Deccan Chargers players in IPL 2012, under skipper Kumar Sangakkara, will be available to the new franchise owner Sun TV Networks. BCCI president N Srinivasan revealed that all DC players are now with the Sun Group. “All players of Deccan Chargers are available to the new franchise. They have signed agreements and the new owner will have time till October 31, 2012 to decide whom they want to retain.”
He informed that players don’t have to worry about payments. “As far as the player is concerned, their interest is completely protected and have also been paid for the last year.” Srinivasan added: “The original eight franchises had 10-year contracts and five years is left. The revenue sharing formula after 10 years is that you don’t pay a franchise fee but pay 20 per cent of income. This ruling is consistent for all.”
Sun TV Networks bought the Hyderabad franchise for Rs 85.05 crores per year and the purchase price over five years will be Rs 425.25 crores. Deccan Chargers had bought the franchise in 2008 for Rs 428 crores. Sahara Group paid Rs 1702 crores in 2010 to own Pune Warriors.
Talking about franchise valuation, the BCCI president said: “This (Sun TV Network purchase price of Rs 85.05 crores per year for five years) is twice the value of DC. If you take into account the sharing of central rights compared to earlier expansion of franchise, this bid represents a higher value. It is a very good value.”
He added: “Pune Warriors India was different but we tried to become a lot more consistent now. The Pune franchise gets 80 percent of central revenue but from five years onwards, other franchises get 60 percent. There is a difference in the income, you have to factor that in.”
IPL’s latest entrant, Sun TV Network, owned by Kalanidhi Maran, has an extensive media business, with interests in newspaper and television across many states.”It (Sun Group) is a very credible franchise owner who is in the media. They will add a lot of value to the league.”
Speaking about the thinking behind entering IPL, Sun TV Network CFO S L Narayanan pointed out: “It is a great opportunity. The price that we paid is a very attractive price. The last deal was almost at Rs170 crores per annum, we got it for 50 per cent of that transaction price.”
Asked about plans for team formation for IPl 2013, he said: “BCCI has advised us that we could retain the entire team and also have opportunities to get more players. There are outstanding names here like Dale Steyn, Sangakkara, Cameron White, J P Duminy, Shikhar Dhawan and Ishant Sharma. We will decide on team composition and support staff in a few days.”
IPL’s latest owners join the list of major Indian business groups associated with T20 teams. Narayanan said: “This whole thing fits with the theme of media and entertainment. IPL is a great franchise. I think for the foreseeable future, cricket would be the sport of choice for so many Indians. So it fits in with the overall theme of media and entertainment.”
Asked about revenue model estimates if any, done, he quipped: “We have done our maths. It is a very attractive deal. We will create shareholder value. I have no doubt about that in my mind.” Deccan Chargers is history, the name for the new team is awaited. “The team name is something we will decide over the next few days. We don’t have an idea at the moment.”
