CVC Capital Partners, an investment firm whose ties to online betting and gambling companies were a source of contention following its successful bid for the new Ahmedabad IPL franchise, is set to receive approval from India’s Board of Control for Cricket (BCCI). A ‘Letter of Intent’ will be issued to CVC Capital as soon as the three-member legal committee gives the go-ahead, according to a BCCI source.
When two new IPL teams were auctioned off in October, CVC was the second highest bidder. CVC was awarded the Ahmedabad franchise for Rs 5,625 crore, while Sanjiv Goenka’s RPSG Group was awarded the Lucknow franchise for Rs 7,090 crore.
A day after CVC was announced as the winning bidder for the Ahmedabad franchise, reports surfaced that they have connections with betting companies in other countries.
Tipico, a sports betting and online gaming company, and Sisal, a betting gaming and payments, consumer/retail company, are listed as portfolio companies on the CVC Capital Partners website. The CVC has previously invested in Formula One, football, and rugby, and ownership of an IPL franchise will be their first foray into the Indian cricket market.
The BCCI office-bearers were informed about the CVC development at the organization’s recent annual general body meeting. CVC has two funds, European funds and Asian funds, according to the members. While its European funds have ties to (sports) betting companies in countries where gambling is legal, its Asian fund is free of such ties. According to a BCCI official, CVC invested from their Asian fund.
The BCCI has also decided to extend the deadline for the two new IPL teams to sign three players before the February mega auction.
The previously established deadline for new teams to sign players was December 25.
Former IPL Commissioner Lalit Modi questioned the BCCI’s decision to allow betting companies to buy IPL teams on the day CVC won the bid for the Ahmedabad team in October. “I suppose betting companies can purchase an IPL team.” There must be a new rule. One qualified bidder appears to also own a large betting company.
The BCCI intends to hold the two-day mega Indian Premier League auction in Bengaluru on February 7 and 8, according to a senior BCCI official on Wednesday. It could be the last mega auction that BCCI holds, as most of the original IPL franchises want it to end.
“Unless the COVID-19 situation worsens, the IPL mega auction will take place in India.” The two-day event will be held on February 7 and 8, and, as in previous years, it will be held in Bengaluru. “Preparations are underway,” a senior BCCI official said on condition of anonymity to PTI.
There have been reports that the auction will be held in the United Arab Emirates, but the BCCI has stated that this is not the case.
However, with the emergence of the Omicron variant of COVID-19 and an increase in cases, the situation will remain fluid; however, if there are restrictions on overseas travel (unless all owners decide to use charter planes), conducting it in India will be less of a logistical nightmare.
This year’s IPL will feature ten teams, with Sanjiv Goenka’s Lucknow franchise and venture capital firm CVC’s Ahmedabad making their debuts in the cash-rich league.