The BCCI is Likely To Hold IPL Auction for Two New Teams on October 17
What We Know So Far About the Bidding
Phase two of the VIVO Indian Premier League 2021 in the UAE is just around the corner but this isn’t just what fans are looking forward to knowing more about. Last year, the Board of Control for Cricket in India (BCCI) has confirmed that two new teams will be added to the most popular cricket tournament worldwide. This will then make the next edition of the IPL have a total of 10 squads as participants.
Because of this, fans are not just looking up today’s IPL match odds but are also starting to wonder more about which teams will be added into the tournament’s mix. The BCCI has already made the Invitation to Tender (ITT) purchasable since August 31 and applicants or bidders will only have until October 5 to make the purchase.
The BCCI said in the released statement, “The Governing Council of the IPL invites bids to acquire the right to own and operate 1 (one) of the 2 (two) new teams proposed to be introduced to take part in the Indian Premier League from the IPL 2022 season, through a tender process. Any interested party wishing to submit a bid is required to purchase the ITT.
“However, only those satisfying the eligibility criteria set out in the ITT and subject to the other terms and conditions set out therein shall be eligible to bid. It is clarified that merely purchasing this ITT does not entitle any person to bid.”
There are no details released just yet as to which businesses and organizations have already purchased the ITT. What’s certain, however, is that the venues where the teams could be based include Ahmedabad, Lucknow, and Pune. Because of this, there are reports that business houses in these areas like the Adani group, RPG Sanjeev Goenka group, and Torrent are interested in buying teams for the IPL’s next season.
The BCCI has not yet released any official announcement when the auction for the new teams will be held. However, Cricbuzz reported that it is likely that it will be held on October 17. According to Cricbuzz, the BCCI has already informed the interested parties of three key dates which are September 21 which is until when clarifications can be sought, October 5, which is until when the ITT will be available, and October 17.
Sources in the know of the IPL affairs have confirmed this to PTI. According to the source, "The board is planning to have the bidding on 17th of October and it will be a closed bidding.” This means that there will be no e-auction as initially thought by many.
It makes sense as to why October 17 just may be the date of the auction as this is two days after the 2021 VIVO IPL is completed. However, this is also the day that the ICC T20 World Cup starts. What this could mean is that the auction may then be held in the UAE – possibly in Dubai or Muscat.
What We Know So Far About the Bidding
Aside from the unofficial schedule, people are now talking about the requirements that the BCCI has set for the applicants. BCCI released a statement about this previously and said, “The detailed terms and conditions governing the submission and evaluation of bids including eligibility requirements, the process for submissions of bids, proposed new teams’ rights, and obligations, etc. are contained in the ‘Invitation to Tender’ (“ITT") which will be made available on receipt of payment of a non-refundable fee of INR 10,00,000 (Rupees Ten Lakhs Only) plus any applicable Goods and Services Tax.”
When it comes to financial requirements, the BCCI emphasized that the bidders should have a net worth of at least Rs 2500 crores and a company turnover of Rs 3000 crores. They also said that only up to three businesses will be allowed to form a consortium and one of them should be able to fulfill the financial criteria.
The bidding process will also have two stages which are legal and financial. It is reported that once the legal department is already satisfied with the bidder’s qualifying criteria, the financial bid will then be opened. Parties can bid for two to six cities, marking the value that they are willing to provide for each place.
Once the two teams are already selected, they will have to pay 10 percent of the franchise fee every year for 10 years. They will then be entitled to a revenue share of 50 percent within that period. The teams will also have to pay 20 percent of their income and will be eligible to receive 50 percent of the central pool of revenue every after an IPL season.