IPL millions are too good to pass up

Teams like the Chennai Super Kings and owners Mumbai Indians are investing in the new T20 league, Cricket South Africa and SuperSport can’t turn down the millions of dollars they want to make, sources say.

That’s why they have made all six franchises available to IPL members with deep pockets and extensive experience with professional sports franchises.

The CSA has confirmed that the six franchise owners in the new league starting next January will be Mumbai-based Reliance Industries (based in Newlands); RPSG Sports Private Limited, owners of Lucknow Super Giants (Kingsmead); Sun TV Network Limited, owners of Hyderabad Sunrisers (St. George’s Park); Chennai Super Kings (Wanderers); Royals Sports Group of Rajasthan (Boland Park) and JSW Sports, co-owners of Delhi Capitals (SuperSport Park).

Read more: Big Money Indian IPL Owners Acquire New SA T20 Teams

And, with the Indian Premier League being the richest cricket tournament in the world, the bids from these six investors have reportedly far surpassed any of the other 20+ odds received by the CSA.

Sources say the average franchise bid was $25 million and no one else could compete with those numbers.

Team owners will pay 10% of this amount per year for 10 years. The CSA receives approximately half of this annual fee of $1.25 million per team per year; and that adds up to $7.5 million a year, which at today’s exchange rate is a whopping R128 million a year.

Not an exaggeration – the domestic cricket will become extinct

It is no exaggeration to say that domestic cricket will die without this additional income allowing the CSA to subsidize their vital pipeline.

In the 10 years that these franchise deals have been in existence, this will be an injection of over a billion rand into South African cricket.

One South African cricket insider called it “crazy money” and given the attractive timezone from an Indian market perspective, the new T20 league should be an international brand in its own right.

It’s believed that Chennai Super Kings offered a hefty $40 million price tag for the Wanderers franchise, probably 10 times more than the top local bidders could afford.

Mandatory local development initiatives, which all bidders were required to have in their bids, are also an attractive prospect for the inside game.

The hope is that these IPL owners will allow the six-stadium-based provincial structures to play an active role in the league, rather than just flying in and taking over premises for a couple of months and then flying out again.

With Indian teams making such a huge investment, could the South African league be the first to benefit from having current Indian players allowed to compete in the tournament in the coming years?

Also read: Graham Smith gets new CSA role to lead T20 league