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MUMBAI:
Kalanithi Maran-owned media conglomerate Sun TV Network on
Thursday won the Hyderabad Indian Premier League (IPL) franchise
putting in the highest bid that was 23 per cent more than
the second bid for the same team.
Sun
bid Rs 850.5 million a year while the next bid was for Rs
690.3 million from PVP Ventures, which had earlier bid a whopping
Rs 9.0 billion for buying the sacked, financially-distressed
Hyderabad team Deccan Chargers.
The
earlier Hyderabad franchise owned by Deccan Chronicle Holdings
Ltd (DCHL) still had five years to go under the contract with
Indian Premier League (IPL), when it failed to get a respite
from both the Bombay High Court and the Supreme Court to get
its termination stayed earlier this month.
Sun
will get to own the franchise for a period of five years till
2017 paying Rs 4.25 billion as franchise fee to the Board
of Control for Cricket in India (BCCI).
When
DCHL's Deccan Chargers won the bid for its Hyderabad team
in January 2008, it had committed to pay $107 million (Rs
4.21 billion) over a period of 10 years which worked out to
$10.7 million (Rs 421 million) per year at the rupee-dollar
exchange rate prevalent in January 2008.
From
2018, Sun will own the yet-to-be named franchise in perpetuity
and will pay 20 per cent of the franchise revenue every year
as fee to the BCCI.
According
to an IPL Governing Council member, Sun TV has paid Rs 200
million as performance guarantee and Rs 850.5 million as bank
guarantee for the 2013 when the company will make its IPL
debut.
"Sun
TV Network has won the Hyderabad Franchise for an amount of
Rs 85.05 crores (Rs 855.5 million) per year. This Franchise
fee represents a premium of over a 100 per cent above the
amount paid by DCHL for the Hyderabad Franchise in 2008,"
BCCI secretary Sanjay Jagdale said in a statement.
"The
Sun TV Network bid was substantially higher than the second
bid of PVP Ventures, which was Rs 69.03 crores (Rs 690.3 million),"
he added.
The
IPL Governing Council met earlier today in Mumbai to open
the bids for a new IPL Franchise. The BCCI had on 14 October
invited bids for adding the ninth IPL team after the exit
of Deccan Chargers and had opened up the bidding for any of
the 10 cities including Ahmedabad, Vizag, Hyderabad and Noida.
The response to the bidding was lukewarm as Sun TV and PVP
Ventures were the only two bidders and both bid for Hyderabad.
Sun
will also have the right to sign existing Deccan Chargers
players. The players who are not signed by their existing
franchises will go into the auction pool.
The
franchises have to sign contracts with existing players before
the 31 October deadline.
Also Read: New IPL valuation set by Sun TV to deter deals |
