The Indian Premier League may be able to further increase its reach, with reports claiming that the Board of Control for Cricket in India (BCCI) is considering adding at least two franchises from IPL 2028 onwards.
This expansion is anticipated to take place along with the next media rights cycle of IPL, which will cover the period from 2028 to 2032, with each of the new franchises having a valuation of over $1 billion, according to the Mint report.
The two cities, Pune and Vadodara, seem to be leading the race; however, the final decision on the cities has not been made yet.
“The Board of Control for Cricket in India (BCCI), which runs the league, has begun preliminary talks with private equity teams from the 2028 media rights cycle, with Vadodara and Pune among the cities in the fray, according to two people familiar with the plans, who said the discussions are private,” the Mint report stated.
The private equity firm Permira, West Asian sovereign wealth funds, Asian state-backed investment firms, US-based family offices, and well-known Indian commercial conglomerates are also considered potential investors.
According to the article, ultra-high-net-worth people are also considering potential investments, including minority ownership in the suggested teams.
The rise of Vadodara as a possible IPL destination coincides with Gujarat's larger efforts to bolster its standing as a centre for sports. Pune, on the other hand, has a long history with professional cricket and has hosted two IPL teams in the past.
From 2011 until 2013, Pune Warriors India, a team owned by the Sahara Group, called the city home. Pune later hosted Rising Pune Supergiant for two seasons in 2016 and 2017, when Chennai Super Kings and Rajasthan Royals were suspended.
With interest in the IPL at an all-time high, the new franchises could each be valued at over $1 billion.
A consortium made up of the Aditya Birla Group, Bolt Ventures—the firm of American sports investor David Blitzer—US private equity firm Blackstone, and Indian media giant Times of India purchased IPL champions Royal Challengers Bengaluru for US$ 1.78 billion (roughly Rs 16,660 crore).
In another major deal, well-known industrialist Lakshmi N. Mittal and his son, Aditya Mittal, together with Adar Poonawalla, acquired a majority stake in Rajasthan Royals with a bid of $1.65 billion (approximately Rs 15,600 crore).
The IPL media rights cycle from 2023 to 2027 fetched an eye-popping Rs 48000 crore (roughly US$ 6.2 billion as per the exchange rate back then). The next media rights cycle from 2028 to 2033 is expected to breach that mark.
In 2008, the IPL had eight teams. In 2011, Pune Warriors India and Kochi Tuskers Kerala were added, bringing the total to ten. The Pune Warriors left the league in 2013 when the IPL was reduced to eight clubs, and the Kochi franchise was dismissed by the BCCI after just one season for failing to pay a bank guarantee.
In October 2021, the league was increased to ten teams. International equity investment firm CVC Capital won the competition for Ahmedabad with an offer of Rs 5625 crore, while Sanjiv Goenka's RP-SG Group acquired the Lucknow franchise for an astounding Rs 7090 crore.
(The Mint report)
