The next IPL auction is yet to take place, but a major financial development has created a stir in the league. News concerning the Lucknow Super Giants has grabbed everyone's attention; the Sanjiv Goenka-led RPSG Group is preparing to sell a portion of its stake in the team. If this deal goes through, it will also highlight the team's rising valuation.
Sanjiv Goenka’s Big Revenue Plan: Major IPL Deal Struck Ahead of Auction
According to reports, the RPSG Group is considering selling a stake of approximately 15 to 20 percent in the Lucknow Super Giants. The process of selecting a bank for this deal has already begun. Goldman Sachs is reportedly the frontrunner in the race, although no final decision has been made yet.
The team's valuation could reach $2 billion
According to reports, the RPSG Group aims to value the Lucknow Super Giants at approximately $1.5 billion to $2 billion. Based on this, a 15–20% stake could be valued between $225 million and $400 million. The RPSG Group had acquired the Lucknow franchise in November 2021 for approximately ₹7,090 crore (around $800 million).
Goenka will retain control of the team
It is clear that this is not a deal to sell the entire team. If the deal goes through, the new investor will only be offered a minority stake. This means that primary control of the Lucknow Super Giants will remain with the RPSG Group and Sanjiv Goenka. While the new investor will become a stakeholder in the team, they will not become the full owner of the franchise.
This year has seen significant business deals involving IPL franchises. Royal Challengers Bengaluru was valued at approximately $1.78 billion, while a deal for Rajasthan Royals was struck at a valuation of around $1.65 billion. These deals highlight the rising commercial value of IPL teams.
Finalizing the deal may take time
The process of selling a stake in the Lucknow Super Giants is currently in its early stages. Final decisions regarding bankers and potential investors have yet to be made. Therefore, it would be premature to speculate on who might acquire the stake. If the deal is finalized, the RPSG Group could capitalize on the franchise's increased valuation.
