BCCI official says, ‘Base price for new team 2,000 Crores’, Adani & Goenka’s interested to bid for the new franchise

The Governing Council of the Indian Premier League has invited bids to acquire the right to own and operate 1 (one) of the 2 (two) new teams proposed to be introduced in the tournament from 2022 through a tender process.

According to the information available with 11Cricketers, the base price of new IPL teams has been fixed at Rs. 2,000 Cr according to a top BCCI official. BCCI last year had declared that two new team will be added to the league in 2022.

“The detailed terms and conditions governing the submission and evaluation of bids including eligibility requirements, process for submissions of bids, proposed new teams’ rights, and obligations, etc. are contained in the ‘Invitation to Tender’ (“ITT”) which will be made available on receipt of payment of non-refundable fee of INR 10,00,000 (Rupees Ten Lakhs Only) plus any applicable Goods and Services Tax. The ITT will be available for purchase till October 5, 2021”, as per the BCCI release.

Interested parties are requested to email at [email protected] to get further details for purchasing the ITT. The email requesting the ITT should have the subject line “ITT for the Right to Own and Operate One of Two Proposed New IPL Teams”. 

IPL New Team – Base Price?

“Any company can buy the bid document. Earlier top brass was thinking about keeping the base price for two new teams at Rs 1700 crore but later it was decided to keep the base price at Rs 2000 crore,” a senior BCCI source told PTI on the condition of anonymity.

IPL 2022 New Teams: BCCI official says, ‘Base price for new teams 2,000 Crores’, Adani & Goenka’s interested to bid for the new franchises

IPL 2022 New Teams – What does this base price of 2000 Cr mean for BCCI? The source, who has dealt with the financial side of IPL in the past, said that the BCCI stands to gain at least Rs 5000-6000 crore if the bids go as per plan with plenty of large business conglomerates showing active interest in bidding.

“The BCCI is expecting anything in the range of 5000 crore if not more. There will be 74 IPL games next season and it’s a win-win situation for everyone.”.

“IPL teams are a great investment and have given the initial investors great returns. We don’t think base price of 2,000 Cr is too much and we expect to get 3000-3500 Cr per team”, declared top BCCI official

It is worth noting that when initially the first 8 teams were sold in IPL in 2008, the base price was USD 50Mn (Dollar was capped at Rs 35)

Mumbai Indians was sold to Ambani’s for $111.9 Mn
RCB at $111.6 Mn
Deccan Chargers went at $107 Mn
CSK was sold at $91 Mn
Delhi Daredevils – $84 Mn
Kings XI Punjab – $76 Mn
Kolkata Knight Riders – $75.09 Mn
Rajasthan Royals was the cheapest team at $67 Mn

IPL 2022 New Teams – What will be the criteria for the bidders? Which business houses are interest to bid? 

It is learnt that only companies with an annual turnover of Rs 3000 crore will be allowed to bid for the teams.

In a welcome news, the BCCI is planning to allow a consortium to bid for teams as it makes the bidding process more vibrant.

“I think more than three business entities won’t be allowed to form a consortium but if three business come together and wants to jointly bid for a team, they are welcome to do so,” he said.

 So who can afford such an investment and who will be in line to bid? 

The answer is clear. Since the last 12 months, two names doing the rounds are Kolkata-based RP-Sanjiv Goenka Group based out of Kolkata & the Adani group headquartered in Ahmedabad. Both have shown keen interest in having an IPL team on many occasions in the past and will surely throw their hat in the ring when the tenders are released.

Other than this, InsideSport is privy to the information that big Gold Finance company down South is also interested in acquiring the IPL unit along with a Pharma company based out of Hyderabad.

Once BCCI formally releases the tender, more names can come out in open to acquire the most growing sports asset across Asia.

Among the venues where the teams could be based include Ahmedabad, Lucknow and Pune.

The Narendra Modi Stadium in Ahmedabad and Ekana Stadium in Lucknow, with bigger capacities, could be the choice for franchises.