Chennai Super Kings, Rajasthan Royals' Suspension Opens IPL Window for Corporate India Biggies

The Board of Control for Cricket in India (BCCI) went into a huddle following the suspension of Chennai Super Kings and Rajasthan Royals by the Justice RM Lodha panel on Tuesday. A crucial Indian Premier League Governing Council meeting in Mumbai on Sunday will take stock of the situation and discuss the way forward. Corporate India now see a great opportunity to own teams even as former franchises Pune and Kochi see light at the end of the tunnel. (BCCI Mulls Options After Chennai, Rajasthan Suspensions)

The IPL, experts estimate a $4 billion brand value, must have at least eight teams. According to an agreement with tournament broadcasters Sony, a minimum of 60 matches need to be played in any edition. With only six teams in the fray, that target would be impossible. It gets more complex with the format of home and away matches. The possibility of two new teams is high and there will be no shortage of takers.

Pune and Kochi lost their right to own teams due to financial reasons. Pune was owned by the Sahara group, BCCI's former sponsors. Sources say that corporate India is keen to buy teams and word is that the Mittals, Jindals, Dhoots, Adanis and Munjals are keen. (CSK Shares Tank After Suspension)

There is also interest from overseas, particularly from the Johannesburg-based Guptas. As well as computers, the Guptas - worth $22 million annually -- have interests in mining, air travel, energy, technology and media. One of the three brothers, Atul, once owned a A1 GP team in 2005-06. (Breaking: Champions League T20 Scrapped)

There are at least eight bidders who are keen to make a pitch for the two slots. Prominent among them are Sajjan Jindal, UK-based tycoon Lakshmi Mittal, Gautam Adani, Videocon's Venugopal Dhoot, Harsh Goenka of RPG Group and Prasad Potluri of Telangana-based PVP Ventures.

The Jindals are already discussing a takeover of Royal Challengers Bangalore. Current owner Vijay Mallya may lose his stakes. The JSW group, owned by Jindal, already have India's top football team, Bengaluru FC.

However, there is no pressing need for the BCCI to fill up the void immediately. The next IPL will not be played for another eight months at least and there is every possibility that both the Chennai Super Kings and Royals could somehow manage to retain their slots in the cash-rich T20 league. Chennai are already planning to appeal against the suspension.

The BCCI has already said in an official statement that it would "honour and respect the judicial decisions that led to the suspension of two-time champions Chennai and inaugural edition winners Rajasthan." The Lodha-panel was appointed by the Supreme Court and its order is binding on the BCCI. But the teams have the right to appeal.

The IPL has always looked for opportunities to take the tournament to new cities. With Indore, Raipur, Ranchi and Kanpur keen to host IPL matches, there are several options for the BCCI. However, Ahmedabad looks a solid front-runner. The Adanis, close to Prime Minister Narendra Modi, have always wanted a team and this could be the best chance.

Corporates will now await fresh tenders and more importantly, base price to own a team. RPG Group chairman Harsh Goenka has been quoted as saying: "The league remains an interesting investment opportunity. If BCCI auctions a franchise, I will consider it only if the valuations are considerable."

IPL has lost some credibility due to the 2013 fixing and betting scandal. Industry sources say that new teams could be grabbed for less than $ 100 million each. As Sunil Gavaskar said, the IPL will not be hit by the suspensions and will recover from the hiccup. A cleaner tournament may evoke better response for corporate biggies.

Not all is lost for the players. Chennai and Rajasthan cricketers can enter the auction pool again. Each team has a limit of 26 players and a fixed purse. The IPL is pregnant with possibilities.