CVC Capital Partners, a private equity firm, won a Rs 5,625 crore bid to become the owners of a new Indian Premier League (IPL) franchise in Ahmedabad. However, it could be stripped off the franchise after reports emerged of the company having links with betting companies.
According to an Indian Express report, a BCCI official said the board’s legal team would take time to complete due diligence on the new owners after it was found that they had investments in betting companies.
A decision on the matter will be taken by the Indian cricket board after Diwali.
“The formalities haven’t yet been completed, the BCCI legal team is going through it and we are expecting them to revert post Diwali,” a BCCI official told the Indian Express.
“The BCCI has full rights on whom they will allow the team, it’s the board’s discretion and we can only decide on a new IPL franchise (CVC Capital Partners) when the legal team reverts,” the official added.
Should the BCCI decide against CVC Capital Partners, (GAUTAM?) Adani, the third highest bidder (Rs 5,100 crore) will secure the franchise.
On its website, under ‘portfolio companies’, CVC Capital Partners lists Tipico, a sports betting and online gaming company. Along with this, it has Sisal, a betting, gaming and payments company.
CVC Capital Partners has yet to comment on the issue. Other than cricket, it has investments in Formula 1 racing, football and rugby.
“The BCCI is pleased to announce the following successful bidders (subject to definitive documentation and other formalities being completed),” the Indian cricket board had said in a press release.
On the day when the winning bids and companies were announced, Lalit Modi, former IPL Commissioner, questioned the BCCI’s decision to allow betting companies into the cash-rich league.
“I guess betting companies can buy an IPL team. Must be a new rule. Apparently, one qualified bidder also owns a big betting company. What next? Does BCCI not do their homework? What can anti-corruption do in such a case? #cricket,” Modi tweeted.
