CVC Capital and RPSG win bids for Lucknow, Ahmedabad IPL Teams

The BCCI on Monday announced two new IPL Teams, namely Ahmedabad and Lucknow, who will be competing with the existing franchises.

CVC Capital and RPSG win bids for Lucknow, Ahmedabad IPL Teams
CVC Capital and RPSG win bids for Lucknow, Ahmedabad IPL Teams

IPL New Teams 2022:

Private equity firm CVC Capital Partners and Sanjiv Goenka-owned RPSG Group have emerged as the winning bidders for the two new teams for the Indian Premier League.

While the Kolkata-based RPSG won the right to own the Lucknow team Scorchers with a top bid of ₹7,090 crore, CVC will own a team from Ahmedabad called Renegades with a bid of ₹5,600 crore.

The two pipped ten other bidders, including the Adani group and Avram Glazer, whose family owns a majority stake at Manchester United football.

CVC Capital Partners is a private equity and investment advisory firm based in Luxembourg that have invested in other sports across the globe.

For the Kolkata-based RPSG group, this is the second innings in IPL. It had earlier owned the Rising Pune Supergiant which came in as a replacement for Chennai Super Kings.

While Sanjiv gets an opportunity to get back into league, his brother Harsh Goenka, Chairman of Mumbai-based RPG Group, had a different take.

“At expected winning price of ₹3,500-4,000 crore, return (on investment) is poor, consumer catchment is lower in remaining cities and additional matches may lead to TRP fatigue,” he tweeted.

The BCCI was expecting in the range of ₹10,000 crore but the combined bid is around ₹12,690 crore from the two new teams.

Analysts expect the IPL valuation to go up due to the addition of the two new teams. Santosh N, Managing Partner at D and P Advisory told BusinessLine, “From 56 matches, we will be moving to over 70 matches, a 25 per cent increase. 2022 is also when IPL broadcasting rights get renewed, and with the potential merger between Sony and Zee creating a broadcasting giant, the value of IPL might be 50 per cent higher.”