Punjab Kings co-owner Ness Wadia feels Rs 2000 crore base price for two new IPL teams is a conservative number that should go up by 50 to 100 percent during bidding. The BCCI had announced that the announcement of the two new Indian Premier League (IPL) franchises will be made on October 25.
This will make the next IPL 2022 a ten-team affair for the first time since the 2011 season. The most likely home venues for the two new teams are Ahmedabad and Lucknow in the top running.
Big money establishments such as the RPS group, the Adani group, Aurobindo Pharma, Torrent Pharmaceuticals, Broadcast & sports consulting agencies ITW, Group M, Consortiums of Singapore based Private Equity Firms and others have shown interest in the two new teams.
As per PBKS co-owner Ness Wadia, the addition of the teams will lead to an appreciation of the IPL’s value as well as the existing franchises.
“The minimum base price is Rs 2000 crore at the moment, it will go for quite a lot more. Based on my little experience and knowledge of the IPL, 2000 is very conservative and I wouldn’t be surprised if it went up a minimum of 50 to 100 percent more than that. I would expect at least Rs 3000 crore plus. Everyone wants to be a part of IPL but only a handful can be a part of it,” said Wadia.
“There are no concerns at all. It is good that two new teams are being introduced. I also feel IPL is a premium product and with the limited number of teams, the value of all the franchises will go up after the addition of new franchises. Bringing in 10 teams will bring more width and depth to the IPL.
There have been eight teams for the majority of the IPL history and after this, I don’t see more teams coming into the league for at least five to seven years. It will be very good for the broadcasters also. I see it as a big positive,” he said.
Furthermore, Wadia says that the new teams will also help IPL become a stronger product.
He said, “IPL is the jewel in the crown of the BCCI and therefore the jewel will get the right value. Since there can only be two new teams, then automatically the value of existing franchises also goes up. It is a closed league and the beauty of today is that you have a fixed asset which not only gives you appreciation, on a yearly basis but also consistent yearly revenue.
You have got money coming in, approximately Rs 250 to 300 crore a year, and that is the inflow coming into your pocket apart from the appreciation of the asset. It is like a building in a prime location and all around you people are developing, so the value of your asset goes up too.”
Wadia also said that he hopes BCCI makes it fair for all the teams in the upcoming IPL mega auction for IPL 2022 when referring to the retention of players and the right to match cards.
He said, “I don’t know what (BCCI is planning for the auction). Whatever is done should be fair and equitable to the new teams coming in as well as the existing teams.”