Bangalore, Oct 25: The Board of Control for Cricket in India (BCCI) has found a new owner in Sun TV for the Hyderabad's Indian Premier League (IPL) team. But brand IPL is showing signs of decline as the new owners have acquired the team for half the price which Pune Warriors India was bought in 2010.
Sun TV might be smiling, having secured the Deccan Chargers for Rs 85.05 crores per year. But in contrast, the latest team to join the IPL bandwagon in 2010, Pune, had shelled out Rs 170 crores for one year.
Sahara, owners of Pune Warriors, paid Rs 1,702 crores for 10 years for their IPL team. Now, Sun TV has signed a five-year deal with BCCI for the Hyderabad franchisee for 425.2 crores. Certainly, Sahara and their team won't be happy about this.
From 2010 to date, IPL has been hit by many controversies. During the same year and same time, Kochi Tuskers Kerala came into existence by paying Rs 1,533 crores. However, Kochi is now defunct after the team was terminated by BCCI for breaching terms of agreement.
When Pune and Kochi teams were unveiled, their combined cost was a whopping Rs 3,235 crores. It was more than the previous eight franchisees (announced in 2008) put together. The first eight IPL teams' total cost was Rs 2,853 crores, when auctioned in January 2008.
"The SUN TV Network bid was substantially higher than the second bid of PVP Ventures, which was 69.03 crores," the BCCI said in a media release on Thursday.
"This Franchise fee represents a premium of over a 100 % above the amount paid by DCHL for the Hyderabad Franchise in 2008," it added.
BCCI's claim that it is above 100% in value is, when compared to Hyderabad's existing value in 2008. Then, Deccan Chargers was bought for about Rs 428 crores for 10 years (US $ 107 million). Yes, it is more than 100% since 2008. But in contrast, Pune Warriors is 100% higher in value than Sun TV's bid.
Overall, IPL brand is losing its sheen and the new owners have picked a team at half price of the previous new team which entered the Twenty20 league.
Former chairman of IPL, Lalit Modi questioned BCCI to hand out the team for such a low price. He tweeted (@LalitKModi): "Bcci is trying to gift team to Srini's Pals. Whilst sahara pays 370 million dollars for its Team. This one goes for pennies. How and why ?"
Here is the list of IPL teams with their value when bought
Mumbai Indians $111.9 million or Rs 441 crores (2008)
Royal Challengers Bangalore $111.6 million (2008)
Chennai Super Kings $91 million (2008)
Deccan Chargers $107 million (2008)
Kings XI Punjab $76 million (2008)
Rajasthan Royals $67 million (2008)
Delhi Daredevils $84 million (2008)
Kolkata Knight Riders $75.09 million or Rs 357 crores (2008)
Pune Warriors $370 million or Rs 1,702 crores (2010)
Kochi Tuskers Kerala $333.33 million or Rs 1,533 crores (2010) (now defunct)