Punjab Kings Co-Owner Ness Wadia Said, Expect New IPL Teams Going For Rs 3000-4000 Crore.
Punjab Kings co-owner Ness Wadia believes that the Rs 2 billion base price for two new IPL kits is a conservative number that should increase by 50-100 percent during the bidding.
Punjab Kings co-owner Ness Wadia believes that the Rs 2 billion base price for two new IPL kits is a conservative number that should increase by 50-100 percent during the bidding. The new franchises will be announced on October 25, making the IPL a 10-team affair.
Speaking to News Agencies, Wadia said that the addition of the teams will lead to the appreciation of the value of the IPLs, as well as the existing franchises. “The minimum base price is Rs 2000 crore at the moment, it will cost much more. Based on my little experience and knowledge of the Indian Premier League, 2000 is very conservative and I would not be surprised if it went up a minimum of 50 to 100 percent more than that. I would expect at least Rs 3000 crore plus.
“Everyone wants to be a part of IPL, but only a few can be a part of it,” Wadia said.
When asked if there are concerns that existing teams might have with the addition of more teams, Wadia said:
“There is no concern at all. It is good that two new teams are being introduced.”
“I also feel that IPL is a premium product and with the limited number of teams, the value of all franchises will increase after the addition of new franchises. The addition of 10 teams will bring more breadth and depth to the IPL.
“There have been eight teams for most of IPL history and after this I don’t see any more teams entering the league for at least five or seven years.
“It will also be very good for the broadcasters. I see it as a very positive thing,” he said.
Wadia believes that the new equipment will also make IPL a more robust product. “IPL is the jewel in BCCI’s crown and therefore the jewel will get the right value.
Since there can only be two new teams, it automatically increases the value of the existing franchises.
“It is a closed league and the beauty of today is that you have a fixed asset that not only gives you value, annually, but also consistent annual income.
“You have money coming in, roughly Rs 250 to 300 crore a year, and that’s the inflow into your pocket other than asset appreciation.
“It is like a building in a privileged location and around it people are developing, so the value of its asset also increases.”
New entrants will naturally seek out star Indian players to be their face. The mega auction ahead of the 2022 season will see many Indian and foreign stars return to the auction pool.
Referring to player retention and the Right To Match (RTM) card, Wadia hoped BCCI would make it fair for all participants.
“I don’t know what (BCCI is planning for the auction). Everything that is done must be fair and equitable to the new teams coming in, as well as the existing teams.”
The IPL has also been expanding its wings overseas, primarily in the CPL, where three teams – Saint Lucia, Trinidad and Tobagao, and Barbados – are owned by IPL owners.
Punjab Kings own the St Lucia franchise. Wadia won’t be surprised if more IPL owners follow suit.
“It benefits cricket and I am happy that three IPL team owners are involved and that will spread to other teams sooner rather than later. It all depends on the opportunity.”
“We were looking at CPL for a while, when we felt it made business sense to invest in it, we did,” he added.
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