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25 Oct 2021
It was a fascinating day for Indian cricket after two more teams were added to the Indian Premier League and the 2022 edition will now have ten sides battling it out for the trophy. The two teams are based out of Lucknow and Ahmedabad respectively.
While Sanjeev Goenka owned RPSG Group got the rights of the Lucknow team for a sum of Rs 7,090 crores, the bid for the Ahmedabad franchise was made by CVC Capitals Partners for Rs 5,625 crores.
The valuation of the IPL teams have not been at these skyrocketing figures since the inception. Here we now take a look at the teams and the cost (USD) that they went for in the first auction.
Most teams were sold for the 2008 edition around the price of 100 crore rupees. The now four-time IPL champions Chennai Super Kings went for Rs 91 million while Delhi Capitals, Delhi Daredevils and Kings XI Punjab went for 107 million, 84 million and 76 million rupees respectively.
The Kolkata Knight Riders which had a huge hype in that period owing to the ownership of Bollywood star Shah Rukh Khan, went for 75 million rupees. Mumbai Indians, hailing from the business capital of India attracted the highest bid of 124 million rupees. The Royal Challengers Bangalore went for 111 million in that auction.
IPL had one more round of tender in the last decade and the now-defunct Pune Warriors India went for a huge sum of 301 million. That showed the rise of the stature of the Indian Premier League in the business market and despite the match-fixing allegations, IPL did not fizzle out.
If the Pune bid was any indication, this 2021 auction was always going to attract big money from business houses and the BCCI did expect a combined business of Rs 7000 crores from this round. However, they outdid themselves and received a total bid of over Rs 12000 crores a day after India lost to Pakistan in the T20 World Cup.
The bid for the Ahmedabad franchise went to 692 million while the Lucknow team went for 932 million.
What will be the impact on the value of other franchises?
The higher amount of the new franchises means that there will be rise in the stocks for the older franchises as well.
If the owners consider selling the franchise, they might attract much more money than they bought the franchise for. For instance, in 2018, Jindal South West (JSW) bought the 50% ownership of Delhi Capitals (formerly Delhi Daredevils) from GMR group. At that time the valuation of the franchise was somewhere around Rs 1100 crore and JSW made the payment of half of that amount.
With 10 teams announced, the Board of Control for Cricket in India (BCCI) later announced that the 2022 edition will be a 74-match affair where the teams will play seven away and seven home matches during the course.