The consortium comprising high-profile sports investors based in the USA, which had made the highest bid to buy Rajasthan Royals (RR) as well as the franchise’s other teams – Paarl Royals in the SA20 and Barbados Royals in the CPL – in March, has said it is “both surprising and disappointing” to see the deal going to another consortium, helmed by Indian-origin businessman Lakshmi Mittal.
On Sunday, it was announced that Mittal, along with Adar Poonawalla, another prominent Indian businessman, had bought the Royals franchise for US$1.65 billion (INR 15,660 crore approx.), which topped the $1.635 billion bid of the USA-based investors.
In a statement issued on Tuesday, the USA-based consortium, led by the Arizona-based tech entrepreneur Kal Somani and including owners of two franchises in US-based NFL – Rob Walton (Denver Broncos) and Michael Hamp, son of Sheila Ford Hamp, who owns Detroit Lions – said the decision by the Royals board to grant the franchise ownership to another consortium did not “reflect a level-playing field”.
It is understood that the Somani-led consortium had made the top bids across four rounds of bidding, pipping several rivals including Mittal, who contested independently at the time and is believed to have made a highest bid of $1.1 billion.
“We do not believe the outcome ultimately reflected a level-playing field, and it is difficult to reconcile the strength of our bid and preparedness to close with the final decision”
“We are deeply disappointed not to be part of the Rajasthan Royals ownership group, following a long six-month process in which we were the lead bid from start to finish,” the consortium said in the statement. “Our consortium worked tirelessly to assemble a distinguished group of investors, with ownership experience across the NFL, MLB, EPL, La Liga and TGL. Included in the group were select global superstars from the top tiers of professional sports. We were all motivated by the opportunity to help take the IPL to new international heights.”
It is understood that the final decision was arrived at by the Royals board over the weekend (May 2-3).
Somani, who is part of the existing Royals board, which he joined in 2021 after coming in as an investor, is understood to have recused himself from the board meeting as he was a buyer. It is understood that his consortium met Royals’ existing principal owner, Manoj Badale, in London to finalise the details.
As to why the Royals board decided to pick one consortium over another remains unclear. ESPNcricinfo sent a query to clarify the matter to Badale on May 3, but he hasn’t responded.
The Somani-led consortium rejected speculation that it had “withdrawn” its bid and did not have enough funds.
“Throughout the process, we were the strongest group at every stage, competing against some of the most prominent investors across the sports investing landscape,” the statement said. “Contrary to stories that have been planted in the press, our group was and has always been fully funded, prepared to close with certainty, and never withdrew our bid. We had executed documentation in place and were told that the franchise’s board meeting on Saturday was held to approve our consortium. In the end, this was never the case.
“We approached this process with the highest standards of honesty, integrity, professionalism and in good faith, but unfortunately that wasn’t enough. We do not believe the outcome ultimately reflected a level-playing field, and it is difficult to reconcile the strength of our bid and preparedness to close with the final decision.”
The Somani-led consortium pointed out while it welcomed “competitive outcomes”, it also believed “processes of this significance should be conducted with transparency, consistency, integrity and in good faith”, adding that “while this outcome is both surprising and disappointing, we view this experience as part of a broader journey”.
Once the requisite permissions are granted, including from the BCCI, the new Royals board is expected to come into existence in the third quarter of 2026. The new board will be led by Mittal, his son Aditya, daughter Vanisha Mittal-Bhatia, Poonawalla and Badale, who has a minority stake.
