Preity Zinta Moves Court To Halt Share Sale In Punjab Kings IPL Team

Preity Zinta has approached the High Court in Chandigarh to prevent a co-owner from selling his shares in Punjab Kings. She holds a 23 percent stake in the IPL franchise through KPH Dream Cricket Private Limited and aims to stop Mohit Burman from selling his shares.

Burman, who owns 48 percent of the franchise, reportedly plans to sell 11.5 percent of his stake to Tomales Bay Capital L.P., a US-based firm. However, Burman has denied these reports, stating, "I don't have any plans to sell my shares," according to Cricbuzz.

The ownership structure of Punjab Kings includes Preity Zinta and Ness Wadia with 23 percent each, while Karan Paul holds six percent. The internal agreement among owners requires any co-owner wishing to sell their share to offer it first to the other co-owners before considering external parties.

Zinta's legal action is based on allegations that Burman is attempting to sell his shares despite her timely interest in buying them. She has cited Article 19 of the association's bylaws, which gives existing directors the right of first refusal (ROFR).

The value of an IPL franchise like Punjab Kings ranges between Rs 5,300 crore and Rs 5,800 crore. Therefore, an 11.5 percent share would be worth approximately Rs 540-600 crore. Any sale would require approval from the BCCI, which would receive five percent of the transaction value.

Zinta claims that after initially offering his stake to fellow directors, Burman backed out but continued discussions with Tomales Bay Capital L.P. This prompted her to seek judicial intervention.

According to Cricbuzz, Zinta's court filing highlights her concerns about Burman's actions violating their internal agreements. The bylaws stipulate that offers for selling stakes must be time-bound and not open-ended.

The court case underscores the complexities involved in managing ownership stakes within high-value sports franchises like those in the IPL. It also highlights the importance of adhering to internal agreements and bylaws among co-owners.

This ongoing legal battle could have significant implications for the future ownership structure of Punjab Kings and potentially affect its operations if not resolved amicably.