IPL may get 6 bidders for 2 new teams

The base price of $225 million is still a dampener for prospective bidders who have picked up the tender document for bidding for the franchises of two new teams for the fourth season of the Indian Premier League .

"Not more than six investors are expected to place their bids for the new teams," a BCCI source told Business Standard.

The minimum bid price of $ 225 million (Rs 1035 crore) is almost double the figure of the most expensive IPL team--the Mumbai Indians-- owned by Mukesh Ambani , who had paid $111.9 million in 2008. There were 16 bidders for the 8 franchises in the first season.

According to sources, Videocon , Jaypee Associates, Sahara, Adani Group and a conglomerate in the construction business from Pune will be placing bids. The IPL will be accepting the bids for the two new teams on March 21 at 10 am. The bids will be opened and the winner will be declared at 11 am on the same day.

The IPL had invited bids for the franchises for two new teams in February and was supposed to declare the winners on March 7, however, it had to modify its tender norms after it suffered a setback receiving only two bids for the two teams on offer. Most of the prospective bidders who had bought the ITT had raised concerns on the stiff financial terms of the earlier tender.

IPL later made three major changes in the new tender: the $100 million (Rs 460 crore) performance guarantee as stipulated in the first ITT was brought down to $10 million (Rs 46 crore). The amount should be submitted 24 hours before the bid. The winning bidder will have to submit a bank guarantee, which will be 10 per cent of the bid amount, within 48 hours of winning a franchise. In the earlier tender it was 100 per cent of the bid amount.

The most important change was the withdrawal of the networth clause. In the earlier tender it was $1 billion (Rs 4,600 crore). "Essentially, we have gone back to 2008 when bidding for the existing franchises was held. But, since the values have gone up, the performance guarantee has also gone up from $5 million (Rs 23 crore) to $10 million," IPL commissioner Lalit Modi had said.

 

[Swaswati Borpuzari]

The Indian Premier League (IPL), one of the most lucrative and popular cricket leagues in the world, is poised to expand with the addition of two new teams. According to recent reports, the IPL may attract up to six bidders for these new slots, reflecting the league's immense commercial appeal and global fanbase. The interest from potential investors underscores the IPL's status as a premier sporting event, not just in India but internationally. These new teams are expected to bring fresh energy and competition to the league, enhancing its already vibrant atmosphere. The bidding process, which is likely to be highly competitive, will be closely monitored by cricket enthusiasts and industry experts alike. The addition of these teams is also anticipated to broaden the geographical reach of the IPL, potentially introducing cricket to new markets and audiences. As the bidding unfolds, all eyes will be on who secures these coveted spots and how they will shape the future of the IPL.