BeautifulGame Posted May 4, 2015 Posted May 4, 2015 Essel planned to lure Clarke, Warner with $50m contracts: Reports http://m.wisdenindia.com/full-story.php?category=News&id=162190 That's a ridiculously high amount for Clarke/Warner... Subhash Chandra looks very serious this time. Expecting big things and interesting times ahead for cricket. Not really .That's for a ten year period so works out $5 mil an year Both Clarke and Warner make around $4mil already .So will hardly be tempted . Maybe Clarke becoz he is @ end of his career .But then when u are willing to pay that much to Clarke for T20 where he is useless then clearly they r struggling to attract any decent players
Malcolm Merlyn Posted May 4, 2015 Posted May 4, 2015 Need Random Guy or someone else to find out what is the actual profit and revenue of the essel group.Do they have that kind of money to spend?I am not talking paper money here.
randomGuy Posted May 4, 2015 Posted May 4, 2015 Need Random Guy or someone else to find out what is the actual profit and revenue of the essel group.Do they have that kind of money to spend?I am not talking paper money here. Subhash chandra's networth is arnd $4 billion - http://www.forbes.com/profile/subhash-chandra/ Essel group's revenue was $4billion in 2011. (should be $6-8 billion today?) They have a leading TV channel (zee) of their own. All they need is cricketers and stadiums. They have the resources to launch a new league. The thing that matters is the viability. (division of viewership, revenue etc of different leagues)
Malcolm Merlyn Posted May 4, 2015 Posted May 4, 2015 Subhash chandra's networth is arnd $4 billion - http://www.forbes.com/profile/subhash-chandra/ Essel group's revenue was $4billion in 2011. (should be $6-8 billion today?) They have a leading TV channel (zee) of their own. All they need is cricketers and stadiums. They have the resources to launch a new league. The thing that matters is the viability. (division of viewership, revenue etc of different leagues) What is the profitability of that group?It surely isnt in excess of 1bn dollars so do they have the kind of cash flow to fund this? Secondly Chandras worth is linked to his shareholding in the group companies i dont see him selling those shares to fund this venture.
randomGuy Posted May 4, 2015 Posted May 4, 2015 What is the profitability of that group?It surely isnt in excess of 1bn dollars so do they have the kind of cash flow to fund this? Secondly Chandras worth is linked to his shareholding in the group companies i dont see him selling those shares to fund this venture. Essel group holds shares of different group companies. It can sell some shares of some of the group companies to gather some cash. The group can then open another group company for the new cricket league and use the cash obtained from selling shares of other group companies. If they need more cash, they can raise debt or dilute essel group's stake in the new group company launched for the new cricket league.
jalebi_bhai Posted May 4, 2015 Posted May 4, 2015 Subhash chandra's networth is arnd $4 billion - http://www.forbes.com/profile/subhash-chandra/ Essel group's revenue was $4billion in 2011. (should be $6-8 billion today?) They have a leading TV channel (zee) of their own. All they need is cricketers and stadiums. They have the resources to launch a new league. The thing that matters is the viability. (division of viewership, revenue etc of different leagues) Are they trying ICL part 2? Or are they trying to rival ICC?
randomGuy Posted May 4, 2015 Posted May 4, 2015 Are they trying ICL part 2? Or are they trying to rival ICC? seems like ICL part 2 via a rival ICC.:cantstop:
rkt.india Posted May 4, 2015 Posted May 4, 2015 What is the profitability of that group?It surely isnt in excess of 1bn dollars so do they have the kind of cash flow to fund this? Secondly Chandras worth is linked to his shareholding in the group companies i dont see him selling those shares to fund this venture. http://www.esselgroup.com/essel-propack-growth-continues-in-q3-fy15.html
jalebi_bhai Posted May 4, 2015 Posted May 4, 2015 seems like ICL part 2 via a rival ICC.:cantstop: I've heard Lalit Modi will be involved with this rival group. That guy will defo start pumping black money into this venture.
randomGuy Posted May 4, 2015 Posted May 4, 2015 http://www.esselgroup.com/essel-propack-growth-continues-in-q3-fy15.html essel propack is just one of the many companies where essel group has a stake - http://en.wikipedia.org/wiki/Essel_Group#Business_divisions
rkt.india Posted May 4, 2015 Posted May 4, 2015 essel propack is just one of the many companies where essel group has a stake - http://en.wikipedia.org/wiki/Essel_Group#Business_divisions yeah, it is a big group
randomGuy Posted May 4, 2015 Posted May 4, 2015 I've heard Lalit Modi will be involved with this rival group. That guy will defo start pumping black money into this venture. If true, this is a threat for ICC/BCCI.
Malcolm Merlyn Posted May 4, 2015 Posted May 4, 2015 Essel group holds shares of different group companies. It can sell some shares of some of the group companies to gather some cash. You think they will do so?AFAIK the promoters hold around 43% in ZEE entertainment the biggest Essel group company and the share holding is similar in other companies also.So any share sell will take promoter holdings further down and may open him up for a hostile takeover.Most Indian companies have share holding close to 50% so that they control the company,hence this may not be a viable option. The group can then open another group company for the new cricket league and use the cash obtained from selling shares of other group companies. Only if they sell shares and generate enough cash. If they need more cash, they can raise debt or dilute essel group's stake in the new group company launched for the new cricket league. Raise debt on basis of what?The company wont be holding any assets.The only way to raise debt would be via pledging of share of other group companies.Secondly if they dilute stake,how will the stake be valued as the company wont have any revenues to show.
Malcolm Merlyn Posted May 4, 2015 Posted May 4, 2015 If true' date=' this is a threat for ICC/BCCI.[/quote'] He has said he isnt part of it.And he has little influence in cricket now.
Sachin=GOD Posted May 4, 2015 Author Posted May 4, 2015 I've heard Lalit Modi will be involved with this rival group. That guy will defo start pumping black money into this venture. He has apparently refused to be involved because he thinks this is an impossible venture - he thinks you just can't create a parallel cricket setup.
Malcolm Merlyn Posted May 4, 2015 Posted May 4, 2015 essel propack is just one of the many companies where essel group has a stake - http://en.wikipedia.org/wiki/Essel_Group#Business_divisions yeah' date=' it is a big group[/quote'] The question is how much is the profitability of those companies?Is there enough cash flow and value of the shares to take on ICC/BCCI and other boards and possibly their sponsors. The News Corp owned STAR is totally behind BCCI/ICC and will oppose any takeover by ZEE as that will massively hit the profits of STAR.Too many Too big entities involved for Zee to take on.This may have worked in 80s or even 90s.Not now.
randomGuy Posted May 4, 2015 Posted May 4, 2015 You think they will do so?AFAIK the promoters hold around 43% in ZEE entertainment the biggest Essel group company and the share holding is similar in other companies also.So any share sell will take promoter holdings further down and may open him up for a hostile takeover.Most Indian companies have share holding close to 50% so that they control the company,hence this may not be a viable option. Only if they sell shares and generate enough cash. Having promoter <50% stake is quite common. (For hostile takeover, probably the acquirer will have to pay a lot more than what the company is worth?) They may not even sell shares if they already have cash and equivalents (we dont know abt it). Raise debt on basis of what?The company wont be holding any assets.The only way to raise debt would be via pledging of share of other group companies.Secondly if they dilute stake,how will the stake be valued as the company wont have any revenues to show. Good point in bold. Initial investment will be their's, debt can be raised later on. For stake dilution though, they may find a like-minded investor or partner initially itself.
randomGuy Posted May 4, 2015 Posted May 4, 2015 He has apparently refused to be involved because he thinks this is an impossible venture - he thinks you just can't create a parallel cricket setup. This is right thinking imo too.
jalebi_bhai Posted May 4, 2015 Posted May 4, 2015 He has apparently refused to be involved because he thinks this is an impossible venture - he thinks you just can't create a parallel cricket setup. Exactly. He found it incredibly hard to get investment for IPL itself, way back in 2008, and IPL was an officially backed venture. This group is better off picking up another sport. Maybe get in contact with Indian basketball association and NBA and promote basketball.
BeautifulGame Posted May 4, 2015 Posted May 4, 2015 Exactly. He found it incredibly hard to get investment for IPL itself, way back in 2008, and IPL was an officially backed venture. This group is better off picking up another sport. Maybe get in contact with Indian basketball association and NBA and promote basketball. He wants Indian centric cricket content for his sports channels .Doubt promoting Basketball or filling up with NBA content is enough .
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