Lakshmi Mittal and Adar Poonawalla-led group have agreed to acquire the Indian Premier League (IPL) franchise Rajasthan Royals for a staggering $1.65 billion, according to sources familiar with the matter. The deal marks one of the largest transactions in cricket franchise history, underscoring the soaring valuation of IPL teams.
Ownership Structure
Under the proposed ownership structure, Lakshmi Mittal, the steel magnate and chairman of ArcelorMittal, will hold approximately 75% of the franchise along with his family. Adar Poonawalla, chief executive officer of Serum Institute of India, is set to own around 18% of the team. The remaining stake is expected to be held by other investors, including existing minority shareholders.
Strategic Rationale
The acquisition reflects the growing appeal of IPL franchises as lucrative assets, driven by surging media rights deals, sponsorship revenues, and expanding fan bases. For Mittal, the move expands his sports portfolio, which already includes investments in Formula One and football. Poonawalla, whose company is the world's largest vaccine manufacturer, sees the investment as a strategic diversification into sports entertainment.
Rajasthan Royals, the inaugural IPL champions in 2008, have been valued at $1.65 billion, a significant increase from previous valuations. The franchise has a strong brand presence in Rajasthan and a loyal fan following, despite not winning another title since their maiden triumph.
Industry Impact
This deal is expected to further boost the IPL's financial ecosystem, encouraging more high-net-worth individuals and corporate groups to invest in cricket franchises. The league's valuation has grown exponentially, with the latest media rights deal fetching over $6 billion for the 2023-2027 cycle.
Both Mittal and Poonawalla bring deep pockets and business acumen, likely to enhance the team's performance and commercial operations. The transaction is subject to approval from the Board of Control for Cricket in India (BCCI) and other regulatory clearances.
Rajasthan Royals have not yet officially commented on the development. The deal is expected to close in the coming months, with the new owners taking over operations for the next IPL season.
