IPL franchise Rajasthan Royals have sold 15% stake from ownership to RedBird Capital Partners for an undisclosed amount. The Rajasthan-based IPL team is majority-owned by business tycoon Manoj Badale’s investment firm Emerging Media.
Emerging Media and RedBird confirmed the deal via a joint statement on Thursday. However, the total valuation of this 15% stake is not yet made public. RedBird confirmed in a statement dynamic nature of IPL has attracted the firm to make an investment.
“The IPL is a dynamic league with a global audience and forward-thinking mindset regarding fan and player engagement.”
As per InsideSport, the total valuation of Rajasthan Royals stands at somewhere between $250 million and $300 million. Royals did see a shrink in brand value due to the pandemic, but it can turn out to be an incredibly wise investment in the long run for RedBird.
It is not a surprise to see such kind of overseas investment in the IPL franchises since it is one of the most lucrative sporting tournaments. The growth for IPL could have been even better by this time if the pandemic hadn’t arrived to make a drastic impact on the finances of the tournament.
RedBird continues to make significant headway in sports as they keep adding franchises to their portfolio. They already have a majority stake in Premier League club Liverpool FC. The Merseyside football club is one of the most popular teams in the world. Apart from Liverpool, RedBird has also made an investment in the American Major League Baseball team Boston Red Sox. With Rajasthan Royals, they are also entering the cricket at the very right time.
Rajasthan Royals last won the competition in the very first edition of IPL in 2008. The franchise has not managed to add more titles, but they are one of the few franchises that have invested heavily in young players. Along with improving the brand of the franchise, RedBird will be eyeing to have a big say in making the team successful on the pitch after acquiring this stake.