IPL bidding process for the two new teams delayed

More corporates are expected to throw their hat into the ring as the IPL bidding process for the two new teams begins afresh on Tuesday.
 

Reports emanating from different quarters indicate that business houses were now looking at the team auction more proactively after it "has started to make business sense".

Atul Chordia, chairman and chief executive of Panchshil Realty and part of the consortium bidding for the Pune team, was quoted as telling a business daily that they were not concerned about the bid price going up.

"It has to be commercially viable, we are answerable to our shareholders," Chordia said.

Kerala's IPL team owning dream has also been revived with reports of the Muthoot Pappachan Group "assessing the new terms and conditions".

Earlier, film director Priyadarshan and actor Mohanlal had pulled out of the race citing the clause that the net worth for a team had to be Rs 5,000 crore.

But they are not the only ones bidding for a team from God's own country.

According to reports, the Ashok Piramal Group is part of a consortium that includes the Jaypee Group, Shree Ram Group of Industries, Rosy Blue India Pvt. Ltd and Anchor Electricals Pvt. Ltd, which is bidding for Kochi.

With these developments, it seems that Kochi will also join the list for the top bidded teams - something that was expected from the cities of Ahmedabad, Pune and Nagpur.

In fact, Ahmedabad had been tipped to win one of the two bids with top corporates like Adani Enterprises, Sahara Group and ICICI planning to 'show them the money'.

The IPL seems to have got its act together and the initial idea of expanding the base of the tournament to other parts of the country could now actually come true.

Potential franchisees can bid for cities that include Pune, Ahmedabad, Nagpur, Kanpur, Dharamsala, Vizag, Rajkot, Cuttack, Baroda, Kochi, Indore and Gwalior.

Bids will be accepted till 10 am on March 21, following which they will be opened in Chennai on the same day.

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Bid for new teams at IPL will held tomorrow

Bid for new teams at IPL will held tomorrow

When the Indian Premier League (IPL) opens bids for two new teams for the Twenty20 tournament on Sunday, 11 bidders are expected to be in the fray though some others have chosen to keep away thanks to the stiff bidding conditions.
Consortia comprising high profile industry groups and individuals including Adani Group chairman Gautam Adani, Kerala-based financial services player Muthoot Group, Hero Honda MD Pawan Munjal and members of agriculture minister Sharad Pawar's family are likely to put in their bids, according to people close to the matter.
An official involved with the IPL said most bids were expected to be made through consortiums with private equity funding.
The minimum bidding price has been fixed at $225 million. There is a clause however under which bidders have to furnish a bank guarantee for the entire amount for the 10-year contract within a week of winning the bid. Several interested parties, including the Sahara Group, ICICI Ventures, and Bollywood stars Ajay Devgan and Sanjay Dutt, have dropped out from the process, and according to officials three industrial houses decided not to bid for the new teams.

 

The IPL which has gained immense popularity to emerge as the most lucrative cricket property in a short time is increasing the number of franchise teams from eight to ten with its fourth season next year.

New cities in the fray for which potential bidders will bid include Pune, Ahmedabad, Nagpur, Kanpur, Dharamsala, Vizag, Rajkot, Cuttack, Baroda, Kochi, Indore and Gwalior, with Ahmedabad, Pune and Nagpur being the frontrunners.
According to reports there was not a single bidder till Thursday, however as many as 11 bids were lodged for the three cities, seven of these being for Ahmedabad alone. Apart from stringent rules set by the governing council a big deterrent had been the base price which at $225 million was more than four times the base price of $50 million fixed during the first bidding in 2008.
The refrain among those who have chosen to keep away from the process is that the cost of team acquisition was working out to be too high as an investment of minimum Rs1,550 crore was required for buying a team which seemed prohibitive.

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