Rajasthan Royals were acquired by a US-based consortium led by Kal Somani for a record-breaking $1.63 billion (approx. Rs 15,300 crore) on Tuesday (March 24). It is now understood that Australian legend Shane Warne, who captained the team in its initial years, will posthumously earn his estate a staggering Rs 460 crore ($48.9 million) from the sale.
Why will Warne earn from the sale?
The massive payout for Warne is the result of what can, in hindsight, be termed a business masterstroke. In 2008, when the league was an unproven concept, Warne was persuaded to come out of retirement to lead the Rajasthan Royals, then the league’s cheapest franchise.
Going beyond a simple salary, Warne struck a unique deal with owner Manoj Badale, securing a 0.75% ownership stake for every season he played for the franchise. In addition, he was given full control as captain, coach and mentor. As Warne played four seasons (2008-2011), his total equity increased to 3%.
In 2019, when the team was valued at $400 million, Warne famously quipped, “3% of $400 million is all right,” predicting the league’s value would only move in one direction.
From $12 Million to Rs 460 crore
With the team now valued at $1.63 billion by Kal Somani’s consortium, that 3% stake has surged dramatically.
The Growth Story
A legacy for the Warne family
Shane Warne passed away in March 2022, leaving his estate to his three children- Jackson, Brooke and Summer. At the time of his death, his net worth was estimated at roughly $20 million.
This single IPL transaction nearly triples that legacy, making Warne the highest-earning player in the history of the league, surpassing even the career earnings of icons like MS Dhoni, Virat Kohli and Rohit Sharma.