DUBAI • An American capital venture fund and an Indian tycoon on Monday bid more than US$1.6 billion (S$2.16 billion) between them to set up two new teams in the Indian Premier League (IPL), the world's richest cricket tournament.
Sanjiv Goenka, whose RPSG conglomerate includes power, music and plantation concerns, offered more than US$930 million at an auction in Dubai to set up a team in the Indian city of Lucknow, the IPL said. Goenka previously owned the now-defunct Rising Pune Supergiant, who took part in the IPL from 2016 to 2017.
CVC Capital Partners promised more than US$690 million to set up a team in Ahmedabad which houses the Narendra Modi Stadium - the world's biggest cricket arena, which can hold 132,000 fans.
The IPL will increase from eight to 10 teams from next year as it seeks to capitalise on its growing international popularity with increased fees for its television and other rights. The competition will have 74 matches, where each side will play seven home and seven away games.
The winning bids beat 20 other top Indian conglomerates and international concerns such as the Glazer family, owners of English Premier League club Manchester United, to secure the new teams.
CVC, which is based in Luxembourg, has a cash war chest of more than US$100 billion, which it has used in recent years to change international sport.
It has already spent several billion dollars to take stakes in international rugby union and top football properties such as Spain's La Liga.
It has also bought into the international volleyball federation, previously owned Formula One and has been in talks in recent months to merge the ATP and WTA tennis Tours and to take a stake in National Basketball Association team San Antonio Spurs.
"It is good be back in the IPL and I am delighted," Goenka told cricket website ESPNcricinfo.
"It is an initial step. We now have to build a good team and perform."
Sourav Ganguly, president of the Board of Control for Cricket in India, which runs the IPL, said it was "heartening" to see the teams sold for "such a high valuation".
"It reiterates the cricketing and financial strength of our cricket ecosystem," he added.
Ganguly also argued that the involvement of two foreign bidders, CVC and the Glazers, "strongly emphasises the global appeal of the IPL as a sports property".
"The IPL is proving to be a wonderful instrument in globalising the game of cricket," he said.
The IPL, while dogged by corruption and gambling scandals, attracts huge TV audiences in India and has spawned T20 tournaments around the globe.
Its brand value was estimated at US$6.7 billion in 2019 by the Duff and Phelps financial consultancy.
Before the coronavirus pandemic, it was estimated to generate more than US$11 billion for the Indian economy each year.
The Chennai Super Kings, led by former India captain Mahendra Singh Dhoni, won their fourth IPL title by beating the Kolkata Knight Riders in the final in Dubai earlier this month.
The competition was shifted from India because of the pandemic.
AGENCE FRANCE-PRESSE, REUTERS
