ST JOHN'S, Antigua (CMC):

The West Indies Cricket Board (WICB) has moved swiftly to squash an Indian newspaper report that it was seeking a US$3 million bailout from the sport's world governing body.

The Hindustan Times newspaper reported this week that the WICB had requested the loan from the International Cricket Council (ICC) to keep them afloat.

The newspaper said the WICB is in such dire straits that it has approached the world governing body for the loan to keep creditors at bay and run the ICC Future Tours Programme as scheduled.

Advances

But the WICB has "categorically denied" that it has applied for a loan from the ICC and has explained it is not unusual for full members of the world body to ask for what amounts to advances on future ICC income.

"With the hosting of ICC tournaments, each member country would receive payments as their share of the profits," a WICB news release said.

"It was expected that with the hosting of the ICC Champions Trophy in Pakistan in September, the WICB - like all member countries - would have received its share by October next year.

"It also means that all countries would have budgeted the monies that they would have received as part of their income and expenditure."

Favourable request

The Hindustan Times report stated that the ICC's chief executive, Haroon Lorgat, and chief financial officer, Kaushik Das, have viewed the request favourably.

Under the terms, the amount loaned by the ICC will be adjusted against money due to come to the WICB as its share of distribution to members from future ICC tournaments.

The newspaper noted that the two ICC bigwigs have recommended the advance to the ICC Development International board and it should be forwarded, but "repayable in one year by September next year at a minimum interest rate".

The WICB is scheduled to receive US$2.8 million from the 2009 Champions Trophy in Pakistan and US$2.7 million from the World Twenty20 Championship to be played in England next year.

"With the postponement of the Champions Trophy this year, the ICC will now be expected to make the payments in October next year," the WICB news release added.

"[But] it was agreed by the ICC that all member countries that needed the monies should request it with supporting documents showing their programmes and how cash flow would be affected. The WICB did as requested.

"The WICB is not the only member country of the ICC indicating that its cash flow would be affected by not receiving the expected monies as anticipated.

"Thus, any report that the WICB has made a loan application to the ICC because of financial difficulties is grossly inaccurate."

The newspaper also quoted a WICB source who revealed that the regional governing body had to forego their share of prize money from the Stanford Super Series because of a prior agreement to pay off legal costs accrued in expensive litigation involving team sponsors Digicel.

Recently, Donald Peters, chief executive of the WICB, revealed that the regional body had no title sponsors for the regional one-day competition which cost US$600,000 to stage and this put a further strain on the WICB's coffers.