Mar. 22 – The Indian Premier League for cricket has gone from strength to strength, culminating in yesterday’s winning bid of US$370 million to buy into the franchise with the creation of a new team from Pune.
The Sahara Group, a travel and aviation businesses, obtained the Pune deal, which will see the city just two hours south of Mumbai join the league next year. A second team franchise was also purchased yesterday by the Rendezvous consortium, winning a US$320 million bid to provide a team from Kochin, in India’s southern Kerala State.
To compare, the contentious takeover of Manchester United by the American Glazer family was a deal worth four times the amount paid for the Pune franchise, at US$1.4 billion. However, the Sahara group will also have to fund the creation of a team, brand identity, and get the new Pune club off the ground from scratch, possibly doubling the initial franchise investment.
The IPL’s third season is currently underway. With a limited twenty overs per side, many of the contests have been exciting and the final results have often come down to the last few balls.
Games during the tournament have been packed to capacity with sales of food and beverages, merchandise and advertising all reaching record levels. The IPL is structured in a similar manner to the English Soccer Premiership, but also borrows from American culture with cheerleaders and massive stadium scoreboards.
The high amounts paid for the new teams reflect the enormous popularity of the IPL franchise and its money making potential. Three years ago the highest amount paid was for the Mumbai Indian’s team, which went for US$100 million. That investment now looks like a bargain.
An example of the sports success and following can be seen in this YouTube clip of last night’s dramatic finale to the Chennai Super Kings match against the Punjab Kings XI.
