New IPL Bargain: New Owners Whet Appetite For Indian Sports Properties
When BCCI put out a tender for two new teams for the IPL T20 league, few expected a windfall of Rs 12,715 crore; but for the two new owners – the RP-Sanjiv Goenka group and Irelia Company Pte Ltd (CVC Capital Partners) – it was a question of whetting the appetite for investing in sports real estate.
While for RP-Sanjiv Goenka Group, owners of the Lucknow franchise, it may be an unfinished business with IPL, for global private equity firm CVC Capital Partners, it is about testing. waters with cricket for the Ahmedabad team. first time, having struck a $ 3 billion deal with Spain’s top soccer league, La Liga, earlier this year.
In 2017, when Rising Pune Supergiant lost to the Mumbai Indians by just 1 point in the IPL final, there was an unfinished business for franchise group owner RP-Sanjiv Goenka (RPSG), more for the man behind the Sanjiv Goenka conglomerate.
Allowed for only two seasons with the Gujarat Lions to replace two suspended teams – Chennai Super Kings and Rajasthan Royals for involvement in illegal betting by their respective owners – Rising Pune Supergiant finishing finalist in 2017 left the RP-Sanjiv Goenka group to blame more, even if you have to wait for the door to the IPL to open again.
Read also | Ahmedabad, Lucknow two new IPL teams; Highest bidder CVC Capital & RPSG Group
Around 2021, when the opportunity presented itself, the Kolkata-based conglomerate with an asset base of $ 6 billion and operating in a variety of industries ranging from power and energy, black manufacturing carbon, retail, IT, FMCG, media and entertainment to agriculture, didn’t hesitate to shell out $ 1 billion (Rs 7,090 crore), to grab the franchise IPL Lucknow.
While the amount distributed by the group may raise many eyebrows, especially at a time when companies are still under the impact of the coronavirus pandemic, for the RPSG group, it is a matter of now or never considering how much he’s implicated. with sport and especially cricket.
Goenka, who defined a vision for the dynamic conglomerate focused on “sustainable growth, efficiency and innovation” would surely have done the math on the sustainability of the new Lucknow IPL franchise before investing so much money in it.
When asked on Monday whether the Rs 7,000 crore offer was economically viable, Goenka explained, “We believe the valuation of this one will increase in the future. Years would be a multiple of a few times. “
Read also | 2 new IPL teams bring in 13,000 crore to the BCCI
He was also happy to have Lucknow as his main base, as the RPSG group has business interests in the state of Uttar Pradesh. He said, “We distribute electricity in Greater Noida. We have a number of Spencer stores in the state. So we think this will help us connect with the state, and we look forward to that. “
Over the past decade, just as the group has gradually grown and expanded into renewable energies such as solar and wind power, power distribution, IT services and other areas, its association with sport has also developed.
In 2014, he formed ATK Kolkata in association with one of Spain’s top football clubs, Atlético de Madrid, as one of the Indian Super League teams. They were part of Indian Super League football from their first year as ATK and later merged with former club Mohun Bagan to play as ATK-Mohun Bagan.
In the same year that Rising Pune Supergiant lost the IPL final, the group formed the RPSG Mavericks, one of six urban teams in India’s top table tennis league, launched in 2017.
The group had also co-created the RPSG Indian Sports Honor with Indian cricket captain Virat Kohli – an annual multidisciplinary sports award to recognize Indian sportsmen – of different abilities and abilities, participating in international tournaments.
Then, in 2019, the group instituted the RPSG Indian Cricket Heroes, an annual international cricket awards event, to honor the achievements of Indian cricketers on the international and domestic sports circuit. The property is co-owned with the Cornerstone talent management agency.
For Irelia Company Pte Ltd (CVC Capital Partners) which offered Rs 5,625 crore for the Ahmedabad franchise, beating Adani Sportsline, its investment in IPL aims to further the intention to play a bigger role in sports properties success stories around the world.
This is the first time that a global PE company has acquired a large sports team in the country.
In August of this year, CVC Capital Partners agreed to take a 10 percent stake in Spain’s main football league La Liga for around $ 3 billion.
A major investor in sports in recent years, the global PE company had attempted to invest in big leagues across Europe. Without the objections of a group of teams towards the end, he would have signed a deal with the Italian Serie A football league for a share of media rights.
Founded in 1981, it manages approximately $ 125 billion in assets and $ 165 billion in committed funds.
Currently in India she has two investments – one in Bengaluru-based HealthCare Global Enterprises, a leading cancer care provider, and the other being in UnitedLex, a corporate legal services provider. to clients, which include more than 25 percent of Global Fortune 500 companies, in 18 countries.
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