- Owner of Rajasthan Royals invited 4 groups to next IPL team bidding round
- Somani-led consortium offered $1.3 billion, contingent on IPL media rights
- Sale seen as key indicator of investor interest in elite cricket assets
The owner of the Rajasthan Royals has invited four groups to proceed to the next round of bidding for the Indian Premier League cricket team, including a consortium led by Times Internet Chairman Satyan Gajwani and another backed by US-based entrepreneur Kal Somani.
A preliminary offer of $1.3 billion has come from the consortium led by Somani, who is already an investor in the team, according to people familiar with the matter. The proposal is contingent on the future performance of IPL media rights, the people added, asking not to be identified because the information is private.
The sale of the Rajasthan Royals is being viewed as a crucial indicator of investor appetite for elite cricket assets. While the overall valuations of the IPL have faced scrutiny, bidders are banking on continued long-term media growth and international expansion to support multibillion-dollar franchise values.
Adviser Raine Group launched the sale process with a valuation floor of about $1.1 billion, the people said. The team is majority-owned by Emerging Media Ventures, alongside minority investors RedBird Capital Partners and Tiger Global.
Representatives for Times Internet and Raine declined to comment, while Somani didn't respond to requests for comment.
Blackstone Inc. and Carlyle Group Inc. were also exploring acquiring a stake in the Rajasthan team, as well as Royal Challengers Bengaluru, Bloomberg News previously reported.
The IPL, established in 2008, runs for only eight weeks each spring, with 10 teams competing for the title. The league utilizes a profit-sharing structure, similar to the National Football League in the US, where teams receive a portion of revenue from media rights and sponsorships, distributed alongside the Board of Control for Cricket in India. Franchises also generate income through merchandise and ticket sales.
Early investors have been looking to cash out. Last year, CVC Capital Partners Plc sold its majority stake in Gujarat Titans, valuing the team at about $800 million. Diageo Plc's Indian subsidiary, United Spirits Ltd., has initiated a review of its stake in Royal Challengers Sports Pvt., the company that owns the Royal Challengers Bengaluru franchise.
Times Internet has been expanding its global cricket media and intellectual property empire, including previous investments by Gajwani in the US-based Major League Cricket and England's The Hundred tournament.
Alphabet Inc. Chief Executive Officer Sundar Pichai, Palo Alto Networks Inc. CEO Nikesh Arora, Microsoft Corp. CEO Satya Nadella, Adobe Inc. chief Shantanu Narayen, and Egon Durban, co-CEO of Silver Lake Management LLC, were part of the consortium that successfully bid for the London Spirit. It could not be learned if they are also part of the group bidding for the Rajasthan Royals.
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