BCCI going bidder-friendly to attract IPL franchise investors

After considering a variety of options, the BCCI has finally identified the road ahead for the next two seasons of the IPL at its working committee meeting in Mumbai on Sunday. Bids have been invited for two new teams but they will be in existence only for the next two years. IPL Chairman Rajiv Shukla confirmed the new teams will make way for Chennai Super Kings and Rajasthan Royals when their suspension ends in 2018. Shukla though was noncommittal about whether the IPL will be a 10-team or an eight-team competition from 2018.

"The working committee had made four recommendations, out of which one recommendation has been accepted by the committee," Shukla said. "That the two vacant spots should be auctioned for two years. After two years we will decide whether we should go for two more franchises or we should confine ourselves to eight teams only."

However, given the short-term deals on offer, questions are already being raise over whether investors will be interested although BCCI authorities are confident that they will lay down bidder-friendly conditions to help them recover as much money as they have invested. As an incentive to the bidders, the BCCI is also likely to recommend that 12 players from the suspended franchises be split between the two new teams before the player auction.

While the BCCI statement issued after Sunday's working committee meeting did not elaborate on the specifics of the new bidding process, Shukla said details like the base price for the bids and the cities that can be bid for will be worked out over the next three weeks and finalised at the AGM on November 9.

"The tender document will be prepared and it will be approved in the AGM on November 9. And then the tenders will be released," Shukla said, adding that the bidders will have the final choice on which city they want to represent. "Whoever is the highest bidder will get the franchise and it is up to them to decide which city they prefer."

Ahmedabad, the adopted home of Rajasthan Royals, is out of contention as a host city since the Motera stadium, the home of top-flight cricket in the city, is being renovated. Jaipur, the original home of Royals, is unlikely to be included in the list of eligible cities since the Rajasthan Cricket Association remains suspended by the BCCI. Chennai's fate will depend on the outcome of the Chennai Super Kings owners' litigation against the two-year suspension.

Shukla said that the interest of players from both the suspended franchises "will be protected", but didn't elaborate on it. ESPNcricinfo understands that the players contracted with the two will be put into the annual auction pool after six players from each are allotted to the new owners on the basis of lots. The BCCI feels such a move would ensure balance of the two new teams and ensure star appeal for both to allow the new owners to recover their money in a short period.

The remaining 35-odd players will be put into the auction pool and will be up for grabs for all eight franchises. However, it is understood that the BCCI will ensure that all the players who were on the suspended franchises' roster in 2015 will be available to them once again when the suspension lifts in 2018.

This means that the big auction scheduled for 2017 could be pushed back by a year to 2018, when the two new teams are scheduled to make way for Super Kings and Royals.

While the base price for the franchise bids is being worked out, according to an IPL insider, it will be "much lower" than in 2010 when two new teams were inducted at a high price. "We will try and ensure that the new owners will recover the money they put into the IPL for two teams," he said.

At the inception of IPL, the base price for teams was $50 million. While the ownership was in perpetuity, the franchise fees were fixed for 10 years. In 2010, the base price rose to $225 million for a ten-year period. However, in 2012, when Deccan Chargers was resold to Sun TV's owners for five years, it was sold at Rs 86 crore per year, less than a half of the 2010 base price.