In a late twist to the Rajasthan Royals have been acquired by Indian billionaire businessman Laxmi Mittal along with another prominent Indian businessman Adar Poonawala for US $1.65 billion (INR 15,660 crore approx.). The Mittlal family along with Poonawala are part of consortium which also includes Manoj Badale, the existing principal owner of RR. The deal also includes ownership of Paarl Royals and Barbados Tridents, the two franchises under the Royals brand in SA20 and CPL.
A statement issued by all parties involved in the acquisition on Sunday said the Mittal family had “reached” a “definitive agreement to acquire” the entire RR franchise portfolio from its previous owner Badale and consortium. “Following completion, the Mittal Family will own approximately 75% of Rajasthan Royals, with Adar Poonawalla holding approximately 18%,” the statement said. “The remaining approximately 7% will be held by approved existing investors, including Manoj Badale.”
This usurps the deal worth $1.635 billion (INR 15,290 crore approx.) made with a high-profile group of US-based sports investors to buy RR in March. That bid was made by a consortium led by Arizona-based tech entrepreneur Kal Somani, along with owners of two NFL franchises – Rob Walton (Denver Broncos) and Michael Hamp, son of Sheila Ford Hamp, who owns Detroit Lions.
The Somani-led consortium staked their claim to RR after multiple rounds of bidding, including more than one final round of binding bids, on March 20. They outbid rivals, including Manchester United co-owner Avram Glazer, who headed Lancer Capital, as well as Capri Group, the Aditya Birla Group and the Times of India Group. It could not be confirmed exactly why the Somani-led consortium was unable to proceed and seal the contract. Incidentally, Somani is one of the existing investors in RR having come on board in 2021.
One of the eight original IPL franchises, RR was bought by UK-based Emerging Media, which is owned by Badale, for US $67 million in 2008. Back then, one US$ equalled INR 40 approximately, compared to INR 94.85 currently.
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