlights Article 19 of the association’s bylaws, which governs the right of first refusal (ROFR) for existing directors.
The issue reportedly came to light during a board meeting in April, where Burman initially offered to sell his stake to fellow directors but later backed out while continuing to pursue the sale to the U.S. company.
Should the sale proceed, the Board of Control for Cricket in India (BCCI) would need to approve the transaction, as they are entitled to five percent of the transaction value. The valuation of IPL franchises has significantly increased since the inclusion of two new teams in 2022. A moderately successful franchise can now command a value of $650-700 million, or INR 5,300-5,800 crore. The 11.5 percent stake in question could be worth around INR 540-600 crore, but reports suggest that Burman has priced it at $85 million, or over INR 700 crore.
With Burman denying any intention to sell his shares, the outcome of this dispute remains uncertain. Attempts by a private news outlet to contact Preity for comment went unanswered, and Ness Wadia also did not respond to messages. The case is scheduled for a hearing on August 20.
Punjab Kings, one of the original eight IPL teams, has had an underwhelming performance over the league’s 17-year history, reaching the final only once and the semifinal once. The franchise is reportedly seeking an Indian coach to replace Trevor Bayliss ahead of the upcoming major auction later this year.
