Cricket greats and commentators have been stunned by a jaw-dropping development that sets a new benchmark for cricket’s future.
A controversial US capital venture fund and an Indian tycoon bid more than $AUD2.1 billion dollars between them to set up two new teams in the Indian Premier League, the world’s richest cricket tournament.
Sanjiv Goenka, whose RPSG conglomerate includes power, music and plantation concerns, offered more than $1.24 billion at an auction in Dubai to set up a team in the Indian city of Lucknow, the IPL said.
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CVC Capital partners promised more than $920 million to set up a team in Ahmedabad at the world’s biggest cricket stadium.
The IPL will increase from eight to 10 teams from 2022 as it seeks to capitalise on its growing international popularity with increased fees for its television and other rights.
The winning bids beat 20 other top Indian conglomerates and international concerns such as the Glazer family, owners of English Premier League giants Manchester United, to secure the new teams.
Cricket greats were blown away by the size of the winning bids. Aussie legend Shane Warne tweeted: “Wow! Congratulations to both of the new franchise owners. Staggering amounts of money for each team & shows why cricket has become the 2nd most popular & biggest sport on the planet.”
Ashes-winning England captain Michael Vaughan wrote: “With the 2 new franchises going for huge numbers it’s now very clear the IPL is the most powerful aspect of game now. It’s inevitable that we will see more games & longer tournaments.”
Ex-Indian opener turned pundit Aakash Chopra said on social media “the valuation of the new teams has taken the #IPL to a whole new level” while respected Indian broadcaster Harsha Bhogle added: “I must admit I am blown away by the size of the bids. The cricket economy just gets more buoyant and I don’t see how it can stop at 74 games a year. This is a huge vote of confidence in the Indian consumer’s willingness to watch the IPL.”
The Luxembourg based CVC has a cash chest of more than $130 billion which it has used in recent years to change international sport.
CVC has already spent several billion dollars to take major stakes in international rugby union and top football properties such as Spain’s La Liga championship.
It has also bought into the International Volleyball Federation, previously owned Formula One and has been in talks in recent months to merge the men’s and women’s international tennis tours and to take a stake in the San Antonio Spurs NBA franchise.
Sourav Ganguly, president of the Board of Control for Cricket in India, which runs the IPL, said it was “heartening” to see the teams sold for “such a high valuation”.
“It reiterates the cricketing and financial strength of our cricket ecosystem,” Ganguly said.
He added the involvement of two foreign bidders, CVC and the Glazers, “strongly emphasises the global appeal of the IPL as a sports property. The IPL is proving to be a wonderful instrument in globalising the game of cricket”.
RPGS owns one of India’s top football teams, Mohun Bagan, and used to be part of the IPL with the Rising Pune Supergiants, which took part in the tournament when two teams were banned in 2016-2017 over a corruption scandal.
Members of the two teams were charged with illegal betting and spot-fixing. The IPL has been dogged by other corruption and gambling scandals.
But it attracts huge TV audiences in India, and has spawned T20 tournaments around the globe.
Its brand value was estimated at nearly $9 billion in 2019 by the Duff and Phelps financial consultancy.
Before the coronavirus pandemic, it was estimated to generate more than $14.6 billion for the Indian economy each year.
With AFP
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