The Indian Premier League (IPL) is all set to be a 10-team tournament, come 2022 as RPS Goenka group bagged the Lucknow-based franchise for its highest bid at ₹7,090 crore, BCCI said in a release. Meanwhile, Ahmedabad-based franchise will be owned by CVC Group after CVC Capital made the winning bid at ₹5,625 crore.
Both groups have shelled out a combined ₹12,715 crore (approx $1.7 billion) to win the bids for two new IPL teams. The BCCI was hoping for a cumulative bid in the range of ₹10,000 crore but to their surprise
Sanjiv Goenka, chairman of RPSG Group Goenka, who owned Rising Pune Supergiants for a period of two years from 2016 to 2017, when Chennai Super Kings and Rajasthan Royals were suspended owing to spot-fixing charges, said he was elated to be back in the IPL.
“Firstly, it feels good to be back in the IPL. But this is just the first step. Now, it’s really for us to build a good team, and try to put up a good performance.”
On claiming the Lucknow franchise, Sanjiv Goenka said the team’s valuation “would be a multiple of a few times” over the next 10 years.
The bidding process was hours-long, including verification and technical evaluation. Around 10 parties are reported to have submitted bids for new teams. All the financial bids have been verified and approved for further process.
The companies that cleared the final round of technical vetting to be eligible to place the bids included RP-SG, the Adani Group, HT Media Private Limited, Torrent Pharma, Aurobindo Pharma, All Cargo, CVC, Kotak group in a consortium and the Glazers of Manchester United through their equity firm.
Rhiti Sports, best known for being former India captain Mahendra Singh Dhoni’s management firm, also placed the bid but was dismissed at the technical stage because official believed that it was fronting for an industrialist, whose relatives already own an IPL franchise.
Similarly, little known All Cargo company attracted a lot of interest as it was understood that it had the blessings of a powerful BCCI administrator and well-connected politician of an opposition party.
One of the major companies that lost out was Gautam Adani’s Adani Group which bid around ₹5000 crore while bids of Glazers from Manchester United and Torrent Group also fell short of the mark.
One of the major companies that lost out was Gautam Adani’s Adani Group which bid around ₹5,000 crore while bids of Glazers from Manchester United and Torrent Group also fell short of the mark.
“We do believe that the valuations of this will go up in the future. And from what we invest, to what it could be over a period of 10 years would be a multiple of a few times,” chairman of RPSG Group Goenka, who is also the principal owner of ATK Mohun Bagan in ISL, said.
Initially, 22 companies have picked up tender document worth ₹10 lakh but with base price for new teams pegged at ₹2,000 crore, there were only ten serious bidders in fray. The governing council of the IPL had issued the ‘Invitation to Tender’ (“ITT”) document available on payment of the non-refundable tender fees on August 31, 2021.
The new franchises will participate in IPL from 2022 season onwards subject to the bidders completing the post-bid formalities. The IPL 2022 season will comprise ten teams and will have 74 matches, wherein each team will play 7 home and 7 away matches.
The governing council of the IPL had issued an invitation to tender (“ITT”) to acquire the right to own and operate two new franchises. Pursuant to the tender process, various interested parties submitted their bids for the new franchises. The bids were submitted by the authorised representatives of the interested parties at Dubai today.
“The BCCI is happy to welcome two new teams from the next season of the Indian Premier League. I would like to congratulate RPSG Ventures Ltd and Irelia Company Pte Ltd for being the successful bidders. The IPL will now go to two new cities in India viz in Lucknow and Ahmedabad. It is heartening to see the inclusion of two new teams at such a high valuation, and it reiterates the cricketing and financial strength of our cricket ecosystem,” BCCI President Saurav Ganguly said in a statement.
The IPL’s first season was played in 2008, and ever since, the league has grown in stature and it is one of the most viewed competitions in the world.
Chennai Super Kings, Mumbai Indians, Royal Challengers Bangalore, Kolkata Knight Riders, Delhi Capitals, SunRisers Hyderabad, Punjab Kings, and Rajasthan Royals have been with the league since its inception. The Hyderabad franchise was earlier named Deccan Chargers but it came to be known as SunRisers Hyderabad after a change in ownership.
IPL New Teams Auction Highlights:
CVC Capital takes Ahmedabad franchise
CVC Capital Partners has got the rights for Ahmedabad franchise after making a winning bid.
Sanjiv Goenka-owned RPSG group bags Lucknow franchise
Sanjiv Goenka-owned RPSG group claims Lucknow franchise with over ₹7,000 crore bid, according to PTI.
Manchester United owners in Dubai
The owners of Manchester United — the Glazer family also reached UAE to try and ensure they get to own one team in the cash-rich league, according to news agency ANI.
BCCI expected to garner ₹5,000-7,000 cr
BCCI is expected to earn ₹5,000-7,000 crore from the sale of the two new IPL teams.
The big announcement is expected shortly
Announcement of new IPL teams expected soon
The announcement for two new IPL teams is expected soon. Around ten parties are reported to have submitted the bids.
All parties have submitted bids for two new IPL teams
The bid submission process has been done and the verification process is underway in Dubai for two new IPL teams.
Which companies or individual can bid for IPL teams?
In case of an individual or company, that particular entity’s annual turnover should be minimum ₹3,000 crore and in case of consortium, each of the three entities should have an annual turnover of ₹2,500 crore.
The BCCI is also allowing a consortium of up to three companies or individuals to bid for a franchise.