Two new teams set to be added for IPL 2022, BCCI to earn close to Rs 5800 Crores from deal | 2 new teams set to enter IPL 2022 next year
Indian Premier League (IPL) is known for the high-quality brand of cricket it brings to the table and the money it brings along with it. This is one of the most profitable leagues globally and is comparable with many of the global leagues of other sports like football, Basketball, etc, and there is so much interest from cricket bettors. The betting sites in India provide a variety of markets for the annual event when it comes to placing wagers.
The IPL run by BCCI has also set a benchmark for the rest of the cricket boards to follow and roll out their leagues over the years. This will get only bigger and better as the IPL is set to add two new teams to the already existent eight.
According to a report in Cricbuzz, the two new IPL teams that will be most likely added to the fold will be valued at around Rs 1850 Crores. It is being said the final bidding cost will be ranging anywhere between USD 300-400 million (which roughly means Rs 2200 Crores to 2900 crores).
This means that the richest cricket board in the world, BCCI, could earn close to 5800 crores with the addition of two new teams.
Among the current teams in the IPL, the 5-time reigning champions Mumbai Indians are the most valued team at Rs 2800 crores to 2900 crores. It is followed by Chennai Super Kings, which has a valuation of INR 2200-2300 crores. One of the most popular sides, RCB’s franchise value at 1855 crore INR.
With that being said, it is natural that the valuation of the new teams will be more than that of the current ones. This is what N Santhosh, a managing partner of a Mumbai-based LLP D&P Advisory, has exactly conveyed. He said that if a lesser popular franchise like the Rajasthan Royals is valued at USD 250 million (1850 crores), it is happy news for the BCCI.
“We always knew that the new teams would be upwards of USD 300-400 million. Look, we are talking of RR, which is not one of the highest-ranked franchises, going by different IPL parameters. If its value is USD 250 million, it is only good news for the BCCI,” N Santosh, the managing partner of D&P Advisory, said.
“In that perspective, the BCCI would be looking between USD 300-400 million. We were anticipating that six months back. With RedBird, that estimation gets reaffirmed. An average team now should cost USD 300 million, so the new team should be around 400 million (about Rs 3000 crore). If we also factor in the Ahmedabad point, the largest stadium in the world, there could be a chance of a huge gap between the price of the two new teams – one may go for USD 400 million and another for USD 350 million,” he added.
Those involved in the finances of the sale of teams have said each franchisee will earn more than Rs 150 crores as profit each year. This includes the central revenue, media, sponsorships, and gate collection.
“He can recover around Rs 150-200 crore out of that in the first 10 years when some losses are inevitable. He will keep making the moolah after 10 years. The key to getting a good price is telling the world that more parties have an interest. If a potential bidder is made known that the biggest business houses have purchased the tender document, the price will automatically shoot up. The media plays a big role in creating the hype. How the BCCI will manage the sale and orchestrate the hype is important,” the source explained.
India’s apex cricket board, BCCI, is looking to auction for the new teams in July 2021. One of the new franchises could likely be based out of Ahmedabad. This could be to take advantage of the newly built Narendra Modi Stadium in the city, and that could serve the purpose. It has to be noted that Gujarat Lions represented the city earlier in the IPL. The other team could be from the city of Lucknow as per the sources.
It is learned that many of the corporates have already put their hands on buying the franchises. The interested business tycoons include Gautam Adani (Adani Group), Sanjeev Goenka (Goenka Group), and Manpreet Singh Chadha (Chadha Group). Apart from them, entrepreneur Ronnie Screwvala and actor Mohanlal could also be in line to bid for the new teams.
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