Punjab Kings co-owner Ness Wadia feels the Indian Premier League (IPL) is finally getting the valuation it deserves after one of the two new IPL teams was bought for more than Rs 7,000 crore on Monday. The BCCI said in a press release that the Lucknow franchise was bought for Rs 7,090 crore by the RPSG group. The other franchise, based in Ahmedabad, was bought by CVC Capital Partners, a private equity and investment advisory firm, for Rs 5,625 crore.
“I think it was a long time ago. It (IPL) is without a doubt one of the most established leagues in the world. It got the highest viewership and it’s high time it received the awards and the rating it did. “It’s amazing how BCCI and the support staff did a fantastic job and are glad it’s getting the value it deserves,” Wadia said.
When asked what he thinks the valuation of the Punjab Kings franchise could be, Wadia said that Rs 7,000 crore is now the threshold for all the teams, in terms of valuation.
“Expected value is Rs 7,000 crore. That’s the threshold right. It could be even more, because if you look at the calculations and work it out, we have positive cash flow. If anyone in the future is interested in Punjab Kings or any other investing. franchises that may be available for investment, we have a constant cash flow at the moment without any outflow, “he added.
Wadia said it took its franchise about 9 years, from 2008, to break even. But he thinks times have changed and the new franchises may not take as much time to recover costs. He also said that the IPL media rights, which were bought by Star India for Rs 16,347.50 for the 2018 to 2022 cycle, could go for double the amount when bidding before the 2023 season.
“It took us nine years to finally break even. But I think things have changed. The media rights are coming up. I’m pretty sure they’ll go for a staggering amount again. Chances are good it could go for double ( of what it is) has gone for the last time), “he said.
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