New IPL Team Auction Likely On October 17 Through Closed Bids

Cricket News By TODAYLIVESCORE.INFO - New IPL team auction likely on October 17 through closed bids. The BCCI has made it clear that each bidder should have a net worth of Rs 2500 crores.

New IPL Team Auction Likely On October 17 Through Closed BidsThe BCCI has made it clear that each bidder should have a net worth of Rs 2500 crores.

October 17 could be the big day for the Board of Control for Cricket in India (BCCI) as well as those intending to bid for the two teams of the Indian Premier League (IPL). Given that the D-day is just two days after the IPL final in Dubai and the day the T20 WC kick-starts in Muscat, there may be a chance that the bidding could take place in one of the Middle East cities – Dubai or Muscat. The BCCI is understood to have told the potential bidders that the final date and venue will be intimated later.

Cricbuzz has obtained information that the BCCI has informed the parties of three key dates – September 21, October 5 and October 17. Clarifications can be sought up to September 21, the ITT (Invitation To Tender) document will be available for purchase till October 5 and the auction will be held, most likely, on October 17. It has been confirmed that there is no e-auction and the age-old practice of closed bidding process will be followed.

The number of league matches for each team will be either 14 or 18 with a minimum of seven home and seven away games assured to each franchise. Currently, the league has eight teams and each teams gets to play same, seven home and as many away games. In the revised scenario, there should be nine home and nine away games but due to absence of larger window, it is likely that the BCCI will stick for 14 games while keeping the option of 18 league games in the agreement open. The number of league matches in total could be either 74 or 94, depending on the window available. Next year, when the current cycle of media rights ends, there will be 74 games with all teams getting to play seven home and seven away games in a format of two groups.

Regarding the financial requirements, the BCCI has made it clear that each bidder should have a net worth of Rs 2500 crores and the company has to have a turnover of Rs 3000 crores. In the case of a consortium, the BCCI will allow only three partners and one of them has to fulfil the above criteria of Rs 2500 crore net worth and Rs 3000 crore turnover. As has been reported, the base price is Rs 2000 crore.

There will be two stages for bidding – legal and financial. Once the legal department is satisfied with the bidder's qualifying criteria, the financial bid will be opened. One can bid for two to six cities, marking the value one is willing to provide for each centre. Ahmedabad, Lucknow, Indore, Cuttack, Guwahati and Dharamsala are the cities available for bidding. Needless to mention, two highest bidders will get the teams.

The teams will have to pay 10 percent of franchise fee every year for 10 years and will be entitled for 50 percent revenue share and post the 10-year period, the franchises will have to pay 20 percent of its income and will continue to receive 50 percent of the central pool of revenue after every IPL season.

The BCCI is also silent on the players to be retained by the existing teams. It is understood that the board may allow two retentions and two Right To Match (RTM) cards with a balance struck on the number of Indian and foreign players allowed to be retained. The retention details are expected to be announced in November and the mega auction is likely in January 2022.

Quite a few parties, including some agencies, are believed to have bought the ITT document and one of them is Sanjiv Goenka of the RPSG Group that had previously owned the Pune franchise for two years. Goenka is tipped to buy the Lucknow team.

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