Why Lucknow? RPSG's Goenka has all the answers for his record IPL bid
The RP-Sanjiv Goenka (RPSG) Group won the bid for the Lucknow franchise for a whopping Rs 7,090 crore on Monday and reopened the doors of IPL for its group founder Sanjiv Goenka, who is a sports enthusiast and an ardent cricket fan.
It isn’t the first time that Goenka has tried his luck in the IPL though. In 2015, he floated a team ‘Rising Pune Supergiant’ when Chennai Super Kings and Rajasthan Royals were suspended for two years following their alleged involvement in a match-fixing scandal. The Pune team, however, got to play only for two seasons and lost the finals in 2017 against Mumbai by a run. The Kolkata-based businessman has since shown the willingness to make a comeback “whenever there would be an opportunity”.
Speaking to a media house after Monday’s results, an elated Goenka said: “This is just the beginning. The real intention is to build a team that can win the tournament. If you recall, Rising Pune Supergiant had lost 2017 final to Mumbai Indians so we have some unfinished business in the IPL.”
About the RP- Sanjiv Goenka Group
It is a multimillionaire business conglomerate founded by Sanjiv Goenka and based in Kolkata. The group started in 2011 and since then has expanded into various segments like power and energy, carbon black manufacturing, retail, IT-enabled services, FMCG, infrastructure etc. CESC Limited, a power company, music label SaReGaMa India Limited and retailer firm Spencer’s are some of the popular brands attached to RPSG. The group has a substantial business presence in Lucknow, which will be the base of RPSG’s IPL team.
In other sports, Sanjiv Goenka owns football club ATK- Mohun Bagan, one of the best in the Indian Super League. He also dabbled with a table tennis league.
For the group, it is ‘a good investment’
Sanjeev Goenka told moneycontrol.com: “Rs 7,000 crore is the enterprise value to be paid over in 10 years, the first-year payout is Rs 700 crore. In the same period, I expect to get over Rs 3,500 crore from the Cricket Board.”
Also read: ₹12,690 cr! Goenka Group, CVC win bids for Lucknow, Ahmedabad IPL teams
The business tycoon said it is definitely a good business proposition. “In five years I expect it to be worth Rs 10,000 crore. The Rs 7,000 crore valuation is to go up to Rs 10,000 crore. So, if I’m investing Rs 2,500 crore and in five years it becomes worth Rs 10,000 crore, that’s a pretty good investment,” he added.
Why choose Lucknow?
The RPSG made the highest bid of ₹7,090 crore and chose Lucknow to be their home base. Goenka said he wanted Lucknow as his franchise not just because he has business interests in the region (power plant) but he wants to groom local young cricketers who can make it big in the sport later.
While RPSG got Lucknow, Singapore private equity firm Irelia Company Pte Ltd, whose parent company is CVC Capital Partners, got Ahmedabad for ₹5,625 crore.
Both teams will make their IPL debuts in 2022.
