BCCI to adopt 'reverse bidding' process for sale of two new IPL teams
Fans will witness a new method of bidding during the sale of the two new IPL franchises.
New Delhi: With two new teams set to replace the suspended Chennai Super Kings and Rajasthan Royals, the Indian Premier League (IPL) is expected to a follow different auction procedure as compared to previous years.
According to a report in the Times of India, a system of 'reverse bidding' will be adopted by the league in handing out franchises to potential bidders.
The BCCI will set a base price for every franchsie. Interested parties will be allowed to quote a bid lesser than that price, with the franchise being given to the lowest bidder.
The board will pay winning bid amount to the bidder. This amount is expected to cover some portion of the cost for franchise operations.
Also, the bidders can quote a figure running into negative. They will then be obliged to pay that negative amount to the Indian board.
BCCI officials feel that interested parties will like the idea of reverse bidding only if they have a two-year marketing and branding blueprint ready.
Crucially, the franchises that replace RR and CSK will be sold for a period of two years. Hence they will not be eligible to earn a share of the central revenue pool.
The only revenue generation options for these interim franchises will come in the form of prize money (for players), performance-based incentives from the central revenue pool on qualifying for the play-offs, gate money, sponsorships, merchandising and hospitality.
BCCI's AGM on November 9 is expected to ratify the proposal for sale of these two new teams and auction process for over 50 players.
It must be noted that these two franchises will exit the league in 2018 when RR and CSK return.