In a recent development in the world of Indian Premier League (IPL) cricket, the owners of three prominent teams have initiated discussions with the Board of Control for Cricket in India (BCCI) concerning their financial expansion endeavors, sources have disclosed.
KPH Dreams Cricket Pvt. Ltd, the entity behind Kings XI Punjab, and JSW GMR Cricket Pvt. Ltd, responsible for Delhi Capitals, have expressed contemplation over the prospect of launching initial public offerings (IPOs) as part of their financial strategy. Meanwhile, Rajasthan Royals is considering a different approach, aiming to secure private equity funding, as shared by an undisclosed BCCI official, who preferred anonymity.
This overture to the BCCI, however, remains in its preliminary stages, with no definitive plans currently in place.
JSW GMR Cricket, the holding company overseeing the Delhi Capitals IPL team, seeks clarity from the BCCI regarding the feasibility of going public. Parth Jindal, Chairman of JSW GMR Cricket, stated, “We don’t have absolute clarity on whether IPL teams can go public. We are awaiting clarity from BCCI on whether franchises are allowed to access capital markets and go public.”
Jindal elaborated that the company has made unofficial inquiries but has not yet officially approached the BCCI. “We also believe that some other teams have officially inquired,” he added. Thus, they are eagerly anticipating guidance from the BCCI regarding this matter.
Jindal further speculated about the potential merger of their IPL teams, Pretoria Capitals and Dubai Capitals, to create a more substantial cricket entity, which could eventually become a publicly traded entity.
However, it’s important to note that not all IPL franchises may pursue this route, as many are already associated with publicly listed parent companies. For instance, Mumbai Indians, Sunrisers Hyderabad, and Royal Challengers Bangalore are affiliated with Reliance Industries Ltd, Sun TV Network, and United Spirits Ltd, respectively.
The underlying motivation behind these exploratory discussions lies in the desire to unlock the inherent value within IPL franchises, a strategic move facilitated by their recent profitability and expansion into various T20 leagues worldwide.
As the situation evolves, more details are expected to emerge, shedding light on the future financial strategies of IPL team owners.