New Delhi (India) March 24:In an exciting development for cricket fans, a consortium led by US-based entrepreneur Kal Somani has made headlines by acquiring the IPL franchise Rajasthan Royals for a staggering $1.63 billion, which translates to over Rs 15,000 crore. This marks a record-breaking investment in the history of the IPL. The deal, which is set to be finalized after the IPL 2026 season, saw backing from prominent figures, including American businessman Rob Walton of the Walmart family and the Hamp family.
Who is Kal Somani?
Kal Somani, who has more than 15 years of experience across various industries like ed-tech, artificial intelligence, and sports technology, is based in Scottsdale, Arizona. He has founded several successful ventures, including tech services company IntraEdge and Truyo, and is known for his strong involvement in AI governance initiatives.
He also co-owns the Motor City Golf Club and has invested early in the TGL Golf League and TMRW Sports, showcasing his commitment to the sports industry.
Tough Bidding War
The sale process began last year, with investment bank The Raine Group advising on the transaction. A number of bidders were in the mix, including the Aditya Birla Group and US sports investor David Blitzer, but it was Somani's consortium that ultimately emerged victorious. The bidding closed on Monday, and the final decision was made shortly after.
The current owner of the Rajasthan Royals, Manoj Badale, who is associated with Emerging Media, is expected to hand over the reins after the 2026 season.
BCCI's Cut Explained
Interestingly, the BCCI (Board of Control for Cricket in India) is yet to be notified about this significant transaction. According to IPL charter agreements, they are entitled to a fee of around INR 8.1 crore, which is 5% of the transaction amount.
The current owners have been in discussions to sell 100% of the franchise for the past six months, and the agreement is now officially documented. However, the formal takeover will only occur once the 19th season of the T20 tournament wraps up.