The US-based Kal Somani-led consortium on Tuesday alleged a lack of transparency and integrity after losing the bid to acquire the Indian Premier League (IPL) franchise Rajasthan Royals to the group led by industrialist Lakshmi N. Mittal.
In a joint statement issued by Somani, Rob Walton (Walmart Group) and Sheila Ford Hamp (Ford Group), the consortium said it was “deeply disappointed and surprised” by the outcome, while denying reports that it had withdrawn from the bidding process. The group asserted that the final result did not reflect a “level playing field”.
According to the franchise, the Somani-led group had pulled out of the race, paving the way for the Mittal family—along with Aditya Mittal and vaccine manufacturer Adar Poonawalla—to acquire a majority stake in Rajasthan Royals for USD 1.65 billion (approx. ₹15,600 crore).
“We are deeply disappointed not to be part of the Rajasthan Royals ownership group, following a long six-month process in which we were the lead bidder from start to finish. Our consortium worked tirelessly to assemble a distinguished group of investors, with ownership experience across the NFL, MLB, EPL, La Liga and TGL. We were all motivated by the opportunity to help take the IPL to new international heights,” the statement read.
It was only a month ago that the Somani consortium had reportedly locked in a $1.63 billion buyout after edging past the Times Internet-led consortium, the Aditya Birla Group and the Mittal family, led by ArcelorMittal CEO Aditya Mittal.
“Throughout the process, we were the strongest group at every stage, competing against some of the most prominent investors in the global sports investment landscape,” the statement added.
Amid speculation that the consortium faced funding issues, the group categorically denied the claims, stating that finances were never a concern.
“Contrary to stories that have been planted in the press, our group was—and has always been—fully funded, prepared to close with certainty, and never withdrew our bid.”
The consortium further claimed that it had completed documentation and was informed that a franchise board meeting on Saturday would approve its bid.
“We had executed documentation in place and were told that the franchise’s board meeting on Saturday was held to approve our consortium. In the end, this was never the case. We approached this process with the highest standards of honesty, integrity, professionalism and in good faith, but unfortunately, that wasn’t enough.”
“We do not believe the outcome ultimately reflected a level playing field, and it is difficult to reconcile the strength of our bid and preparedness to close with the final decision,” the statement said.
However, a PTI report suggested that the decision stemmed from multiple issues with the consortium’s documentation, which reportedly did not pass scrutiny from the existing owners, including Manoj Badale. Specific details were not disclosed in the official announcement confirming the Mittal-Poonawalla acquisition.
“While we respect competitive outcomes, we also believe that processes of this significance should be conducted with transparency, consistency, integrity and in good faith,” the group added.
The Mittal family will hold approximately 75 per cent of Rajasthan Royals, with Poonawalla owning around 18 per cent. The remaining roughly 7 per cent will be retained by approved existing investors, including Badale.
The restructured Rajasthan Royals board will include Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla and Manoj Badale.
