Mumbai: BCCI has launched a tender document to invite bids for two new franchises to be added to the Indian Premier League (IPL).
The document is ready, waiting to be provided for potential bidders at any time in the next 24 hours.
The tender to bid on both new franchises involves the following aspects: RS 3,000 must be an assessment of a company / consortium for potential franchise; Close to Rs 1700 Cr (the top price where the last BCCI sells franchises – to the Sahara in 2010) might be a basic price to start an offer; This will be a closed bid without a technical aspect for it; The potential of the bidder can write to the BCCI request clarification in the tender document – which will be returned to the following month; BCCI will include the number of cities available in this setting for prospective bidders to choose from; And finally, the winner’s offer, after being submitted, will be announced around the Knockout edition of the IPL-2021 on progress.
Cricket boards have planned all these exercises for a year now and investors ranging from Pharma companies in Gujarat and Andhra Pradesh to retail and industrial services in West Bengal; Investment bankers, private equity players who hob-nob between Dalal Street and Wall Street; The consortium or clutch of less well-known entrepreneurs has observed space.
“Yes, the tender document is ready.
It comes out and the board expects a lot of interest and traction,” said an official official BCCI for developments.
Two cities in the race became a very good offer was Ahmedabad and Lucknow.
Ahmedabad because the city is now proud of the country’s largest cricket and infrastructure in the world that includes the LAC 1.10 capacity stadium.
The second city in a fight is Lucknow – the capital of Uttar Pradesh, a state that enters a very important election next year, has a world-class infrastructure in the form of the Atal Stadium at Bihari Vajpayee (also called the Ekana Cricket Stadium) and.
It is home to an area that accounts for more than 50% consumption of crickets directly in the country on television – basically called ‘Heartland’.
There will be other cities in Fray too – Nagpur, Raipur, Pune, Visakhapatnam, Ranchi, etc.
But hope the offer takes place for Ahmedabad and Lucknow and for each franchise for sale anywhere between Rs 3,500 to Rs 4,500 to 4,500.
The company / consortium that won the bidding process will run has a franchise for eternal.
Under the current five-year media rights cycle, the combined central income of the IPL (broadcast + title rights + official partner) stands around Rs 19,500 Crore.
BCCI and eight franchises share this income 50:50.
So, half of Rs 19,500 Crore – namely Rs 9,750 Crore – go to BCCI and the rest is distributed among franchises for a period of five years.
This brings for each franchise estimated Rs 1,220 Crore for five years, which is increasingly boiling around RS 245 Crore-a-year.
Add to central income, income local income franchise itself consisting of sponsors, gate income and local partnerships.
This is different from the team to the team.
Indian Mumbai, for example, managed to bind more than RS 50 crore every season, while several other teams produce between Rs 18 to 25 crore-a-year.
Add to this, estimates income gate anywhere between Rs 2.5 to RS 3 Crore per match and the average local income for the oscillating team between Rs 40 to 70 Crore every season.
For the sake of the ease of calculations, say that the average local franchise income is Rs 45 Crore.
When added to a collection of RS 245 Crore’s central revenue, the total franchise revenue per season before the EBITDA stands around RS 290 Crore.
Add to the gift money – the winner of IPL 2020 MI received 20 CR, while the runner-up DC received 12.5 crores – and the team’s income could pass RS 300 Crore Mark.
But potential buyers of the two new teams who see very carefully are the possibility of increasing IPL’s revenue from 2023 when the media rights will be ready to be contested for the next five years.
This will mean that the part of the team from the central pool will develop too.
Add it into it, competition between the bidder that will push the price up.
“Anyone who wants to buy a team must be willing to bear the loss of Rs 1000-Cr in the first 10 years and then wait to redeem it once the payment cycle (to BCCI) takes place,” they said that the space for spacecraft.
BCCI tender for new IPL franchises to be launched; This is what expected …
