Indian and Pakistani Government officials have joined the spat. Pakistanis saying it was politacally motivated, Indians saying politics had nothing to do with it.
Effigies of IPL founder and king-pin Lalit Modi were burnt in the streets of Lahore in Pakistan.
The Guardian has a good article about it here.
I think it is probably a balance of the two arguements. IPL teams are still more than happy to have Australian, New Zealand and West Indian players despite them missing a large chunk of the season due to international commitments.
Taking a risk on Pakistani players isnt too different. Since the players are auctioned, the financial risk could have been quite small ( at least compared to the silly amounts of money being thrown around the tournament as it stands).
The IPL were more than happy to use star Pakistani all-rounder Shahid Afridi for their billboard advertising around India…
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