The year was 2008. The Indian Premier League’s (IPL) first season.
On one hand, we had some of the most valued franchises. And then there were Rajasthan Royals (RR), the least valued team at that time.
Now, the same Royals have been sold for a handsome price. Can you guess the price?
It’s US$1.63 billion! That’s around 15,300 crore in Indian rupees!
A US-based consortium has bought a 100 per cent stake in the Royals franchise.
But why were Rajasthan Royals sold?
See, Rajasthan’s previous management had minority investors. One of those investors, RedBird Capital Partners, wanted to exit.
When RedBird came onboard in 2021, they had a drag-along cause in their agreement. This basically allowed them to propose a 100 per cent sale of RR. And hence, RR management had to look for new owners.
So, who are the new owners of Rajasthan Royals?
Rajasthan’s ownership is now in the hands of a consortium led by Kal Somani. Somani, in fact, held a minority stake in the Royals before the complete takeover. Alongside Somani, the consortium includes Walmart’s Rob Walton and the Hamp family.
Who is Kal Somani?
Somani is a US-based tech entrepreneur. He is the founder of IntraEdge, Truyo and Academian.
Somani also co-owns Motor City Golf Club along with Walton and the Hamp family. He is also an investor in TMRW Sports, a tech-focused sports venture, and TGL Golf League.
Speaking of Walton, he owns Denver Broncos in the US-based NFL. Likewise, the Hamp family owns Detroit Lions in the same league.
What’s involved in the deal?
The Kal Somani-led consortium will acquire a 100 per cent stake from the existing Rajasthan Royals owners. And for the full purchase, the consortium will pay US$1.63 billion.
The Royals were valued at US$67 million back in 2008. So their valuation has now gone up by 23 times!
Alongside RR’s takeover, the new owners will also operate other Royals’ franchises in the CPL (Barbados Royals) and the SA20 (Paarl Royals).
The biggest beneficiary of the deal is Manoj Badale, who had around 65 per cent stake in RR through Emerging Media.
Lachlan Murdoch, one of the investors from 2008, is also set to pocket huge returns for his 13 per cent stake sale.
Does BCCI benefit from this deal?
Yes. The BCCI is set to earn five per cent of the deal as a transfer fee. So, their share is around US$81.5 million.
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