February 8, 2010 Leave a comment
Though there were unfounded rumors, the first owner club of Bollywood Celebrity and Star Preity Zinta, Ness Wadia and others may give away the team for a $260 million payment to the sports denizens. Other First owners like GMR Group and Deccan Chronicle may also be scouting for partners or buyers as larger investments do bring a faster apocalypse. Hero Honda group is likely to continue as flagship sponsor of many World Sports events in Cricket, Olympics and Hockey. A valuation of $260 million is more than 3 times the base price two years back, still sounds conservative and less than the final tab for public or seconds ownership. The sources of the story, priceless. It’s a shame that such a joke was perpetrated on the serious sports audiences. Also, the Royal2020 must recover its negotiations with each Cricket Board as the planned series is again in the malignant eye of the English Board, saving the English from the game.
The Rajasthan Royals co-owned by Raj Kundera, Lachlan Murdoch and chaired by Manoj Badale and Emerging Media were recently valued at $300 million. The team is set to grow the game franchise and take a larger piece of the growing pie. The Royals are on way to owning four more International T20 teams, The Victoria Bushrangers now to be known as the Victoria Royals, The Nashua Cape Cobras, The TNT team that will become the TNT Royals and maybe one more in England or Pakistan. All these teams made it to the Champions League of National Champions / Victors in the first edition of 2009. The Royals will own a sable stake in each of the teams and share revenues and expenses correspondingly with the current owners in each case.
IPL as definitely been the story of growing franchise and easy access to investment in the world’s greatest sport ( after the Saints kept their part of the bargain in NFL of course).
The no. of foreign players in each IPL franchise was recently raised from eight to ten, while four can play in each game. RR’s wider ownership of teams will de-risk team revenues from such patriotic and seasonal vagaries and bring more certain cash flows investment bankers love to see in any product for sale.
Punjab Kings XI meanwhile have recruited a local industry luminary to support its marketing and are looking to offload a similar ownership stake in India or abroad for their $300 million team, that fared well in the first edition and is looking to come back in the third edition with a new captain. Shane Warne captains the Jaipur based Rajasthan Royals