Barely a month after Indian Premier League (IPL) champions Rajasthan Royals decided to go public, owners of the struggling Deccan Charges team - Deccan Chronicle Holdings and M Group - have decided to put the franchisee on sale.
A top source close to the owners revealed to TOI of the development saying, "Deccan Chargers is up for sale. The DC Holdings board of directors over the past one week has met, deliberated and decided to disinvest either fully or partly the stake in the franchisee.
"Four to five interested parties have been identified," added the source.
The enterprise value of Deccan Charges is $200m which includes the franchisee fee of $107m to the IPL. "They are looking at some premium and the negotiations are on. Despite their poor show in the inaugural IPL year, Deccan Chargers looks like a good bet given its impressive lineup of players," said the source.
IPL Commissioner Lalit Modi said the IPL governing council had not heard of the move as yet but confirmed any franchisee had the liberty to do so. "They all (the franchisees) are planning to go public or get investors. They can bring in a minority owner or owners, we (the IPL governing council) have no issues with that," he said.
Deccan Chargers have had issues with their team combination and the support staff and had unceremoniously replaced VVS Laxman with Adam Gilchrist as captain recently.
According to the IPL report tabled at BCCI's annual general meeting, the IPL franchise owners have recovered, from central television and sponsorship revenues, close to 80% of the money they paid to the BCCI in the first year of the Twenty20 league.
BCCI raked in Rs 289 crore from the first annual installment of the money the owners bid to buy the rights to own an IPL team. But as part of the revenue-sharing formula they have earned back Rs 224 crore from the central earnings, which was held from April 18 to June 1.
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