American investors have taken a big step into Indian cricket, with two separate billion-dollar deals being struck on the same day for teams in the country’s most popular sports league.
No team in the Indian Premier League – one of Asia’s most watched sporting events – had ever been sold for more than US$1 billion until a consortium backed by American businessmen Kal Somani and Rob Walton – the former chairman of Walmart – agreed on Tuesday to buy the Rajasthan Royals in a deal that Indian media reported costing US$1.63 billion.
The record only lasted for hours, though, as a bigger deal was announced the same day for defending champions Royal Challengers Bengaluru (RCB). The team was bought for US$1.78 billion by another consortium consisting of American billionaire David Blitzer’s Bolt Ventures and American asset manager Blackstone.
The two deals highlight the growing appeal of India’s national pastime among international investors looking to be a part of the most popular sport in the world’s most populous country.
“It’s amazing numbers,” Indian cricketer Sourav Ganguly told reporters. “But good news for Indian cricket and the way forward. I think it’s already as big as the NBA.”
The valuations of the two teams represent a jump from their previous sales in 2008, when liquor baron Vijay Mallya bought RCB for US$111.6 million and Rajasthan sold for US$67 million.
