Punjab Kings co-owner Ness Wadia feels the Indian Premier League (IPL) is finally getting the valuation it deserves as one of the two new IPL teams was bought for over Rs 7,000 crore on Monday Was. The Lucknow franchise was bought by the RPSG Group for Rs 7,090 crore, BCCI said in a press release. The other franchise, based out of Ahmedabad, was bought by CVC Capital Partners, a private equity and investment advisory firm, for Rs 5,625 crore.
“I think it was long overdue. It (IPL) is undoubtedly one of the most established leagues in the world. It has got the most viewers and it is high time that it has received praise and appraisal. It is amazing. How the BCCI and the support staff have done a wonderful job and glad it is getting the value it deserves.”
When asked what he thinks the valuation of the Punjab Kings franchise could be, Wadia said that in terms of valuation, there is now a limit of Rs 7,000 crore for all the teams.
“Expected value of Rs 7,000 crore. Franchisees that may be available for investment, we currently have consistent cash flow with no outflows.”
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Wadia said that it took his franchise almost nine years from 2008 to break even. But he feels that times have changed and it may not take that long for the new franchisee to recover the cost. He also said that the IPL media rights, which were bought by Star India for Rs 16,347.50 for the 2018 to 2022 cycle, could go for double the amount for bidding before the 2023 season.
“It took us nine years to finally break-even. But I think things have changed. The media rights are coming to the fore. I’m pretty sure they’ll go again for a staggering amount. Chances are, It could be double (what it was for last time),” he said.
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