Cricket News By TODAYLIVESCORE.INFO - 'We've done our math' - Sanjeev Goenka after 7090 Cr bid. Of the Rs 7000 crore, I will probably be paying only Rs 3500 crore in 10 years: Goenka
Of the Rs 7000 crore, I will probably be paying only Rs 3500 crore in 10 years: Goenka
Sanjiv Goenka's bid of Rs 7090 crore for IPL's Lucknow franchise has created quite a buzz in the BCCI and cricketing circles, but the head of RPSG Ventures Ltd., who briefly owned the Pune team (Rising Pune Supergiant), tells Cricbuzz that he had done his math before putting in the winning bid.
Excerpts from the interview…
You seem to have caused quite a stir in the IPL and cricketing world…
That was not the intention. We are hopeful that we can make a difference with our performance. That will be good na?
You won the bids for both Lucknow and Ahmedabad. Why you chose the former?
We have operations in Uttar Pradesh. We do power distribution there. We have a very big presence in the northern state. Closer by in Chandigarh, we have the power distribution rights. So for North India, that becomes like a hinterland.
Have you thought through the business model?
It is simple. You are paying the difference between what you get from the BCCI and what you have to pay to the BCCI. Of the Rs 7000 crore, I will probably be paying only Rs 3500 crore in 10 years. It is because, I will be getting Rs 3500 crore from the BCCI from the broadcast rights. In the next five years, I may get more (from the BCCI). The net present value of that is Rs 2100 crore. That means I have got an IPL team for Rs 2100 crore. Tell me is it good or not?
Many pundits say your numbers don't add up…
I have already told you my mathematics. I don't know what people say. My payout is only Rs 3500 crore. The net present value is only Rs 2100 crore. We have calculated this for a long time.
You were ahead by a distance (close to Rs 1450 crore) from the second placed team (CVC Capital)…
I don't know about that. I can think the way I can think, I can't think the way others think.
You lost the IPL final in 2017 by one run. Does it still rankle?
Wish us well that we do well in future. I am not thinking about how I am going to run the team today. Let me get through this today. From tomorrow, we will start planning.
Was there a call from the BCCI?
Yes. They just called to congratulate me. It was a courtesy call.
Do you have any word on the number of players you can buy outside of the auction?
I have not heard from the BCCI on this as yet.
Have you thought of the name for your team?
No, not yet.