Sun TV Network, a Chennai-based media house, acquired the new team to replace Deccan Chargers in Hyderabad at an auction conducted by the Indian cricket board on Thursday.
Sun TV produced the winning bid for an annual figure of Rs 85.05 crore, substantially higher than the annual franchise fee of Deccan Chargers (about Rs 42 crore), but virtually half the Rs 170 crore per year paid by Sahara Pune Warriors when they joined the league in 2010.
Sun will have to shell out the amount for five years, which means the new franchise is worth about Rs 425 crore.
The Board of Control for Cricket in India (BCCI), however, strove to hammer home the point that it was a winning deal.“We can’t compare Sahara with the Sun bid. Sahara was a new team and this is a replacement team,” N Srinivasan said.
“Sahara is entitled to 80 per cent central sponsorship, while Sun would be getting only 60 per cent,” the BCCI president pointed out at a suburban five-star hotel.
Almost opposite was the claim of Sun Network, who said that they were happy to be the new entrants for half the market price of an IPL side. “We’re very pleased with the price. It is exactly half of the team sold last,” said SL Narayanan, CFO, Sun Network.
Sun’s bid was about Rs 16 crore higher than the only other bid put up at the auction. Hyderabad-based PVP Ventures placed a bid for
Rs 69.03 crore and accepted defeat with humility. “They are the deserving winners. The conditions were too stiff for us,” said PVP owner Potluri Vara Prasad.
Sun will have to immediately give a performance deposit of Rs 20 crore and submit a bank guarantee of Rs 85 crore in five days. Sun, which owns over 30 television channels in four South Indian states, was comfortable with the conditions.
Sun will name the team in a couple of days during which they might decide on their support staff. The BCCI has handed over all the Deccan Chargers players to the group which has the right to pick and choose from the erstwhile Chargers.
Dale Steyn, Kumar Sangakkara, Cameroon White and JP Duminy will move to the new team. Ishant Sharma, Shikhar Dhawan, Parthiv Patel and Amit Mishra were the top Indians on the DC roaster. “We’re very happy with the players made available to us,” said the Sun official.
After the Deccan Chargers were finally shunted out of the IPL, following a prolonged court battle, a new franchise was necessitated. The BCCI invited tenders which were bought by four parties — Jaypee Group and Videocon besides Sun and PVP. In the end, only two parties were interested in the bidding.