US investors bet big on Indian cricket with separate billion-dollar deals for 2 IPL teams
Rajasthan Royals and champions Royal Challengers Bengaluru sold within hours of each other, highlighting allure of India’s national pastime
American investors have made a big move into Indian cricket, with two separate billion-dollar deals struck on the same day for teams in the country’s most popular sports league.
No team in the Indian Premier League – one of Asia’s most-watched sports events – had ever sold for more than US$1 billion until a consortium backed by United States businessmen Kal Somani and Rob Walton – the former Walmart chairman – agreed on Tuesday to buy the Rajasthan Royals in a deal that Indian media valued at US$1.63 billion.
That record only lasted hours, though, as an even bigger deal was announced the same day for reigning champion Royal Challengers Bengaluru (RCB). That team was bought for US$1.78 billion by another consortium that includes US billionaire David Blitzer’s Bolt Ventures and American asset manager Blackstone.
The two deals highlight the increasing allure of India’s national pastime among international investors looking to be part of the most popular sport in the world’s populous country.
“It’s mind-boggling numbers,” Indian cricketing great Sourav Ganguly told local reporters. “But great news for Indian cricket and the way forward. I think it’s already as big as the NBA.”
The valuations for the two teams mark a huge jump from their original 2008 sales, when liquor baron Vijay Mallya bought RCB for US$111.6 million and Rajasthan sold for US$67 million.