Reverse bidding: Read how BCCI got richer by over 300 crores through this unique process!
The BCCI is all set to get some mega bucks of approximately Rs 332 crores for two years after the Indian Premier League served as a source for this feature.
New Delhi: The BCCI is all set to get some mega bucks of approximately Rs 332 crores for two years after the Indian Premier League served as a source for this feature.
The suspension of Chennai Super Kings and Rajasthan Royals served as a positive mode for the BCCI who roped in Intex Mobiles and Sanjeev Goenka's New Rising as the two new teams for the Indian Premier League.
Reverse bidding: With the two new franchises set to exist for a period of only two years, the BCCI opted for reverse bidding. This is different from a normal auction, in where interested parties bid the highest amount to acquire a team. This time the BCCI set the base price at Rs 40 crore and said the lowest bidder – the one who will take least share from the central revenue – will get the team. The BCCI invented another idea as they opted that the bidders could even quote a figure in negative – in which case, the bidder will have to pay that negative amount to BCCI. So not only would the BCCI not lose any revenue, but will stand to gain more money.
Bids: There were a total of five bidders for the two teams and Power utility CESC Ltd chairman Goenka-led New Rising bagged the Pune-based franchise with a negative bid of Rs 16 crore. Intex won the rights for the second team, based out of Rajkot, with a bid of -10 crore. Pune will get to pick players first in the players draft scheduled for December 15.
BCCI's gain: Reports suggested that the BCCI don’t have to pay a single penny to the new teams from the central management revenue that they normally pay to the franchises. The revenue from central pool for each team last season was Rs 65 crores. These two outfits have chosen not to take any money out of that central revenue. In addition, they will pay 26 crore annually (16 from New Rising/ Goenka, and 10 from Intex ) to the board to own the teams. So, the board will get around 166 crore annually, and thus, Rs 332 crore over the two years.
BCCI senior official Niranjan Shah, stated on Tuesday on how BCCI will be richer after this deal.
"Look these two franchises has said that they do not want Rs 70 crore from central revenue pool earmarked for franchises each year. In addition they are paying us Rs 16 and Rs 10 crore per year for next two years. This means in one year we are making Rs 166 crore and for two it becomes Rs 332 crore," Shah explained the whole calculation.
Keshav Bansal, Director of Intex Mobiles was happy with the deal.
"Intex Mobiles are based out of Delhi but we have a strong base in Rajkot. Intex mobiles are market leaders over there. However it's not business but passion that made me bid for a team," Bansal told PTI.
Pune gets a second chance in the IPL, after it saw its earlier franchise pull out owing to default payments. This IPL exposure for Rajkot and Pune could serve amends in getting in the public.
(With Agency Inputs)