RedBird mulls selling stake in IPL team Rajasthan Royals

RedBird Capital Partners is looking to sell its minority stake in Indian Premier League team Rajasthan Royals, as the private equity firm seeks to cash in on the growing popularity of cricket’s most lucrative competition, people familiar said.

RedBird, founded by former Goldman Sachs executive Gerry Cardinale, reportedly paid $37.5 million for 15% of Rajasthan Royals four years ago, valuing the franchise at $250 million.

The firm is looking to double its money with a sale of its stake, said the people, who asked not to be identified discussing private information.


RedBird declined to comment, while Rajasthan Royals officials were unavailable for comment.

Launched in 2008, IPL has gone on to become cricket’s most dominant league with its business valued at $16.4 billion last year, according to a report by investment bank Houlihan Lokey.

RedBird’s move to consider a sale of its Rajasthan Royals stake comes at a time when demand for a piece of cricket teams remains strong globally.

An auction at The Hundred cricket tournament in England this month valued the eight competing teams at £975 million ($1.2 billion), despite the shorter-form competition being less than four years old. Bidders included owners of IPL teams and private equity firms.

Many of the IPL franchises have expanded overseas in recent years, with the Royals brand also competing in the Caribbean as the Barbados Royals and in South Africa under the Paarl Royals banner. Massive revenues from sponsorships, ticket sales and media rights have allowed the franchises to attract star players around the world for hefty salaries.

Rajasthan Royals is majority-owned by Emerging Media Ventures Ltd., a firm managed by venture capital firm Blenheim Chalcot and run by Manoj Badale. Lachlan Murdoch, the chief executive officer of Fox Corp., also holds a small stake.

The team, whose players include England bowler Jofra Archer, won the inaugural tournament in 2008 but hasn’t lifted the trophy since.

RedBird also has an interest in the Red Sox baseball team and Liverpool Football Club through its minority stake in their owner, Fenway Sports Group. It also owns Italian football club AC Milan and is a backer of Formula One team Alpine.