The Board of Control for Cricket in India’s (BCCI) legal team is yet to complete due diligence on CVC Capital Partners, which recently won a ₹5,625 crore bid for the new IPL franchise in Ahmedabad.
The board’s legal eagles will make their opinion known only after Diwali, according to sources
The BCCI’s decision to award the franchise to CVC has drawn controversy as the Luxembourg-headquartered private equity and investment advisory firm has interests in betting and gambling companies abroad.
Gambling and betting are banned according to Indian laws.
“The formalities haven’t yet been completed, the BCCI legal team is going through it and we are expecting them to revert us post Diwali,” a BCCI official was quoted as saying on Friday.
Also read: ₹12,690 cr! Goenka Group, CVC win bids for Lucknow, Ahmedabad IPL teams
If the BCCI decides to revoke its decision to award the franchise to CVC, then the third best bidder, Adani (₹5,100 crore), will be next in the line to secure it.
Under the ‘portfolio companies’ list on the CVC’s website is Tipico, a sports betting and online gaming company, and Sisal, a betting gaming and payments, consumer/retail company.
CVC has invested in Formula 1 racing, football and rugby. IPL will be its first entry in the Indian cricket market.
On the day CVC won the bid, former IPL commissioner Lalit Modi had questioned the BCCI’s decision.
“I guess betting companies can buy an IPL team. must be a new rule. Apparently, one qualified bidder also owns a big betting company. what next? does BCCI not do their homework? what can Anti-corruption do in such a case? #cricket,” Modi tweeted.
The IPL has already been marred by a match-fixing scandal in 2013, which eventually saw the Supreme Court to intervene, followed by a complete overhaul of BCCI’s governance structure.
Nine bidders had turned up for two new IPL team auction with some big names like Manchester United too showing interest.
While RPSG clinched the Lucknow franchise with a record bid of ₹7,090 crore, CVC’s was the second highest.