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$1.65 billion! That’s around 15,660 crore in Indian rupees!
A US-based consortium has bought a majority 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 the Mittal Family.
Alongside the Mittals, the consortium includes Adar Poonawalla and the existing Royals owners, including Manoj Badale.
The Mittals are the owners of Arcelor Mittal, a global steel manufacturing company. Notably, the Mittals are from Rajasthan.
Poonawalla, meanwhile, heads the Serum Institute of India. Some of you must’ve taken the Covishield vaccine a few years ago, manufactured by the Serum Institute of India.
Before this deal, a US-based consortium of Kal Somani, Rob Walton and the Hamp family had bought the 100 per cent stake in March 2026. But for some reason, the deal fell through.
What’s the ownership structure in RR?
The Mittals will be the biggest shareholders in the Royals. They will control about 75 per cent of the franchise.
Poonawalla, on the other hand, will hold around 18 per cent, while the other seven per cent will remain with Manoj Badale and some existing owners.
The RR board will have Lakshmi Mittal, his son Aditya Mittal, daughter Vanisha Mittal-Bhatia, Poonawalla and Badale.
What’s involved in the deal?
The consortium will acquire RR for US$1.65 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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