After the windfall
The bankers pitched 60-90% growth in the IPL’s next media rights cycle. The buyers modelled 20%. The gap between those numbers will shape what RCB and Rajasthan Royals are worth
The bankers who advised on the sale of the Royal Challengers Bengaluru (RCB) and the Rajasthan Royals (RR) had made different projections for the Indian Premier Leagues (IPL) next media-rights cycle. Citigroup presented Diageo’s projections for RCB. The Raine Group did the same for Manoj Badale’s Emerging media an RR.
RCB materials projected media-rights growth of 60-70%, while RR’s projected 80-90%, as The State of Play reported in January.
On Monday, the binding bids arrived. For RCB, two consortiums: Swedish PE giant EQT with Premji Invest, first reported by Moneycontrol, competing against Ranjan Pai’s group with KKR and Temasek. Diageo, which aims to conclude its strategic review by March 31, will choose between the two. For RR, four parties submitted bids: Aditya Birla Group with David Blitzer’s BOLT Ventures; the Times of India Group;. Kal Somani’s consortium with Rob Walton, and a late bid involving Aditya Mittal, son of LN Mittal, first reported by Moneycontrol.
The bidders include global private equity firms, Indian industrialists, and a media company. All modelled media-rights growth below the sellers’ forecasts, according to people familiar with their projections.
That gap will affect the prices paid for RCB and RR, and the valuations of the league’s other right franchises
