CVC Capital Partners Considering Sale of Gujarat Titans Stake
Private equity firm CVC Capital Partners is reportedly in discussions to sell a controlling stake in the Indian Premier League (IPL) franchise Gujarat Titans, according to The Economic Times (ET). Business conglomerates Adani Group and Torrent Group are bidding for ownership of the team. While CVC may relinquish control, it is open to retaining a minority share.
Potential Buyers and Valuation
Adani Group and Torrent Group, both previous bidders for the team in 2021, are again in the running to acquire the Titans. Adani Group previously bid I₹5,100 crore (US$610 million) and Torrent Group bid I₹4,653 crore (US$556 million), but both were outbid by CVC, which acquired the franchise for I₹5,625 crore (US$745 million).
Lock-in Period and Future Valuation
Any potential sale of the Titans will have to wait until 2025 due to the Board of Control for Cricket in India (BCCI)’s lock-in period, which prevents new teams from selling stakes before then. The ET reports that the Titans could be valued between US$1 billion and US$1.5 billion, offering a substantial return for CVC.
Adani and Torrent’s Cricket Investments
Adani Group has significantly expanded its cricket portfolio, owning the Gulf Giants in the International League T20 and the Ahmedabad-based franchise in the Women’s Premier League (WPL). Torrent Group, meanwhile, remains a competitive bidder in the IPL landscape.
Financial Performance and Sponsorship Growth
Gujarat Titans’ chief operating officer Arvinder Singh has projected profitability for the team during the next media rights cycle beginning in 2028. The franchise expects sponsorship revenue to grow by 24% year-over-year, reaching I₹90 crore (US$10.8 million).
SportsPro Insights
The IPL has established itself as one of the most valuable sports competitions globally, with a business valuation of US$16.4 billion, according to Houlihan Lokey’s 2024 IPL Valuation Study. For conglomerates like Adani and Torrent, investing in the IPL offers opportunities to enhance brand recognition and capitalize on the league’s growing value and viewership.
CVC’s Future Plans
CVC’s potential sale of its stake in the Titans could yield returns up to double its original investment. The firm may be eyeing its next venture, as it is reportedly in talks with The Big 12 college sports conference for a potential investment worth between US$800 million and US$1 billion.
Conclusion
The possible sale of the Gujarat Titans by CVC Capital Partners highlights the increasing value and attractiveness of IPL franchises to major business conglomerates. As the league continues to grow in viewership and value, the stakes and returns for investors are set to rise accordingly.(online casino)