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IPL Gets 2 New Team | RP Sanjeev Goenka Group wins IPL franchise from Lucknow And CVC Capital bag Ahmedabad team
Creator : Bhaskar
Category : Editors Pick

IPL Team Auction: Sanjiv Goenka's RPSG group bags Lucknow franchise; CVC  Capital takes AhmedabadThe mammoth of news was hovering around the cricket arena on 25th October, Monday, as the cricket fans were curious to know about the two brand new teams enlisted for the Indian Premier League. The final quotes were submitted by the interested alliances to the members of BCCI. As a result, two of the alliances were shortlisted to the final list. 

The few bigwig's companies who took part in this event were Adani Group, Jindal steel and power, Torrent Group, Rhiti Sports, Aurobindo Pharma, Kotak Group, and many other leading companies of India took part in this event.

 

RPSG- SanjivGoenka multinational company nerve centre in Kolkata won the proposal for the Lucknow team bidding for Rs 7090 crores. Another multi-corporate company that won the bid was Irelia Company Pte ltd- CVC Capital Partners for Ahmedabad for the price of Rs 5166 crores.

Let's learn about the two megacorporation companies that won the bid for the new upcoming teams in the IPL 2022.

                                                       

RPSG Ventures

 

RP- SanjivGoenka is an Indian Multinational company with numerous business entities, including power and energy (CESC), entertainment industry (Saregama), retail, FMCG (Too- Yumm, Nature basket, spencer's), IT-related services (first Source Solutions). These are the few of them listed here.

This is not the first time that Sanjeev Goenka has stepped into the IPL. In 2016-2017 he entered into the league with a team named Rising Pune Supergiants. Proving it to be a most remunerative business of IPL matches with a new name.

 

He is also the part of Ultimate Table tennis league with his team named RPSG Mavericks Kolkata. Also, has a major stake in ATK- Mohan Bagan a football club in Kolkata that plays for Indian Super League.

 

CVC Capital Partners

 

CVC capital partners is a private outlay and investment counselling association. The funds are counselled by CVC, which is capitalized in 73 companies globally, procuring over 300,000 employees from all over the world. Alone it has 24 offices in Europe, Asia and America. CVC has its headquarter is in Luxembourg and head office in London.

 

CVC has run twice into the controversies of fixing and betting and their connections with such companies. CVC capital partners had to pay a huge amount for breaking the competition rules through price-fixing to a Dutch company. Also, a charge of abusing and domineering gesture against CEO of pharma firm Alvogen, Robert Wessman, in which CVC is the largest stockholder of Alvogen. 

 

While CVC Capital Partners are indulged in international sports, they are involved in Rugby and Formula 1 races. Now, entering into the 22- yard game of cricket. CVC is an expert in gaining massive profit from the sporting enterprise.

 

BCCI Concern for the bad remark of CVC capital partners

IPL was already in the limelight for match-fixing and betting defamation in 2013. Many players were arrested. Later they were not found guilty. Chennai super kings and Rajasthan royals were put under a ban for 2 years after some of their representatives were charged by the supreme body for exploitation.

 

Under the current situation, when CVC's capital partners' name is connected to such controversies, BCCI was concerned about their name getting maligned once again. As gambling and betting are outlawed in India.

 

Top insiders revealed that BCCI was informed about the CVC Capital's firm disputes, and it was bizarre on their part to not observe during the verification stage before announcing the names of the companies. 

A senior member of BCCI stated that "CVC Capital is a big private equity company and they are free to pick up stakes in a betting company because betting is legal abroad. Betting is a matter of perception. It should not be confused with match-fixing." 

 

After the conversation with CVC Capital members and staff, BCCI found no legal issue regarding betting or fixing with the company. BCCI was later persuaded with their opinion of selecting the former company for the IPL team.

 

What it means for IPL

With two brand new team entering the Indian Premier League (IPL), what does it means for IPL and the fans of the franchise? It's a win situation for all, the two new teams will be representing the Hindi speaking audience who has always been one of the largest audiences for the IPL; now, when the teams will be associating with the two new cities, it'll only mean new regional fan base, wider coverage, more matches, and more sponsors. 

 

Having the teams in the name of cities will hugely help marketing and branding; now the sponsors and brands can concentrate on targeting a specific audience with the specific taste and requirements on a regional level. More city base loyalty means more opportunities for marketing and expanding the reach.

 

Apart from the branding benefit, there is a very good opportunity for sighting new talents. Many new talented players will be benefited from the formation of these teams. IPL has been creating a lot of opportunities in the form of media spending, job opportunities, talent discovering, and spending on merchandise all across the country. 

 

What it means for the team owner

The amount spent by biding on the teams might seem a bit exuberant to many, but keeping in mind that in 2008 IPL was launched with a budget of nearly Rs 3,000/- crores for eight teams, it has come a long way, and now the estimated worth of the sports franchise is roughly around Rs 50,000 crores.

 

The value of these teams will be significantly high in the next 15 years, and that would be a massive boost for the companies. All that the owners have to do is keep the liquidity of cash flowing for the marketing and procuring of the players every year. 

 

Important revelation from BCCI

The Governing conclave of IPL has announced an ITT (Invitation to Tender) to attain the two new teams fundamentally. Compatible with the ITT, companies interested presented their bidding amount for the new teams. 

 

The winning bidders will launch their team in the next season of IPL in 2022 with 10 teams, including the winners. In 2022, there will be 74 matches; wherein each team will play 7 in group matches and 7 outgroup matches. 

 

BCCI was expecting a total amount of 10,000 crores from the new IPL teams in 2022. But they were awestruck when they made a profit of 2,690 crores extra from their expected amount. 

 

The eight IPL authorities will be allowed to have a maximum of four players. The two new teams can choose three players for the remaining gentlemen in the league advancing in the auction of 2022.

 

The eight teams can have two Indian and two foreign players or three Indian and one foreign player.

 



Image Cr- Mint, 

 

 

 

 

 

 

 

 

 

 

 

 

 


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