Modi “surprised” by record IPL bids 23/03/2010 |
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Indian Premier League commissioner Lalit Modi has admitted that even he was surprised at the staggering amount the competition’s two new franchises were sold for – but he insisted that the teams will make a profit.
The Sahara group bought the Pune franchise for $370m, while consortium Rendezvous Sports World bid $333m for Kochi. The cost of the two franchises exceeds the total value of the original eight franchises.
Modi said: "I was indeed a little bit surprised by the amount. Honestly speaking, I thought the winning bid would be $300-320m so it was $40-50m higher than my expectation.
“The bidders must have done their numbers well. We are just two years old and every team that has been run well must be making a profit. If not, they are probably marginally short of it."
Sahara group chief Subrata Roy told the Economic Times that the price was “justified”, but that he was not sure how long it would take the team to break even.
"Right from the Indian Premier League's first match this season, the eyeballs it has got is huge worldwide," he added. "Naturally, the valuations have risen exponentially from what they were three years ago [but] we believe the bid we placed is justified.
“While there will be operating profits from year one, there will be no cash flow. It's difficult to say by when we will break even."
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