In the latest industry news, Tiger Global, renowned technology-focused investor, is currently in talks to buy a financial stake in the Indian Premier League (IPL) franchise, Rajasthan Royals. Based in New York, the firm plans to invest around $40 million, thereby evaluating the franchise at a whopping $650 million. While the deal is nearing its final stages, the capital influx may either come as a direct investment or support for an existing Rajasthan Royals shareholder.
Emerging Media, the parent company of Rajasthan Royals, is owned by UK entrepreneur Manoj Badale. Badale acquired the franchise rights back in 2008 and now holds over 60% ownership. This anticipated investment by Tiger Global aligns with its ongoing interest in IPL opportunities, as per an Economic Times report.
The involvement of investment firms in professional sports is not entirely new. RedBird Capital, a US-based investment firm, purchased shares in Rajasthan Royals in 2021. The secondary deal valued the franchise above $250 million. Notably, RedBird Capital has investments in renowned sports teams like Major League Baseball’s Boston Red Sox and the English Premier League’s Liverpool football club.
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Tiger Global’s move into the IPL franchise aligns with its earlier investment in Dream Sports, the parent firm of Dream11, a popular online fantasy gaming platform. This reflects the company’s interest in the sports economy, which is increasingly attracting institutional funds from the US, UK, and Europe.
In 2021, UK-based private equity firm, CVC Capital Partners, became the first to buy an IPL team, acquiring Gujarat Titans for a bid of Rs 5,625 crore. The trend of private equity investment in Indian sports franchises is gaining momentum.
A report from D and P Advisory underlined this growth, stating the valuation of IPL franchises reached $10.9 billion in 2022, marking a substantial 75% growth since 2020. This signifies the promising potential and economic value of sports franchises in India.
This news is based on an article from YourStory.