Jump to content
beetle

Lucknow and Ahmedabad...the new ipl teams

Recommended Posts

Private equities aren't in it for the long haul. They don't have a brand either that can use the team as a vehicle for visibility purposes.

 

So yes, the Amdavad franchise would be sold once the investors make a quick buck. They would have set a valuation target to achieve within a certain number of years and once that happens, they'll quietly exit.

 

Here's the thing about businesses run by private equity firms - they are notoriously ruthless when it comes to cost cutting and achieving efficiencies. So I am not sure how big of a spender they would be when it comes to players' auction.

 

Bonus fun fact. Remember the oxygen crises during the last Covid wave few months ago? Private equity firms had a big hand in engineering that fiasco. A lot of private hospitals run by trusts and societies were sold to PE firms over the last decade. The PE run hospitals wound up all the non-essential functions including in-situ oxygen plants at a lot of these hospitals in cost-cutting exercise.

Link to post

https://timesofindia.indiatimes.com/sports/cricket/ipl/top-stories/new-ipl-teams-bcci-expecting-anything-between-rs7k-cr-10k-cr-with-adani-goenka-aurobindo-in-fray/articleshow/87235873.cms

 

Quote

Former India cricketer may join one of the consortium


A former India opener may join one of the consortiums which is expected to be serious bidders for the new franchises.
"Yes, a former India opener is ready to shell out around INR 300 crore and buy a minority stake if the consortium he is part of is able to successfully bid for a new team. He comes from a business family and he does want to invest in a cricket team.
"He is a distinguished player in his own right and also understands how the franchisee universe works," the BCCI source said.

Any idea who is this cricketer? Is it Gavaskar, Tendullkar or Ganguly?

Link to post
28 minutes ago, sarchasm said:

Private equities aren't in it for the long haul. They don't have a brand either that can use the team as a vehicle for visibility purposes.

 

So yes, the Amdavad franchise would be sold once the investors make a quick buck. They would have set a valuation target to achieve within a certain number of years and once that happens, they'll quietly exit.

 

Here's the thing about businesses run by private equity firms - they are notoriously ruthless when it comes to cost cutting and achieving efficiencies. So I am not sure how big of a spender they would be when it comes to players' auction.

 

Bonus fun fact. Remember the oxygen crises during the last Covid wave few months ago? Private equity firms had a big hand in engineering that fiasco. A lot of private hospitals run by trusts and societies were sold to PE firms over the last decade. The PE run hospitals wound up all the non-essential functions including in-situ oxygen plants at a lot of these hospitals in cost-cutting exercise.

Not to forget the classic case of SIlverLine acquiring a stake worth a few hundred million dollars in the All Blacks Rugby team and trying to monetise the Haka! All in the name of commercialising the non-sporting streams of sports franchises. 

 

CVC have had an interesting history with La Liga and had fallen out with Real Madrid.

 

One good thing is PE investments in such sports deals are typically done through evergreen funds (debt renewals in multiple cycles pushing back the maturity dates, a form of capital recycling from realised returns) and not funds which are tied in with return on investments targets. Will not be as cut throat as a typical PE run business.

Link to post
https://timesofindia.indiatimes.com/sports/cricket/ipl/top-stories/new-ipl-teams-bcci-expecting-anything-between-rs7k-cr-10k-cr-with-adani-goenka-aurobindo-in-fray/articleshow/87235873.cms
 
Former India cricketer may join one of the consortium

A former India opener may join one of the consortiums which is expected to be serious bidders for the new franchises.
"Yes, a former India opener is ready to shell out around INR 300 crore and buy a minority stake if the consortium he is part of is able to successfully bid for a new team. He comes from a business family and he does want to invest in a cricket team.
"He is a distinguished player in his own right and also understands how the franchisee universe works," the BCCI source said.
Any idea who is this cricketer? Is it Gavaskar, Tendullkar or Ganguly?
Gambhir.

Sent from my HD1901 using Tapatalk

Link to post
1 hour ago, Banton said:

What is current value of manchaster united/Real madrid?

United valued over $3B. 

 

Daniel Ek made a bid to the Kronke's to buy Arsenal for around $1.8B which was instantly rejected. In an open bid, united would easily attract bid of over $4B.

Edited by Vivek92
Link to post
20 hours ago, sarchasm said:

Private equities aren't in it for the long haul. They don't have a brand either that can use the team as a vehicle for visibility purposes.

 

So yes, the Amdavad franchise would be sold once the investors make a quick buck. They would have set a valuation target to achieve within a certain number of years and once that happens, they'll quietly exit.

 

Here's the thing about businesses run by private equity firms - they are notoriously ruthless when it comes to cost cutting and achieving efficiencies. So I am not sure how big of a spender they would be when it comes to players' auction.

 

Bonus fun fact. Remember the oxygen crises during the last Covid wave few months ago? Private equity firms had a big hand in engineering that fiasco. A lot of private hospitals run by trusts and societies were sold to PE firms over the last decade. The PE run hospitals wound up all the non-essential functions including in-situ oxygen plants at a lot of these hospitals in cost-cutting exercise.

"educated" Indians have learnt some wrong lessons about capitalism and government involvement, regulation etc due to the frustration over generations of ineffectiveness, corruption, and shitshow by the government.  But there is plenty of danger and harm in letting the pendulum swing the other way too far.  Unregulated 'capitalism' is pure evil, more so than government evil.  In fact 'capitalism' by design requires, and is completely dependent on adequate government regulation and control.  Because the pure profit motive always leads to sub-optimal outcomes for consumers.  

 

But its fashionable in Indian circles to talk about "removing government from business" etc.  @coffee_rules

Link to post
14 minutes ago, sandeep said:

"educated" Indians have learnt some wrong lessons about capitalism and government involvement, regulation etc due to the frustration over generations of ineffectiveness, corruption, and shitshow by the government.  But there is plenty of danger and harm in letting the pendulum swing the other way too far.  Unregulated 'capitalism' is pure evil, more so than government evil.  In fact 'capitalism' by design requires, and is completely dependent on adequate government regulation and control.  Because the pure profit motive always leads to sub-optimal outcomes for consumers.  

 

But its fashionable in Indian circles to talk about "removing government from business" etc.  @coffee_rules


yes, I believe so, especially in  state owned airline business in a cut-throat competitive segment. I never said, let’s cut all regulation. Public money is for welfare, defence,  and infrastructure. PE has to be regulated esp in health services. But in sports/IPL what is so harmful?

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...