Summary of this article
Satyan Gajwani revealed American investors view IPL as 'highest sports growth opportunity'
He also assured to have talks with Virat Kohli on future together after deal completes
Gajwani is part of the consortium which purchased 100% stakes of RCB
Renowned American companies buying stakes in legacy franchises like RCB and Rajasthan Royals validates how these investors view the IPL as the "highest growth sports opportunity in the world", Times Internet Limited chairman Satyan Gajwani said on Friday.
Recent ownership changes in the Indian Premier League reflect a significant surge in its commercial value, with teams now trading at billion-dollar valuations that cement its status as a top-tier global sports event.
"As you would have seen, there were multiple international parties interested in the teams through the process. It is great validation for the IPL and WPL's success to date and their promise and trajectory ahead. Many of these investors see the IPL as the highest growth sports opportunity around the world today," Gajwani, RCB's new co-owner, told PTI in an exclusive interview.
Gajwani is part of the consortium comprising Aditya Birla Group, Times Group, David Blitzer's Bolt Group and American Private Equity firm Blackstone's BXPE, which bought a 100 percent stake in RCB for USD 1.78 billion (Rs 16,700 crore) from United Spirits Limited.
The Rajasthan Royals consortium comprises Walmart owner Rob Walton, who also owns NFL team Denver Broncos and Sheila Ford Hemp (related to Ford group), who is the principal owner of Detroit Lions. The RCB consortium also includes David Blitzer, the owner of NBA giants Philadelphia 76ers.
Gajwani, who will be the vice-chairman once the new owners take over, spoke on a range of issues including whether the winning bid was a steal, how the four companies came together, and discussions with the men's team's biggest icon, Virat Kohli, about a successful collaboration going forward.
Was the price at less than USD 2 billion a steal deal? "The media has reported the value to be a 'steal' of sorts given the pricing.
"Pricing is always subjective. It is a strong price for a strong franchise, and I think both the buyers and sellers are happy with the outcome," Gajwani said.
Times Group was also interested in Rajasthan Royals
Gajwani revealed that the Times Group was also interested in acquiring Rajasthan Royals.
"Yes, we evaluated both franchises closely. They are different and have their sets of pros and cons. We are extremely happy with the outcome of the process." Gajwani feels that each member of the consortium will bring in something unique to the table in the coming years.
Asked how did he, Aryaman Birla, Bolt group and Blackstone came together, he said it was a lot to do with each entity complimenting each other.
"Each of us independently had interest in the opportunity. Over the course of the bidding process, we came to know each other better, the respective goals for each of the members, and we found them to be complimentary.
"Every member brings something unique to the table – industrial heft, media and cricket depth, global sports expertise, and deep financial acumen. It's a powerful combination." While he didn't want to get into the details as to how the consortium arrived at a buying price of USD 1.78 billion, he lauded the BCCI for creating a property that could fetch a premium dollar.
"Can't go into the specifics of the numbers, but generally speaking, we believe the IPL and WPL have substantial room for growth, whether it be by way of the media rights, but also in terms of developing our franchise specific opportunities to engage with fans closer.
"A lot of credit here should go to the BCCI in terms of how they've built this property. It is to their credit that IPL is among the world's most sought-after leagues today."
Once Deal Is Complete, We Will Have Discussions With Virat
For the past 18 seasons, Kohli has been integral to RCB's identity and Gajwani understands that. Once the new owners sign the deal on dotted lines, they plan to hold extensive discussions with the legendary former India skipper to understand his goals going forward.
"Virat is an iconic player, and we're grateful to be able to partner with him. When the deal finally gets completed, I am sure we will have close conversations with him and his team to understand their goals and objectives, and how we can collaboratively drive success for all involved," the vice-chairman commented.
Royal Challengers Bengaluru is a brand that got its name from the UB Group's alcoholic beverage brand. After Diageo took over and -- being in the alcoholic beverage business themselves -- kept the name. Will the new consortium think of changing it? Gajwani hinted that there will be no change to the name Royal Challengers Bengaluru as the brand has been "extremely strong".
"Our attitude today is that the franchise, its brand, its performance – both on the pitch and off – have been extremely strong, and so our default position is to support the team, its vision, its approach, and its execution as they've done to date."
Experience of Running MLC Did Come In Handy
While Major League Cricket in America is still in its infancy, running it has helped in understanding the economic intricacies associated with franchise cricket.
"The IPL and MLC are very different. The MLC is about growing cricket in a market where most of the country is not aware of the sport; the IPL is about capitalising on perhaps the most important consumer engagement touchpoint in India. Same sport, very different circumstances," he signed off.
