There are only five or six serious bidders expected in the fray as the base price for the new teams is pegged at INR 2000 crore. But there are 22 companies that have picked up the tender document worth Rs 10 lakh.
A consortium of up to three companies or individuals are allowed to bid for a franchise according to BCCI.
But in the case of an individuals or company, their particular entities must have an annual turnover of at least INR 3000 crore. In case of consortium, each of the entities should have an annual turnover of INR 2500 crore.
Business tycoon Gautam Adani and Adani Group are expected to bid for the Ahmedabad franchise and they are considered to be favorites as the new owners of the franchise, if they do put up a bid.
Similarly the RPSG group, headlined by billionaire Sanjiv Goenka is also considered to be a serious bidder for the new franchise. It is unclear if RPSG will have any individual or other company as a part of it’s consortium.
“Gautam Adani and Sanjiv Goenka are the biggest names in the Indian industry. They will be serious bidders. Expect a minimum bid of INR 3500 crore from the potential bidders. Don’t forget that IPL broadcast rights is projected around USD 5 billion (Rs 36,000 Crore).
“So the economics will work accordingly as franchises get the TV revenue share equally,” said a BCCI insider tracking the developments on conditions of anonymity.
Sanjiv Goenka owned the Pune Franchise, Rising Pune Supergiants (RPS) for two years as well as the ISL franchise ATK Mohun Bagan.
Recent news reports also stated that the Lancer group owned by Manchester United owner Avram Glazer, had also picked up the bidding documents. The other well known companies in the fray are, Kotak group, pharmaceutical majors Aurobindo Pharma and Torrent group.
There are two favourites in terms of the stadium capacity and these are Narendra Modi Stadium in Motera with a capacity of 100,000, and the other is Ekana Stadium in Lucknow with a capacity of 70,000.
The other contenders in the hunt are Indore, Cuttack, Dharamsala and Pune.
Another potential serious bidder is a former India opener and he may join one of the consortiums.
“Yes, a former India opener is ready to shell out around INR 300 crore and buy a minority stake if the consortium he is part of is able to successfully bid for a new team. He comes from a business family and he does want to invest in a cricket team.
“He is a distinguished player in his own right and also understands how the franchisee universe works,” the BCCI source said.
Key FAQ
Q How many teams are up for bidding?
A BCCI will have two new teams as IPL will be 10-team league from 2022.
Q What is the bid price of tender document?
A: The bid price of tender document is Rs 10 lakh.
Q: Which are the cities in fray?
A: Ahmedabad, Lucknow (two favourites), Indore, Guwahati, Pune, Dharamsala, Cuttack.
Q: What is the Base Price set by BCCI?
A: The base price per team Is Rs 2,000 Cr. This means no potential buyer can bid less than that. That’s the minimum amount from where bidding starts.
Q: Which kind of companies can bid for a franchise?
A: Any company (even overseas) which has its operations in India and is enlisted can bid for a team. However, the annual turnover has to be minimum Rs 3000 Crore.
Q Is Consortium (a joint bid from multiple companies) allowed?
A Yes, consortium of 3 companies/entities is allowed. However, each will have to have a net worth of Rs 2500 crore annually.
Q How many companies have picked up the bids?
A: 22 companies have picked bids.
Q: Major names who have picked up the bid document?
A: Adani Group, RP Sanjiv Goenka, Kotak, Torrent Pharma, Aurobindo Pharma, Lancer Capital (Avram Glazer owner of Man United), Naveen Jindal.
Q: Will Bollywood couple Deepika Padukone and Ranveer Singh join a consortium?
A: There is no such confirmation as of now but they could be a minority stake holder or brand ambassadors of a new franchise.
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