“The termination follows the franchisee’s inability to fulfil its financial obligations under the terms of the franchise agreement,” IPG said in a statement. “As a result, all rights relating to the Jaffna Kings franchise have reverted to IPG, which, together with Sri Lanka Cricket, has assumed full operational control of the team.”

To stabilise the franchise, IPG and SLC have taken over all player, coaching, and support-staff contracts. The structural intervention has helped ease the team’s financial backlog; Sports Commune had failed to disperse sponsorship funds, leading to players taking the field with black tape covering sponsor logos on their jerseys during their match on July 22.

Since then emergency funds have been deployed to clear approximately 90% of outstanding player and staff salaries, while IPG has committed to settling the remaining balances in accordance with contractual timelines.

“IPG confirms that the 6th edition of the LPL will proceed as scheduled and Jaffna Kings will continue to participate in the tournament under the same nomenclature, with no changes to the squad, tournament format, or match schedule,” IPG said.

The breakdown occurred because the franchise’s commercial framework required sponsors to pay the owners directly, who were then responsible for distributing salaries. This pipeline broke down in the days following Kalra’s arrest by Sri Lankan authorities on charges of corruption. He remains in judicial custody until July 31. Cricinfo understands the other co-owner, entrepreneur Mayank Goel, has not been contactable after reportedly arriving in Sri Lanka in recent days.

“While this was a difficult decision, our priority has always been to protect the integrity of the Lanka Premier League and ensure complete stability for our players, coaches, partners, and fans,” IPG CEO Anil Mohan stated in the release. “Together with Sri Lanka Cricket, we have acted swiftly to ensure the Jaffna Kings continue to participate in the tournament without disruption. We want to assure everyone that all operational matters, including player contracts, staff commitments, and team logistics, are being managed seamlessly. The sixth edition of the LPL will proceed as planned, and we remain fully committed to delivering another successful and world-class tournament.”