New Delhi: The massive windfall for the Indian Premier League (IPL) franchise Rajasthan Royals (RR) and Royal Challengers Bengaluru (RCB) has taken the global sports market by storm.
RR and RCB were bought on the same day, with the former being acquired for USD 1.63 billion (approx Rs 15, 300 crore) by a US-based consortium led by Kal Somani and the latter being sold to the Aditya Birla-led consortium for USD 1.78 billion (approx Rs 16600 crore).
The twin deals made the total two-team price USD 3.4 billion (roughly 31,000 crore) and helped RR and RCB enter the big league of the most expensive franchises in global sport.
The eye-watering deals will make a lot of people and organisations super rich, and the Board of Control for Cricket in India (BCCI) is set to be one of the biggest benefactors.
How much will BCCI earn from RR, RCB deals?
Due to the five per cent transfer clause in all ten franchise agreements, the Indian Cricket Board is set to earn a huge amount of money. This clause comes into effect when the ownership of a franchise changes in the IPL.
As a result of the massive deals for RR and RCb, the BCCI is set to make an estimated Rs 1,550 crore to Rs 1,583 crore. The whopping amount would be added to the BCCI’s account as the 5 per cent transfer fee on both sales.
The transfer clause ensures that BCCI benefits financially from every ownership change.
While the deals have been done, BCCI’s approval, which will happen after due diligence, is still awaited.
It is also being speculated that the Paarl Royals of SA20 and the Barbados Royals in CPL have also been included in the deal for the Rajasthan Royals.
RR was previously owned by Emerging Media Ventures, led by British Indian businessman Manoj Badale, while the United Spirits Limited (USL), a subsidiary of UK-Diageo plc, owned RCB.
The Bengaluru-based franchise will now operate under the chairmanship of former IPL recruit Aryaman Birla, son of Kumar Mangalam Birla.