Indian ownership league

Updated: 11 April 2010 12:07 IST

The IPL whirligig has attracted a clutch of disparate, but monied individuals to either bag city based franchises or as members of a consortium

Indian ownership league

Mumbai:

The IPL whirligig has attracted a clutch of disparate, but monied individuals to either bag city based franchises individually or as members of a consortium. Many of them are billionaires and ranked in the prestigious Forbes list. While many reckon that the BCCI and Lalit Modi cloned the idea from Subhash Chandra's Indian Cricket League, the reality is that Modi actually invested time, effort and energy into building a spitting image of Major League Baseball (MLB), English Premier League, NBA and NFL; some of the best known city based sporting franchise models.

While opacity dominates the ownership structure of the 10 different franchises (two more having been added recently), some of the managements are clear as daylight. But others, which have multiple owners coming together as a consortium have less clarity on shareholding. But wherever individuals or companies are owners, the owning entity is for most part a fully-owned subsidiary.

Deccan Chargers for instance owned by the listed company Deccan Chronicle Holdings, Delhi Daredevils which is owned by GMR Sports P Ltd in turn part of the listed GMR Ltd. Sunday MiD DAY does the math for you.

Mumbai Indians

Owners' stake: Reliance Industries - 95 %, Anshu Jain - 5%

In the beauty parade that took place on January 24, 2008, Mukesh Ambani's Reliance Industries emerged as the buyer of the Mumbai franchise for USD 111.9 million (Rs 441 crore). The ownership structure works like this -- RIL group firm India Sportswin owns 95 per cent while Deutsche Bank's Anshu Jain owns 5 per cent. Mukesh Ambani's wife Nita is now running the franchise personally.


Royal Challengers
Owner's stake: UB Group undisclosed


Similarly, the high profile liquor baron Dr Vijay Mallya stepped up to the plate and bought the Bengaluru team -- christening it Royal Challengers. The team owned by UB Sports under Mallya's flagship firm UB Group now has his son Siddharth Mallya managing the team. Mallya paid USD 111.6 million for the team.


Rajasthan Royals
Owners' stake: Suresh Chellaram - 44.1 %, Manoj Badale (EM Sporting Holdings) - 32.4 %, Lachlan Murdoch (Blue Water Estate) and Raj Kundra (Kuki Investments) - 23.5%


Emerging Media consortium bought Rajasthan Royals for a bargain basement price of $67 million. Last year, when rumours of Manoj Badale promoted Emerging Media picking up a direct stake of 50.3 per cent in IPL franchise Rajasthan Royals swirled about, Emerging Media was quick to clarify that there was no change whatsoever in the franchise's shareholding pattern. The franchise spokesperson had then said, "There have been reports in a cross section of the media on Emerging Media picking up majority stake in the IPL franchise, Rajasthan Royals.

We wish to clarify that all these reports are completely unfounded and baseless. There has been no change whatsoever in the shareholding pattern of Rajasthan Royals." Rajasthan Royals, the franchise is owned by Jaipur IPL Cricket, wholly owned by Mauritius-based EM Sporting Holdings. It was largely believed that Manoj Badale was the majority owner of the franchise, but as it turned out, the Nigeria NRI Chellaram family (Suresh and Aditya) owned 44.1 per cent in the Mauritius holding company. Badale is a minority partner in the holding company with 32.4 per cent while the balance 23.5 per cent is divided between Blue Water Estate owned by Lachlan Murdoch and Kuki Investments owned by UK based Kundra (Raj) family and Shilpa Shetty.

Rajasthan Royals were the cheapest franchise bought for USD 67 million in 10 equal payments of USD 6.7 million per year for 10 years. When Raj Kundra picked up stake in the franchise, it was valued at USD 140 million. Kundra bought 11.7 per cent stake for USD 15.4 million. Incidentally, Nigeria based NRI Suresh Chellaram is Lalit Modi's brother-in-aw which led to charges of IPL being Indian Pariwar Lague.

Chennai Super Kings
Owners stake: India Cements undisclosed


Prominent south-based industrialist and owner of India Cements N Srinivasan, who is also the BCCI secretary and slated to become its president this September is the owner of Chennai Super Kings. Chennai Super Kings is a fully owned subsidiary of India Cements and in all likelihood as Srinivasan had indicated at a recent analyst meet, CSK will be first off the blocks to list on the stock exchanges next year. Srinivasan was treasurer of the BCCI in 2008.

With valuations of the two new teams at astronomical levels of USD 333.33 million and USD 370 million, the existing eight franchise owners are now in a position to demand more for stakes in their clubs. In any case, there was a three-year lock in period for the eight original franchises, which ends at the conclusion of season 3. They could not sell more than 49 per cent in their clubs.


Kings XI Punjab
Owners stake: Mohit Burman, Karan Paul, Ness Wadia, Preity Zinta undisclosed


Talk is gaining currency that Kings XI Punjab owners Mohit Burman (Dabur), Karan Paul (Apeejay Surendra), Ness Wadia (Bombay Dyeing) and actress Preity Zinta are ready to exit.

Mohit Burman confirmed to this writer that the going price is $300 million, four times the price that the foursome paid in 2008 for the franchise -- USD 76 million. Burman saying that he was bound by a confidentiality agreement added that neither Venugopal Dhoot of Videocon or Pawan Munjal of Hero Honda were the suitors.

Actress Preity Zinta (seen here with Yuvraj Singh) is the famous face behind Kings X1 Punjab, Mohit Burman of Dabur India also has a stake

Tracing the etymology of the franchise ownership, Burman had said that Ness, Karan and himself had grown up together and remained friends for a long time and when the IPL came about, they decided to come together to bid. Mohit's UK based brother Gaurav is Modi's step son-in-law.

Kolkata Knight Riders
Owners' stake: Red Chillies Entertainment undisclosed


SRK or King Khan is the majority owner of Kolkata Knight Riders along with actress Juhi Chawla and her husband Jai Mehta. KKR is vested in SRK's production company Red Chillies Entertainment.

Deccan Chargers
Owners' stake: Deccan Chronicle Holdings undisclosed


T Venkat Ram Reddy, owner of newspaper group Deccan Chronicle Holdings bought the Hyderabad franchise for USD 107 million. Sometime last year, a valuation exercise was conducted which discovered a price of Rs 1,240 crore for the Chargers. This is when top rated media investment management firm Group M came on board by picking up 20 per cent in the team.

Delhi Daredevils
Owners' stake: G Mallikarjun Rao undisclosed


Infrastructure player GMR owned by G Mallikarjun Rao bought the Delhi franchise -- Delhi Daredevils. Naresh Ganaparthi of GMR was the bidder officially. It made eminent sense for GMR was building out Delhi's multi million dollar airport project. GMR Sports is the holding entity of DD. When the 2008 team auctions concluded, Reliance ADAG and Subroto Roy Sahara were seen as number nine and ten in the queue.

When the bids opened for the two additional franchises earlier this year, Subroto Roy's Sahara Adventure Sports outbid favourites Gautam Adani and Venugopal Dhoot's Videocon in conjunction with Saif Ali Khan and Kareena Kapoor with USD 370 million. Subroto Roy's association with Indian cricket is well documented, while the Rendezvous World Sports consortium was a big surprise. Vivek Venugopal (Elite Group), Anchor Switches, Rosy Blue Diamond, Mukesh Patel and Ravi and Sanjay Gaikwad (who between them own 25 per cent and are also involved with UFO Moviez which has the theatrical rights to the IPL) are the official owners, but secret ownership given to a politician, a former Indian captain and a present Indian player created a flutter in the dovecotes recently till all notions were dispelled when they signed a fresh agreement with IPL.

Once these entities list on the stock exchanges and become public limited companies, the levels of transparency will automatically increase and clearer accounts of ownership will become known.

IPL owners

MUMBAI INDIANS
Mukesh Ambani


The eldest son of Dhirubhai Ambani, Mukesh is the chairman, managing director of Reliance Industries.

Anshu Jain
Born in 1963 in Jaipur, Jain is a financier of Indian descent Anshu Jain heads the global markets division at Deutsche Bank.

ROYAL Challengers Bangalore
Vijay Mallya


Mallya also owns Formula One team Force India. He is seen as often on the team sidelines as his son Siddharth, who runs the team. Mallya is known to be ruthless in his dealings. When Bengaluru fared poorly in the first edition of the IPL, Mallya sacked CEO Charu Sharma and director of cricket Martin Crowe, the former New Zealand captain.

RAJASTHAN ROYALS
Manoj Badale


Badale, 43, is a partner in Mauritius based EM Sporting Holdings who own Jaipur IPL Cricket. His company launched India's first cricket based reality show 'Cricket Star' Suresh and Aditya Chellaram are is other partners.

Lachlan Murdoch

Lachlan Murdoch owns Blue Water Estate is the eldest son of media mogul Rupert Murdoch.

He was was born in London and raised in New York where his father owned the New York Post. At the age of 22, Murdoch was appointed general manager of Queensland Newspapers.

Raj Kundra

London-based businessman Raj Kundra was ranked as Britain's 198th richest man, and at 21 Kundra started a fashion company named RK Collections Ltd, which imported luxury clothing to fashion houses in London, including Christian Dior, Joseph & Escada.

Shilpa Shetty

The Bolllywood actress got involved in Rajasthan Royals from the second edition of the Indian Premier League in 2009, the year she married Raj Kundra.

CHENNAI SUPER KINGS
N Srinivasan


He is the owner of India Cements, a company who promotes cricket through their inter-office team in Chennai. Srinivasan is also the Board of Control for Cricket in India secretary after he held the treasurer's post.

KINGS XI PUNJAB
Preity Zinta


Bollywood actress, who was linked with Ness Wadia who belongs to the famous industrialists. A regular at Kings XI matches, she is known to have a hands-on approach in her dealings with the players and support staff. She is the daughter of Durganand Zinta, an officer in the Indian Army. He died in a car accident when Preity was 13.

Mohit Burman

Kolkata born Burman, 42, is a director of Dabur India. He graduated from Richmond College London, in Bachelor of Arts, Business Administration and Economics in May 1989.

Ness Wadia

The son of Nusli Wadia and Maureen Wadia, Ness is the great grandson of Mohammad Ali Jinnah, the founder of Pakistan. Ness co-owns the Punjab team.

Karan Paul

Paul, chairman of the Apeejay Surrendra Group was inducted into the business in 1992 and oversees its financial planning. He also manages the Group's Tea, Shipping and Financial Services divisions.

KOLKATA KNIGHT RIDERS
Shah Rukh Khan


The king of Bollywood is a keen sportsman who even played the lead in hocky flick Chak De! India. SRK's KKR failed to reach the semis of the last two IPLs. He is not seen at all KKR games but when he makes it, the spotlight is never far away.

Juhi Chawla

After being crowned as the winner of the Miss India beauty contest in 1984, Chawla pursued an acting career. She makes the odd appearance at KKR games.

Jai Mehta

Businessman Mehta better known as Mr Juhi Chawla was earlier married to Yash Birla's sister who died in a plane crash in 1991. He is part of the Mehta group which is spread over Africa, India, Canada and USA.

DECCAN CHARGERS
Venkatram Reddy


Reddy is the owner of Deccan Chronicle newspaper, which is based in Hyderabad. Like several team owners, Reddy's presence in the dugout is a given. Equally consistent in terms of presence is his daughter Gayatri.

DELHI DAREDEVILS

Indian billionaire G Mallikarjun Rao
was reported to be interested in taking English Premier League club Liverpool last year for a whopping 450 million pounds. The British media reported then that 59-year-old Rao was worth 4.2 billion pounds.

What is the IPL controversy?

The truth in a newspaper report which said the Kochi franchise gave away 25 per cent of its stakes for free to an unknown party took a beating with Indian Premier League commissioner Lalit Modi as well as the Kochi team spokesperson dismissing the claim the same day. it is learnt that the Kochi franchise has completed all formalities and their papers were submitted to the BCCI office. Hence, the possibility of the franchisee being scrapped is now negligible.

New owner

Subroto Roy is the chairman and Managing Worker of the Sahara Group of companies based in India. The group has diversified into Finance, Real Estate, Media and Entertainment



Topics : Cricket
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