Cricket: U.S. Fund and Indian Tycoon Offered Over $ 1.6 Billion for New IPL Teams, Football News & Top Stories

DUBAI (AFP, REUTERS) – The controversial U.S. private equity fund and Indian Tycoon on Monday (October 25) offered more than $ 1.6 billion ($ 2.16 billion) to form two new teams in the Indian Premier League, the world’s richest cricket tournament.

Sanjiv Goenka, whose RPSG group includes electricity, music and planting companies, bid more than $ 930 million at an auction in Dubai to set up a team in Lucknow, India, the IPL said.

CVC Capital’s partners pledged more than $ 690 million to form a team in Ahmedabad, the world’s largest cricket stadium.

The number of IPLs will increase from eight to ten from 2022 as it seeks to capitalize on its growing international popularity by raising fees for its television and other rights. There are 74 matches in the competition, each with seven home games and seven away games.

The winning bids won over 20 other top Indian companies and international companies, including the Glazer family, which owns English Premier League football giant Manchester United, to secure the new teams.

The Luxembourg-based CVC has more than $ 100 billion in cash, which it has used in recent years to transform international sports. It has already spent several billion dollars to make significant stakes in the international rugby federation and top football properties, such as the Spanish La Liga championship.

It has also acquired the International Volleyball Federation, which previously owned Formula One, and has been in talks in recent months to combine men’s and women’s international tennis tours and participate in the San Antonio Spurs National Basketball Association.

“It’s good to be back in the IPL and I’m happy,” RPSG owner Sanjiv Goenka told cricket site ESPNcricinfo. “It’s the first step. Now we have to build a good team and run.”

Sourav Ganguly, chairman of the Indian cricket oversight board leading the IPL, said it was “gratifying” to see the teams selling “at such a high price”.

“It replicates the cricket and financial strength of our cricket ecosystem,” he said.

He argued that the involvement of two foreign bidders, CVC and Glazers, “strongly emphasizes the global appeal of the IPL as a sports property.”

“The IPL is proving to be a great tool in the globalization of the game of cricket,” he added.

RPGS owns one of India’s best football teams, Mohun Bagan, and was previously part of the IPL with Rising Pune Supergiants, who participated in the tournament when two teams were banned in 2016-2017 due to a corruption scandal.

Members of the two teams were charged with illegal betting and spot-fixing.

The IPL has been under other corruption and gambling scandals. But it is attracting a huge TV audience in India and has spawned T20 tournaments around the world.

Financial consultant Duff and Phelps estimated the value of its brand at $ 6.7 billion in 2019. Prior to the coronavirus pandemic, it was estimated to generate more than $ 11 billion annually for the Indian economy.

This year, the eight-team competition was suspended nearly mid-May after two franchisees reported Covid-19 cases. The second half was later transferred to the United Arab Emirates, and the Chennai Super Kings, led by former Indian captain Mahendra Singh Dhoni, won their fourth IPL title by defeating the Kolkata Knight Riders in the final in Dubai.