The Board of Control for Cricket in India (BCCI) is expecting a lot of money in the tune of Rs 7,000-10,000 crores from the sale of two new Indian Premier League (IPL) teams after the bidding process begins on Monday.
There are 22 companies that have picked up tender documents worth Rs 10 lakh but with a base price for new teams pegged at INR 2000 crore, there is expected to be only five to six serious bidders in the fray. The BCCI is also allowing a consortium of up to three companies/individuals to bid for a franchise.
However, in the case of an individual or company, that particular entity’s annual turnover should be a minimum of INR 3000 crore and in the case of a consortium, each of the three entities should have an annual turnover of INR 2500 crore.
One of India’s richest business tycoons Gautam Adani and his Adani Group are expected to bid for the Ahmedabad franchise. Adani Group, if they finally put up a bid, is the favorite to own a new franchise. Likewise, the RPSG group which is headlined by billionaire Sanjiv Goenka is also considered to be a serious bidder for a new franchise.
RPSG previously owned the Rising Pune Supergiant franchise in IPL for two years and is also the owner of ISL franchise ATK Mohun Bagan.
“Gautam Adani and Sanjiv Goenka are the biggest names in the Indian industry. They will be serious bidders. Expect a minimum bid of INR 3500 crore from the potential bidders. Don’t forget that IPL broadcast rights are projected at around $5 billion (Rs 36,000 Crore). So the economics will work accordingly as franchises get the TV revenue share equally,” a BCCI insider tracking the developments told PTI on conditions of anonymity.
There has been buzz that Lancer group, which is owned by Manchester United owner Avram Glazer, has also picked up the bid document. Other notable companies which are in the fray comprise Kotak group, pharmaceutical majors Aurobindo Pharma and Torrent group.
The two cities which are leading favorites as the home of the two new franchises in terms of stadium capacity are Narendra Modi Stadium in Motera with more than 100,000 capacity while the other is Ekana Stadium in Lucknow with 70,000 capacity.
The other cities in the fray are Indore, Guwahati, Cuttack, Dharamsala, and Pune.
More so, it has been reported that a former India opener may join one of the consortiums which are expected to be serious bidders for the new franchises.
“Yes, a former India opener is ready to shell out around Rs 300 crore and buy a minority stake if the consortium he is part of is able to successfully bid for a new team. He comes from a business family and he does want to invest in a cricket team. He is a distinguished player in his own right and also understands how the franchisee universe works,” the BCCI source said.
It is still not clear whether the BCCI will announce the successful bidders on Monday itself after doing the technical evaluation of the bids.