Rajasthan Royals sold to consortium of US-based investors for US$1.635 billion

A record sum of about US$1.635 billion (INR 15,290 crore approx.) has been successfully bid by a high-profile group of US-based sports investors to buy Rajasthan Royals (RR).

ESPNcricinfo has learned that the consortium, which is led by Arizona-based tech entrepreneur Kal Somani, also includes owners of two franchises in US-based NFL- Rob Walton (Denver Broncos) and Michael Hamp, son of Sheila Ford Hamp, who owns Detroit Lions.

Somani, who migrated from India to the US, is already one of the existing investors in RR. He is understood to have joined forces with two others to stake complete ownership of RR, winners of the IPL’s inaugural edition in 2008.

In addition to RR in IPL, the Somani-led consortium will also have ownership of all of Royals’ branded teams: Paarl Royals in SA20, and Barbados Royals in the CPL.

The Hamps, along with Walton and Somani, are also part of the ownership group of Motor City Golf Club franchise in Detroit, which is set to join the indoor golf league TGL in 2027, owned by golf greats Tiger Woods and Rory McIlroy.

It is understood that the consortium, led by Somani, emerged as the winner on March 20 after multiple rounds of bidding including more than one final round of binding bids.

It is believed Somani-led consortium outbid rivals, including Manchester Uniter co-owner Avran Glazer who headed Lancer Capital, as well as Capri Group, the Aditya Birla Group, and Times of India Group.

That pair instead joined forces as part of a consortium which on Tuesday was announced as the new owners of Royal Challengers Bengaluru franchise in IPL and WPL.

The reason the Somani-led consortium bid aggressively for RR is because the set of investors, all tech-savvy, believed in the growth potential of IPL allied with the fast growth of India as a global market.

The Somani-led consortium is now engaged in exclusive negotiations with RR’s current owner Manoj Badale to seal the deal. This will be followed by the ratification by BCCI, with talks expected to be closed in next few weeks.

One of the eight original IPL franchises, RR was bought by UK-based Emerging Media, which is owned by Badale, for $67 million in 2008. Back then, one USD equalled INR 40, compared to INR 94 currently. So in rupee terms, the Somani-led consortium bid is 57 times that made in 2008.

Despite being the least-valued franchise in 2008, RR, led by the late Shane Warne, scripted a fairytale triumph in the inaugural edition of the IPL. Last IPL, RR finished ninth with four wins, but that has not had any impact on the valuation of the franchise, which has always been independent of the team’s performance.

In 2009, RR became the first franchise in the IPL to sell a stake when Bollywood actor Shilpa Shetty and her husband Raj Kundra bought an 11.7% stake in the franchise. By 2021, Badale had grown to become the principal investor as the franchise disclosed his stake was by then over 65%.

That was on the back of him getting a host of individual investors on board in a funding drive which included Ian McKinnon (one of the founding partners of TEAM8, a leading sports and entertainment company, and the creator of the Laver Cup), former BT CEO Phil Jansen, FutureLearn and Network International Chairman Ron Kalifa, and Betfair founder Ed Wray, along with set of tech entrepreneurs including Somani, Simer Mayo and Mihir Patel.

Another big-name investor who came onboard in 2021 was RedBird Capital Partners, which has interests in the parent company of Liverpool and the Boston Red Sox, and has a 15% stake in RR. Another big-name investor, and part of the original ownership group, was Lachlan Murdoch, eldest son of media tycoon Rupert Murdoch, who owns Blue Water Estate Ltd.

None of the parties involved, from RR to Somani to the other investors as well as IPL, was available for comment.

The development will not impact RR’s IPL 2026, with the franchise scheduled to play its first three home matches at its second home venue, in Guwahati. RR, who have appointed Riyan Parag as their new captain, will play their first match against five-time champions Chennai Super Kings on March 30. (ESPNcricinfo)