The Indian Premier League (IPL) is going from strength to strength. Recently, two big examples came through the purchase of two very old franchises — Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR). They have been around right from the inception of the league in 2008.
A consortium led by the Aditya Birla Group, The Times Group, Bolt Ventures & Blackstone came up with 1.78 billion USD to effect the purchase of the Bengaluru-based franchise. For the Jaipur-based franchise, US-based businessman Kal Somani, in the company of Ford & Walton families, spent 1.63 billion USD to gain its ownership.
Reflecting on these developments, Delhi Capitals co-owner Parth Jindal has made a big prediction. He believes that in another 10 years or so, the value of every single franchise in the league can go up 2-3 times, up to 5 billion US dollars.
Jindal is a shrewd businessman. Now in hindsight, he practically spent nothing for a 50 per cent stake in Delhi Capitals in 2019. Nothing, when you keep in mind how the prices have gone up since. Now the league is going through a purple patch, which means the sky is the limit for the league in the coming years. Jindal recalled how he had pulled off a great deal for himself and JSW Group.
“In both the deals, whether it was Rajasthan Royals or RCB, it was an unbelievable valuation. I entered the IPL in 2019 when I took a 50 per cent stake in the then Delhi Daredevils, which is now the Delhi Capitals. I had a tough time convincing my father that we should spend ₹550 crore for a 50 per cent stake. Now I look like a genius. So, I’m very happy,” he said at a Mint India investment summit.
The 35-year-old said the biggest sign that the IPL had got a move on came when it sold the media rights for a whopping amount. “When the last media rights went for ₹50,000 crore, that was the moment IPL truly arrived. The viewership numbers are there for all to see. If any media company wants to play in India, they have to play the IPL. If any brand wants to play in India and gain visibility, they have to play the IPL. The advent of the WPL was a watershed moment for the women’s game,” he said.
