Auction of new IPL teams likely to start on October 17 under closed bids
The Board of Control for Cricket in India (BCCI) is likely to addition for two new teams of the Indian Premier League on October 17 under closed bidding.
The 15th edition of the IPL will now have two new teams, which makes the competition a 10-team tournament.
ICC T20 World Cup also starts on October 17 and World Cup begins in Muscat. So the venue for the bidding is likely to be either Dubai or Muscat.
The BCCI is understood to have told the potential bidders that the final date and venue will be intimated later.
“The detailed terms and conditions governing the submission and evaluation of bids including eligibility requirements, the process for submissions of bids, proposed new teams’ rights, and obligations, etc. are contained in the ‘Invitation to Tender’ (“ITT”) which will be made available on receipt of payment of a non-refundable fee of INR 10,00,000 (Rupees Ten Lakhs Only) plus any applicable Goods and Services Tax,”the BCCI had said in an official release.
“The bidding is set to take place on October 17 while queries regarding the same can be made till September 21,”the sources said.
With the addition of two teams, the number of league matches for each team will be either 14 or 18 with a minimum of seven home and seven away games assured to each franchise.
Currently, the league has eight teams and each team gets to play the same, seven home and as many away games.
When the fixtures are revised, there might be nine games at home and nine away but due to the absence of a larger window BCCI might not consider increasing the number of matches.
The number of league matches might be either 74 or 94, depending on the window available.
Regarding the financial requirements, BCCI has made it clear that each bidder needs to have a net worth of at least 2500 crores and a turnover of 3000 crores.
In the case of a consortium, the BCCI will allow only three partners, and one of them has to fulfil the above criteria of 2500 crore net worth and Rs 3000 crore turnover.
The base price of the team has been kept at 2000 crores. These criteria were announced by the Indian board a few weeks ago.
There are two stages of bidding – legal and financial. The financial bid will be opened after the legal department is cleared with the bidder’s qualifying criteria.
One can bid on two to six cities and these include Ahmedabad, Lucknow, Indore, Cuttack, Guwahati, and Dharamsala. As is the process, the two highest bidders will get the right to set up the teams.
The teams will have to pay the 10 percent off franchise fee every year for 10 years and will be entitled to 50 per cent revenues to share and post the 10 years, the franchises will have to pay 20 per cent of its income and will continue to receive 50 percent of the central pool of revenue after every IPL season.
The BCCI is yet to confirm the rules regarding the retention of the players. They are expected to provide two rights to Match (RTM) cards and two retentions.
The details will likely be provided in November 2021 and the mega auction is likely in January 2022.
Some agencies are believed to have brought the ITT in which one of them is Sanjiv Goenka who had previously owned the Pune franchise for two years. Goenka is tipped to buy the Lucknow team.
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