RP-Sanjiv Goenka Group owned CESC on Tuesday won a bid to own a team for the next two edition of Indian Premier League cricket matches.
RP-Sanjiv Goenka Group owned CESC on Tuesday won a bid to own a team for the next two edition of Indian Premier League cricket matches. The company has offered to pay Rs 16 crore to BCCI in a reverse auction that concluded on Tuesday, instead of asking for a pie of the central revenue like many other franchise owners do,
In an interview to FE after winning the franchise, group chairman Sanjiv Goenka said the idea behind buying Pune franchise for IPL was because of the rapid growth of sports business in India. The IPL bid would also help his RP-Sanjiv Goenka Group ensure greater brand building exercise and high brand visibility.
The Financial Express: Please explain the process of buying Pune franchise.
Sanjeev Goenka: We bid an amount of negative Rs 16 crore for the Pune franchise, and we have won. It will be for two years 2016 and 2017. I understand that there were more than five contestants. Among the other contestants were Intex, Harsh Goenka, Chettinad Cement and others.
FE: What will be the model of running the franchise?
Goenka: There will be professionals, who will be running the franchise.
FE: Will you float another company to run Pune franchise?
Goenka: That structuring my finance team does.
FE: What will be the revenue and what will be cost for running the franchise?
Goenka: I cannot give the numbers. Revenues will be receipts from the sponsorships, and the cost will be players and the administrations.
FE: What is the idea of buying an IPL team?
Goenka: I do believe that the business of sports is a growing business in India and it should do well as we go along. And buying IPL team will ‘of course’ help the Group enhance brand visibility and develop greater brand building exercise.
FE: Which players have you decided to bid?
Goenka: We will decide it next week.