Rajasthan Royals’ stake sale is aimed at increasing the equity value of IPL teams : IPL 2021 prediction

An investment in one of the Indian Premier League teams might have set the stage for an expensive bidding battle next year when the Indian cricket board adds two more squads. Rajasthan Royals’ stock price soared after Red Bird Capital, located in the United States, purchased a share in the team in June, despite the fact that the team had only won one trophy in 13 years of IPL. At a $25 million enterprise value, the company acquired 15% of the franchisee.

The investment comes after IPL matches were relocated from India to vacant stadiums in the United Arab Emirates in 2020, and the tournament was suspended in the middle of its run in 2021 because to a fatal second Covid-19 outbreak. The value of the league’s brand dropped 3.6 percent in a year to Rs 45,800 crore in 2020, the first decline since 2014. Rajasthan Royals, without a doubt, has the lowest brand value. According to Duff & Phelps, A Kroll Company’s study,

The value of the JSW Sports and GMR Group co-owned Delhi Capitals and Punjab Kings is Rs 2,863 crore and Rs 1,936 crore, respectively. According to records with the Ministry of Corporate Affairs, Punjab Kings was valued at Rs 1,500 crore at a repurchase price of 7,661 per share in March, co-owned by Dabur India Ltd. promoter direct Mohit Burman, Bollywood star Preity Zinta, Karan Paul, and Ness Wadia. That was before the Rajasthan Royals sold their share.

This year, the Board of Cricket Control of India is likely to add two more IPL franchises, bringing the total to ten. The auctions for the two new teams are anticipated to begin in August and end in October, with the player auction taking place in December. In January 2022, bidding for media rights is anticipated to begin. The IPL governing board authorised share sale by Rajasthan Royals, which is anticipated to keep the auction price over Rs 1,850 crore. This means that corporate and business houses will compete for a slice of the closed league, which will allow all teams to benefit.

In 2022, the IPL media rights are also set to be renewed, with the cricketing body sharing a percentage of the revenue with the franchises. In 2017, Star Group outbid Sony for the media rights to the event, paying Rs 16,347 crore (almost $2.5 billion) for a five-year period beginning in 2018. With the addition of the new clubs, the number of matches is projected to increase to 74.

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