CVC and Sanjiv Goenka to pay $1.69B for Indian Premier League cricket teams
CVC Capital Partners and billionaire Sanjiv Goenka each agreed to buy new professional cricket franchises in the Indian Premier League, shelling out a total of $1.69 billion, following an auction process.
Why it matters: These prices are very high for nascent clubs, reflecting an era of global sports team values being inflated by excess institutional and individual wealth.
Details: CVC will pay $745 million for an Ahmedabad-based team, while Goenka will put up $945 million for one in Lucknow.
The bottom line: "Investors have been convinced to pay higher prices to buy into the IPL, which was founded in 2008, as it follows the model of American sports where teams are guaranteed places in the competition each season and because of the anticipated growth of its multibillion-dollar media rights deals." — Samuel Agini and Murad Ahmed, FT