With a number of international investors putting up billion-dollar offers for the Bengaluru-based Indian Premier League (IPL) team Royal Challengers Bengaluru (RCB), its ownership may be about to change. The Jaipur-based Rajasthan Royals (RR) are riding the same high-stakes sale wave concurrently.
RCB and RR were among the eight founding franchises when the BCCI began the IPL in 2008. The Bengaluru franchise was the second most costly at the time, purchased for USD 111.6 million by Vijay Mallya's United Breweries Group.
Emerging Media paid USD 67 million to purchase the Jaipur-based Royals, making it the least costly franchise. In 2008, however, the dollar value was INR 40.
The numbers under discussion are serious matters. The combined sum the BCCI received in 2021 when it sold the Lucknow and Ahmedabad franchises for INR 12,715 crore is anticipated to be near or even higher than the anticipated bids for each team.
ESPNCricinfo reported that, according to people familiar with the process, RCB's estimated bid range is likely to be between USD 1.2 billion and USD 1.8 billion, while RR is predicted to fall between USD 1.2 billion and USD 1.4 billion.
These ranges are based on non-binding bids in the opening round, which took place in January for RR and February 2 for RCB, and both franchises offered bidders the option of a 100% sale.
At least eight investors have been shortlisted for Royal Challengers Bengaluru (RCB) and five for Rajasthan Royals (RR), according to ESPNcricinfo.
RCB’s shortlist includes Lancer Capital, owned by Manchester United co-owner Avram Glazer, the Manipal Group owned by Ranjan Pai, Serum Institute of India chief Adar Poonawalla, Times of India Group, EQT Private Capital, Capri Global, US-based businessman Sanjay Govil (owners of Washington Freedom in MLC and Welsh Fire in The Hundred), and Premji Invest.
RR’s shortlist features Lancer Capital, Capri Global, Arizona-based tech entrepreneur Kal Somani, Govil, and Times of India Group, with Somani having previously been announced as an RR investor in 2021.
In 2021, Lancer Capitals offered INR 4128.66 crore for Ahmedabad and INR 4023.99 crore for Lucknow, while Capri Global offered INR 4024 crore for both franchises. Capri now owns UP Warriorz in the WPL and Sharjah Warriors in the ILT20, whereas Lancer currently owns Desert Vipers in the UAE.
Diageo, the company that owns RCB, has stated that cricket is not a key business and is reviewing its investment through Royal Challengers Sports Private Limited (RCSPL), intending to sell by March 31.
While bidders have been informed that RCB's final round will take place in February, RR's final bids are set for the first week of March. Before deciding on a winning proposal, the second round entails technical eligibility verification, exclusive negotiations, and contract signing.
The BCCI must still approve any sale, and the board will get 5% of the proceeds in accordance with IPL franchise regulations. Citigroup is in charge of RCB, while Raine Group is in charge of RR.
(ESPNCricinfo report)
