But the club have revealed they are still owed £25,000 following the release of Brad Hodge to the Kolkata Knightriders last season.
The IPL franchise claim they have released the money to an agent to forward on to the Old Trafford outfit, however Lancashire are still waiting to be paid and have put the matter in the hands of their lawyers.
Hodge was just beginning the second year of a two-year contract as an overseas player with Lancashire last April when the Knightriders offered him a deal. And, although it left their pre-season plans in tatters, Lancs allowed the Australian batsman to go having arranged the £25,000 release fee.
"We didn't want to stand in Brad's way and we agreed the deal at very short notice and in good faith," said Lancashire chief executive Jim Cumbes.
"We have been trying to get the money, but haven't seen it so we have put it in the hands of our lawyers."
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Flintoff has been given a reserve price of $950,000 (£661,000) for the IPL auction, which will be held on February 6, but that price could easily rocket if a bidding war starts.
Freddie, who can only play for three weeks of the tournament which runs from April 10 to May 29, will receive a pro-rota amount but that would still see him pocket around £350,000 - 10 per cent of which the player will give to Lancs.
Kevin Pietersen has been given the highest reserve price of all the England players of £1.02m.
As expected, Jimmy Anderson is on the list, although Lancashire were surprised to see Sajid Mahmood's name included.
Last night the club were waiting to speak to the bowler, who is preparing with the England Lions squad for their New Zealand tour.
"We had no knowledge of an IPL contract for Saj," admitted Cumbes. "But it may be that his name was put forward without him knowing. We don't want to stop people maximising their earnings but at the moment we are expecting him to start the season with us."
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