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Money Power - The growth of IPL franchises from Rs 502cr to Rs 7090cr – A rise of over 1,400 percent in 13 years
The year 2008 will always be remembered for revolutionizing cricket in India. Already a rich sport in the country, cricket got a new avatar in the form of Indian Premier League, popularly known as IPL, and since then its money graph is going vertical.
The first edition of a cash-rich franchise based cricket league (IPL) was held in 2008. In the first year there were eight teams and the costliest franchise was bought by Mukesh Ambani & Reliance Industries (Mumbai Indians) for Rs 839.58 crore (calculations have been done keeping the current value of US Dollar), while the minimum successful bid for a franchise was for Rs 502.70 crore (Rajasthan Royals by Emerging Media-Led consortium).
In 2008, the successful biddings of eight franchises collectively raised Rs 5429 crore.
On October 25, 2021, two more franchises were added, making it a 10-team affair in 2022.
The Sanjiv Goenka-led RPSG Group has clinched the franchise of Lucknow at a price of Rs 7,090 crore – over 1400 percent growth in comparison to a minimum successful bid for a franchise in 2008.
Private equity firm CVC Capital Partners has won the bid for Ahmedabad at Rs 5,625 crore.
The prize money for the IPL winner in the 2008 edition was Rs 4.8 crore, while in the current edition (2021), the winners got a cheque of Rs 20 crore.
"The new franchises will participate in IPL from 2022 season onwards subject to the bidders completing the post-bid formalities as specified in the ITT document," stated Board of Control for Cricket in India (BCCI) in a press release.
The Adani Group also participated in the teams' auction, but lost out in the bidding process.