PE firms line up to buy teams in Indian Premier League

NEW DELHI: It’s not only India Inc but also PE firms such as Sequoia Capital and Providence Equity partners which are making a beeline to buy out teams in the newly-formed Indian Premier League(IPL).

Sequoia Capital, a private equity firm, which has invested in Google and Providence Equity, is one of the largest private investment firms specialising in equity investments in media and communications companies globally.

According to sources close to the developments, the Board of Cricket Control of India (BCCI) has received more than 60 Expression of Interest (EoI) from leading PE firms besides multinational companies and heavyweights from India Inc till now.

“We’ve received EoIs from some leading companies such as Reliance, Airtel, Kingfisher and some other individuals. And yes some PE firms have also applied,” a BCCI official told SundayET.

BCCI, which has recently came out with the terms for buying out teams in the proposed league, expects more companies to bid when it releases the intention to tender (ITT) later this month. Though BCCI hasn’t announced the minimum price bid for tenders, it is said that each team will be priced at around $50 mn (Rs 200 crore).

When contacted, Balu Nayar, managing director of IMG India, the sports management company that has devised the league for BCCI, declined to comment on the subject stating; “I’d rather not speculate. We’re likely to receive more such expressions of interest from global players across various segments, and some of them have already been in touch with us. Before we decided on the IPL format, we have had discussions with those instrumental in setting up leagues such as EPL and NBA and that’s why you see global players also joining the fray.”

According to Mr Nayar, besides India Inc, one might also see investment bankers, sports investors (such as those who own teams in the US sporting leagues), sporting associations specially from the Middle-East, and some eminent NRIs and PIOs from around the world bidding for the teams.

Already, there have been indications that Hollywood star Russell Crowe and businessman Peter Holmes, who jointly own the South Sydney Rugby League Club are keen to buy teams in IPL. The Premier league is set to begin in April next year and many international players of repute such as Ricky Ponting, Glenn Mcgrath will compete along with Indian players.