2 new IPL teams fetch BCCI Rs 13,000 crore

A controversial US capital venture fund and an Indian tycoon on October 25, 2021, bid more than $1.6 billion dollars between them to set up two new teams in the Indian Premier League, the world's richest cricket tournament. Credit: AFP File Photo

Surpassing all expectations, the Board of Control for Cricket in India netted a whopping Rs 12,715 crore after auctioning two new IPL franchises which will be based out of Lucknow and Ahmedabad.

Business tycoon Sanjiv Goenka’s RPSG group, which was the highest bidder for both the franchises, opted for Lucknow while equity ventures Irelia Company Pte Ltd (CVC Capital Partners) got Ahmedabad by virtue of being the second-highest bidder.

While RPSG quoted Rs 7,090 crore for both the franchises, CVC quoted Rs 5,625 for Ahmedabad and Rs 5,166 crore for Lucknow.

Highly tipped to win one of the teams, Adani Group of Companies lost out after quoting Rs 5,100 crore for each franchise. Goenka had also quoted Rs 4,790 crore for Indore.

This is a fresh innings for Goenka who earlier owned the Pune franchise which was scrapped.

The other bidders were Lancer Capital, who own Manchester United football club; Aurobindo Pharma and Torrent Pharma.

From the 2022 season, IPL will comprise 10 teams and will have 74 matches.

Also read: Ahmedabad, Lucknow two new IPL teams; CVC Capital & RPSG Group highest bidders

Each team will play seven home and seven away matches, according to the Board.

“BCCI is pleased to announce the following successful bidders (subject to definitive documentation and other formalities being completed): 1. RPSG Ventures Ltd. – Lucknow (for INR 7,090 crores). 2. Irelia Company Pte Ltd (CVC Capital Partners) – Ahmedabad (for INR 5,625 crores),” the BCCI stated in a press release after IPL Governing Council chairman Brijesh Patel disclosed the winners in Dubai following the opening of the bids.

While revenue was beyond anybody’s imagination with generous estimates pegging it at Rs 10,000 crore, BCCI is likely to triple its revenue from the sale of broadcast rights which will be up for auction for a five-year cycle after the next edition.

Star TV had bought broadcast and digital rights for an eye-popping Rs16,348 crore for a period of five years from 2018-2022. With two more teams in the fray, there will be more matches and the BCCI hopes to earn around Rs 30,000 crore for the next cycle.

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