Sanjiv Goenka’s RP-SG Group claimed the Lucknow franchise for Rs 7,090 crore while international equity investment firm CVC Capital won the bid for Ahmedabad with a Rs 5,625 crore offer as the eagerly-awaited two new IPL teams were unveiled on Monday.
The IPL will increase from eight to 10 teams from 2022 as it seeks to capitalise on its growing international popularity with increased fees for its television and other rights.
New IPL teams: Bids for Ahmedabad, Lucknow franchises won by RPSG, CVC Capital, says BCCI
The winning bids beat 20 other top Indian conglomerates and international concerns such as the Glazer family, owners of English Premier League giants Manchester United, to secure the new teams.
Sourav Ganguly, president of the Board of Control for Cricket in India, which runs the IPL, said it was “heartening” to see the teams sold for “such a high valuation.”
“It reiterates the cricketing and financial strength of our cricket ecosystem.
He said the involvement of two foreign bidders, CVC and the Glazers, “strongly emphasises the global appeal of the IPL as a sports property. The IPL is proving to be a wonderful instrument in globalising the game of cricket.”
New IPL teams reiterate the strength of our cricket ecosystem: BCCI president Sourav Ganguly
RPGS owns one of India’s top football teams, Mohun Bagan, and used to be part of the IPL with the Rising Pune Supergiants, which took part in the tournament when two teams were banned in 2016-2017 over a corruption scandal.
Members of the two teams were charged with illegal betting and spot-fixing. The IPL has been dogged by other corruption and gambling scandals.
But it attracts huge TV audiences in India, and has spawned T20 tournaments around the globe.
Its brand value was estimated at $6.7 billion in 2019 by the Duff and Phelps financial consultancy.
Before the coronavirus pandemic, it was estimated to generate more than $11 billion for the Indian economy each year.
Here are reactions to the announcement of the two new IPL teams:
How the #IPL bids went! pic.twitter.com/nLjQb6djsB
— Harsh Goenka (@hvgoenka) October 25, 2021
IPL 2021 paused, resumed months later, and concluded just days before the start of a world tournament. Two new franchises officially received the IPL cachet today.
— Annesha Ghosh (@ghosh_annesha) October 25, 2021
The 2021 Women's T20 Challenge, meanwhile, hasn't been announced yet. We're nearing November, so you do the math.
I remember the shock at the first IPL team prices when they were announced in 2008. And the shock over how much Sony paid for the World Cup in 2003 and then the IPL in 2008. These bids for the new teams make sense if your horizon is 20 years.
— Joy Bhattacharjya (@joybhattacharj) October 25, 2021
congratulations to the new winners of two new #ipl teams. amazing new price of 7000 crores for luckhnow by #goenka group and 5600 crores for ahmedabad by #cvc capital 🥁🙏😁
— Lalit Kumar Modi (@LalitKModi) October 25, 2021
Really delighted to see the entry of my city in #IPLAuction2022. Lucknow main agli baar aayen toh #IPL ka maza len!
— R P Singh रुद्र प्रताप सिंह (@rpsingh) October 25, 2021
Congratulations Mr. @sanjivgoenka
Join us in welcoming the two new members of the IPL family! 🤜🤛
— Royal Challengers Bangalore (@RCBTweets) October 25, 2021
ಸ್ವಾಗತ, Ahmedabad and Lucknow!#PlayBold #IPL2022 #NewIPL #WelcomeToTheIPL #IPLAuction #IPLBid #NewTeams pic.twitter.com/yOlq1uKN1u
I must admit I am blown away by the size of the bids. The cricket economy just gets more buoyant and I don't see how it can stop at 74 games a year. This is a huge vote of confidence in the Indian consumer's willingness to watch the #IPL.
— Harsha Bhogle (@bhogleharsha) October 25, 2021
The cost of the teams clearly underlines that expansion of the IPL from eight teams to ten is the start rather than the end of the growth of the league. This is an extract from Cricket 2.0 where Sanjog Gupta, CEO of Star Sports explains what the future of the IPL might look like. pic.twitter.com/xPjs5Fcbxw
— Freddie Wilde (@fwildecricket) October 25, 2021
With the 2 new franchises going for huge numbers it’s now very clear the IPL is the most powerful aspect of game now .. It’s inevitable that we will see more games & longer tournaments ., #IPL
— Michael Vaughan (@MichaelVaughan) October 25, 2021
Cost of IPL teams (in million USD)
— Deepu Narayanan (@deeputalks) October 25, 2021
Lucknow 950
Ahmedabad 710
PWI 370
KTK 333
MI 111.9
RCB 111.6
Deccan 107
CSK 91
DC 84
SRH 79.5 (five year deal)
PBKS 76
KKR 75.1
RR 67#IPLNewTeam #Ahmedabad #Lucknow
Many congratulations to all the office bearers of @BCCI for biggest milestone in the journey of @IPL . It’s big achievement that two teams have been added in ipl with such a huge valuation. Thanks to @SGanguly99 @JayShah @ThakurArunS Brijesh patel and officials of BCCI
— Rajeev Shukla (@ShuklaRajiv) October 25, 2021
Congratulations sir! Proud moment for UP to now have an own IPL team. Wishing everyone all the very best. https://t.co/crBuNLmDCO
— Suresh Raina🇮🇳 (@ImRaina) October 25, 2021
Delighted to learn that my city, Amdavad gets an IPL Team. Can’t wait for thrilling matches at our World Class stadium. The valuation of the team represents the immense potential of IPL! @BCCI
— parthiv patel (@parthiv9) October 25, 2021
Congratulations and best wishes to everyone involved! @JayShah @SGanguly99
So, Ahmedabad and Lucknow it is. The valuation of the new teams has taken the #IPL to a whole new level. Now, the wait to understand the retention rules. I hope that allowing 5 overseas players in the XI is considered as an option for the first 3 years at least.
— Aakash Chopra (@cricketaakash) October 25, 2021
Sourav Ganguly in BCCI statement: "True to IPL’s motto of ‘Where Talent Meets Opportunity’, the inclusion of two new teams will bring more domestic cricketers from our country to the global stage" pic.twitter.com/K5BkMqIG5w
— Vinayakk (@vinayakkm) October 25, 2021
More matches, more sponsorship, bigger broadcast rights, more players required, more money for star players (economy permitting) cricket’s eco-system will evolve with addition of two new teams in #IPL. In fact IPL could become the ecosystem into which everything else fits in!
— Cricketwallah (@cricketwallah) October 25, 2021
Two new IPL teams going for $950 ml and $710m is a reminder of the IPL's clout and why owners love it: with no relegation and a bumper media deal, you can make a profit without even winning - just like US sports league, which the IPL was modelled on
— Tim Wigmore (@timwig) October 25, 2021
Thank you Sanjiv Goenka for not letting Manchester United in the IPL, the farther they stay away from cricket the better
— Sritama Panda (@cricketpun_duh) October 25, 2021
IPL franchise is like an Airport, slowly every Tier 2 city will get one :)
— Gabbbar (@GabbbarSingh) October 25, 2021
PS: Pune lost both 😭
Inputs from AFP
