Ground Report | New Delhi: BCCI invites tender for new IPL; The Board of Control for Cricket in India BCCI has put a base price of INR 2000 crores for new teams of the Indian Premier League (IPL) on August 31 after issuing a release inviting bids for two new franchises.
The BCCI is looking at re-introducing an old method (used in 2011 when there were 10 teams) by dividing teams into two groups of five each, with each side playing five teams and one against four other teams. Plays once home and outside.
BCCI invites tender for new IPL franchises
The final sale price could be over Rs 3000 crore per team, but a BCCI official said the board expects it to be more than double the reserve fee. Ahmedabad and Lucknow are the preferred destinations but some other cities are also available for purchase. The entire bidding process could end by the second week of October, allowing the two new franchises to watch the IPL final in Dubai on October 15.
The interested party has to purchase an invitation to tender by paying a non-refundable amount of INR 10,00,000 and GST before placing his bid.
“Any interested party who wishes to submit a bid is required to purchase the ITT. However, only those who fulfill the eligibility criteria laid down in the ITT and subject to other terms and conditions laid down therein shall be eligible to bid. It clarified BCCI Secretary Jay Shah said that mere purchase of this ITT does not give any person the right to bid.
New team franchise
A person familiar with the development said companies bidding for new franchises could be bought by companies with a valuation of Rs 3,000 crore. Also, the base price for bidding could be closer to ₹1,700 crore (the upper price at which BCCI last sold the franchise – to Sahara in 2010). It will be a closed bid, said the person, refusing to be named.
“To me, ₹2,000 seems like a realistic base figure for a new team franchise as the league has grown and the teams are earning decent annual revenue which can go up to ₹70 crore. I believe that Many corporates are interested in riding the IPL wave and I would not be surprised if the bids can go up to ₹4,000 – ₹5,000 crore. There is money to be made,” a senior sports executive said on condition
Star India, the official broadcaster of the T20 league, has paid Rs 16,347.50 crore for 2018-2022, but this was for 60 matches per year. The broadcast rights are expected to be renegotiated once the two new teams are added and the number of matches is expected to be 94. Experts also said that the new teams will grow the overall IPL ecosystem with the support of the local economy through the opening up more players, support staff as well as hospitality and travel-related opportunities.