New Delhi, March 27 The fact that renowned American companies are investing in legacy franchises like RCB and Rajasthan Royals validates how investors view the IPL as the "highest growth sports opportunity in the world," Times Internet Limited chairman Satyan Gajwani said on Friday.
Recent ownership changes in the Indian Premier League reflect a significant surge in its commercial value, with teams now valued at billions of dollars, cementing its status as a top-tier global sports event.
"As you have seen, there were multiple international parties interested in the teams. It is a great validation for the IPL and WPL's success to date and their future prospects. Many investors see the IPL as the highest growth sports opportunity globally," Gajwani, the new co-owner of RCB, told
Gajwani is part of the consortium comprising Aditya Birla Group, Times Group, David Blitzer's Bolt Group, and American Private Equity firm Blackstone's BXPE, which bought a 100% stake in RCB for USD 1.78 billion (Rs 16,700 crore) from United Spirits Limited.
The Rajasthan Royals consortium comprises Rob Walton, owner of Walmart, who also owns the Denver Broncos, and Sheila Ford Hemp (related to Ford group), who is the principal owner of Detroit Lions. The RCB consortium also includes David Blitzer, owner of NBA giants Philadelphia 76ers.
Gajwani, who will be the vice-chairman once the new owners take over, discussed various issues including whether the winning bid was a good deal, how the four companies came together, and his discussions with Virat Kohli, the team's biggest icon, about a successful collaboration.
Was the price of less than USD 2 billion a good deal?
"The media has reported the value to be a 'steal' given the pricing," Gajwani said.
"Pricing is always subjective. It's a good price for a strong franchise, and I believe both buyers and sellers are happy with the outcome," Gajwani said.
Times Group was also interested in Rajasthan Royals.
Gajwani revealed that the Times Group was also interested in acquiring Rajasthan Royals.
"Yes, we thoroughly evaluated both franchises. They are different and have their respective strengths and weaknesses. We are extremely happy with the outcome of the process," Gajwani said.
Gajwani believes that each member of the consortium will bring unique value to the table in the coming years.
Asked about how he, Aryaman Birla, Bolt group, and Blackstone came together, he said it was mainly due to each entity complementing each other.
"Each of us independently had an interest in the opportunity. During the bidding process, we got to know each other better, understood each other's goals, and found them to be complementary," he said.
"Each member brings something unique – industrial strength, media and cricket expertise, global sports knowledge, and deep financial acumen. It's a powerful combination."
While he didn't want to reveal the specifics of how the consortium arrived at a USD 1.78 billion buying price, he praised the BCCI for creating a valuable property.
"We can't reveal the specific numbers, but generally, we believe the IPL and WPL have significant growth potential, whether it's through media rights or developing opportunities to engage with fans more closely," he said.
"A lot of credit goes to the BCCI for building this property. The fact that the IPL is one of the world's most sought-after leagues today is a testament to their efforts," he added.
Once the deal is finalized, we will discuss with Virat
Once the deal is finalized, we will have extensive discussions with Virat Kohli to understand his goals and objectives, and how we can collaboratively drive success for all involved.
Virat Kohli has been integral to RCB's identity for the past 18 seasons, and Gajwani understands this. Once the new owners sign the deal, they plan to have close conversations with Kohli and his team to understand their goals and objectives and how to collaboratively drive success.
"Virat is an iconic player, and we're grateful to partner with him. When the deal is finally completed, I am sure we will have close conversations with him and his team to understand their goals and objectives, and how we can collaboratively drive success for all involved," the vice-chairman commented.
Royal Challengers Bengaluru is a brand that got its name from the UB Group's alcoholic beverage brand. After Diageo took over and -- being in the alcoholic beverage business themselves -- kept the name. Will the new consortium think of changing it?
Gajwani hinted that there will be no change to the name Royal Challengers Bengaluru as the brand has been "extremely strong".
"Our attitude today is that the franchise, its brand, its performance – both on and off the field – have been extremely strong, and so our default position is to support the team, its vision, its approach, and its execution as they have done to date," he said.
Experience of running MLC did come in handy
While Major League Cricket in America is still in its infancy, running it has helped in understanding the economic intricacies associated with franchise cricket.
"The IPL and MLC are very different. The MLC is about growing cricket in a market where most of the population is not familiar with the sport; the IPL is about capitalizing on perhaps the most important consumer engagement touchpoint in India. Same sport, very different circumstances," he signed off.