IPL news September 6, 2012

Deccan Chargers franchise up for sale

ESPNcricinfo staff
34

Deccan Chargers, the Hyderabad-based IPL franchise, has been officially put up for sale by its owners Deccan Chronicle Holdings Limited. The sale, announced in a newspaper advertisement on Thursday, will be through a bidding process that will be completed on September 13, with the winning bid announced on the same day.

The franchise, whose owners have been facing financial problems, had approached the Indian board for help and the advertisement says the bid process will take place "under the aegis of the BCCI". The tender notice makes it clear that the franchise will continue to be based in Hyderabad and that the winning bidder will acquire the franchise on an "as is, where is" basis - implying retention of the franchise name - but leaves the possibility of a fresh franchise agreement between the new owner and the BCCI open.

Chargers, which has been reportedly mortgaged to banks, has been under pressure from its lenders to service its debt obligations. The bulk of the winning bid could go towards paying back the debt, with the notice directing the winning party to pay the consideration into a bank account as decided by the lenders. Five percent of the winning amount will have to be paid directly to the BCCI.

Deccan Chronicle had been trying to sell the whole or part of the franchise for some time now, with T Venkattram Reddy, the Deccan Chronicle chairman, telling the Economic Times recently that they were in advanced talks with potential buyers. But the deal reportedly ran into complications with some investors in the franchise asking the board to get involved.

The franchise was bought by Deccan Chronicle for $107 million in the first IPL team auction in 2008. At the time, it was the third-most expensive franchise, after Mumbai Indians and Royal Challengers Bangalore.

Chargers endured a difficult 2012 IPL season, finishing at No.8, above the wooden-spoon holders Pune Warriors. They were led by Kumar Sangakkara and coached by the former Australia batsman Darren Lehmann. The other notable overseas players include Dale Steyn, Cameron White and JP Duminy. They took the IPL title in 2009, when they were led by Adam Gilchrist, but with a different group of players.

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  • Gappistan on September 7, 2012, 11:50 GMT

    @Soofy.. Missing Gayatri Reddy? I believe she is the Unlucky Mascot of the Team. The team was in good form when T. S. Reddy was there and the moment Gayatri reddy started appearing with her makeup box face the team started loosing.

  • ani. on September 7, 2012, 8:21 GMT

    franchises get share from Television rights as per bcci model.. all these stadium revenue, merchandise, sponsors nothing compared to TV revenue.dc's main project DCHL went in to loss .now smart business plan by DC .. during first auction .dc went for.$107 millions .. this time they will get atleast 8 times more money..2010 Pune paid $370 million (approximately Rs 1900 crore) for new franchise..even if DC gets 800 cr - 900 rc thats a good money

  • sweetspot on September 7, 2012, 7:36 GMT

    What??? No more Gayathri Reddy? Terrible! Of course this is all purely business, and if the buyers think they can turn the fortunes of this team around just because they have an opinion on how things must be run, they are in for a rude shock. Apart from CSK, and to some extent MI, the rest don't even seem to know how to build a franchise. KKR are slowly putting their hands up, but there is too much clowning around to build a lasting image.

  • satish619chandar on September 7, 2012, 6:37 GMT

    I guess the RR, KXIP and DD franchises are on pipeline. Their decision will depend on the outcome of this sale. It is purely understandable that the DC owners are short of interest to run through the franchise because of money otherwise they wouldn't have opted to send out Ojha and KP. Atleast, they have a trophy to boast of in the 5 years as owners.

  • soofy on September 7, 2012, 5:04 GMT

    that's mean we will not see GAYATRI REDDY again with deccan

  • Gappistan on September 7, 2012, 4:38 GMT

    Saw in today's paper that Videocon Group is in talks to buy Deccan Chargers, Hope Venugopal Dhoot can bring some changes to the fortunes of this team

  • on September 6, 2012, 19:20 GMT

    Ha Ha good sign for our Team DC and for Hyderabad Local Players too....

  • inswing on September 6, 2012, 16:22 GMT

    Every IPL team is making a significant loss every year, including the one in the biggest market, Mumbai Indians. With the amounts that are being paid to players, it is not possible to make up through advertising and tickets in the short season. Ambani types can continue to take losses for years, but those will less wherewithal will start breaking. Pune, Punjab, Rajasthan are all in danger after Deccan, though Rajasthan has wisely not spent crazy amounts on players.

  • on September 6, 2012, 16:13 GMT

    so whn wil kochi tuskers kerala wil sold or rebid!!!????

  • JohnnyRook on September 6, 2012, 15:45 GMT

    @ superstar100. Mate, Sahara group admitted that they grossly overestimated the Pune team and paid 33% more than they should have. Plus this is an 'everything must go' kind of sale. My guess is that it would be 600-800 crores

  • Gappistan on September 7, 2012, 11:50 GMT

    @Soofy.. Missing Gayatri Reddy? I believe she is the Unlucky Mascot of the Team. The team was in good form when T. S. Reddy was there and the moment Gayatri reddy started appearing with her makeup box face the team started loosing.

  • ani. on September 7, 2012, 8:21 GMT

    franchises get share from Television rights as per bcci model.. all these stadium revenue, merchandise, sponsors nothing compared to TV revenue.dc's main project DCHL went in to loss .now smart business plan by DC .. during first auction .dc went for.$107 millions .. this time they will get atleast 8 times more money..2010 Pune paid $370 million (approximately Rs 1900 crore) for new franchise..even if DC gets 800 cr - 900 rc thats a good money

  • sweetspot on September 7, 2012, 7:36 GMT

    What??? No more Gayathri Reddy? Terrible! Of course this is all purely business, and if the buyers think they can turn the fortunes of this team around just because they have an opinion on how things must be run, they are in for a rude shock. Apart from CSK, and to some extent MI, the rest don't even seem to know how to build a franchise. KKR are slowly putting their hands up, but there is too much clowning around to build a lasting image.

  • satish619chandar on September 7, 2012, 6:37 GMT

    I guess the RR, KXIP and DD franchises are on pipeline. Their decision will depend on the outcome of this sale. It is purely understandable that the DC owners are short of interest to run through the franchise because of money otherwise they wouldn't have opted to send out Ojha and KP. Atleast, they have a trophy to boast of in the 5 years as owners.

  • soofy on September 7, 2012, 5:04 GMT

    that's mean we will not see GAYATRI REDDY again with deccan

  • Gappistan on September 7, 2012, 4:38 GMT

    Saw in today's paper that Videocon Group is in talks to buy Deccan Chargers, Hope Venugopal Dhoot can bring some changes to the fortunes of this team

  • on September 6, 2012, 19:20 GMT

    Ha Ha good sign for our Team DC and for Hyderabad Local Players too....

  • inswing on September 6, 2012, 16:22 GMT

    Every IPL team is making a significant loss every year, including the one in the biggest market, Mumbai Indians. With the amounts that are being paid to players, it is not possible to make up through advertising and tickets in the short season. Ambani types can continue to take losses for years, but those will less wherewithal will start breaking. Pune, Punjab, Rajasthan are all in danger after Deccan, though Rajasthan has wisely not spent crazy amounts on players.

  • on September 6, 2012, 16:13 GMT

    so whn wil kochi tuskers kerala wil sold or rebid!!!????

  • JohnnyRook on September 6, 2012, 15:45 GMT

    @ superstar100. Mate, Sahara group admitted that they grossly overestimated the Pune team and paid 33% more than they should have. Plus this is an 'everything must go' kind of sale. My guess is that it would be 600-800 crores

  • dicky_boy on September 6, 2012, 15:37 GMT

    I FEEL REALLY HAPPY THAT OUR TEAM WILL GET BETTER OWNERS, THE PREVIOUS OWNERS SOLD PIETERSEN AND OJHA AND I GUESS COMPLETELY SPOILED OUR TEAM, OUR ONLY HOPE SAEED AJMAL

  • sumit176 on September 6, 2012, 14:52 GMT

    @bilal shahid,,bro ..plzz tell ur actress meera to buy deccan charger so that we wont miss gayatri reddy

  • on September 6, 2012, 14:48 GMT

    Some of the comments give me the feeling that they are NOT realizing, that it is all business.

  • on September 6, 2012, 14:46 GMT

    If the kind of player payment continues unabated, and with the increasing greed of BCCI (even on a distress sale, they want a 5% commission), the economic viability of most of the franchisees look questionable. Now: Deccan. There may be more in the queue. Bangalore? Jaipur? Delhi? (Mumbai & Pune may exist because of the deeper pockets of the groups). I have no clue on the cement guy. Owners' ego may continue to prop up Kolkatta. These are hazardous guesses. But one thing is sure. It all depends on the Indian Consumer. The whole economic edifice ultimately rests on Ad revenues; not ticket sales. All the firms who spend Ad money recover it from the consumers thru MRP. Almost all of the advertisers are Indian companies. So, inevitably Indian consumers pay for the IPL. IF, a big if, viewer fatigue sets in, anything can happen. Keep your fingers crossed. (Incidentally, make a guess who ultimately pays most for running the SLPL? Clue: Look at the owners AND Advertisers)

  • on September 6, 2012, 13:02 GMT

    If its going to sale............ Than who's gonna be new franchise.....?????

  • superstar100 on September 6, 2012, 12:26 GMT

    @ Sibi Joseph i dont think it will sale at low price we all know PWI and KOCHI team they were sold in around 1800 crores INR .. so my i thnk it will be around 2000 crores INR ..

  • serious-am-i on September 6, 2012, 11:52 GMT

    @sanjaycrickfan: I think u can change your team name if u do u not like it. Its not that they are forced to use this name.

  • on September 6, 2012, 11:41 GMT

    Good days ahead for Deccan Chargers. :) But then, I liked the previous owners as well. They were very decent and modest. I would have liked them even more if they invested more money and ambition along with those qualities into their team. But they don't have the money, and now we will have a richer and more ambitious team owner. Hope they will keep the name unchanged. I love the name and the theme song of my team.

  • Sakthiivel on September 6, 2012, 11:27 GMT

    We will miss Gayathri reddy !!! Sad !!!

  • on September 6, 2012, 11:26 GMT

    Take Saeed Ajmal,Ahmad Shehzad, Imran Nazir and Shahid Afridi and just see the result,,,,,Deccan Chargers will be the next champion

  • on September 6, 2012, 11:22 GMT

    include pakistani players and just see the price will touch the sky

  • akbaassu on September 6, 2012, 11:05 GMT

    i,m resdy to buy it for 75million dollars

  • on September 6, 2012, 10:42 GMT

    I do accept with Devatanu Deka. Deccan Chargers is by far the coolest team name in IPL !!

  • on September 6, 2012, 9:35 GMT

    so when will RCB be sold or wound up??

  • on September 6, 2012, 9:26 GMT

    Now we will not be able to see the beautiful owner of DC!!! :(

  • on September 6, 2012, 9:18 GMT

    and my bid is 110 rupess

  • thesunravish on September 6, 2012, 9:11 GMT

    Kapil paa ji u must buy it.

  • thesunravish on September 6, 2012, 9:10 GMT

    I want to buy too, m staring with 1000 Rs.

  • sanjaycrickfan on September 6, 2012, 9:04 GMT

    At least have the name Hyderabad in the team name. How do you expect this team to get any support from the locals if the city name is not mentioned ?

  • ramli on September 6, 2012, 8:13 GMT

    May be someone from Tollywood will acquire DC and take it to even more lower level than before???

  • on September 6, 2012, 8:03 GMT

    Only one doubt, if the owners of DC fails to attract a bid that is higher than the loan amount, what will the confiscate? The players?

  • on September 6, 2012, 8:00 GMT

    I really hope the new owners dont change the franchise name.... Deccan Chargers is by far the coolest named team in the IPL!

  • on September 6, 2012, 7:56 GMT

    Great opportunity to know the real valuation of franchisee teams!

  • on September 6, 2012, 7:51 GMT

    I want to buy I am starting the bid with 100 rs

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  • on September 6, 2012, 7:51 GMT

    I want to buy I am starting the bid with 100 rs

  • on September 6, 2012, 7:56 GMT

    Great opportunity to know the real valuation of franchisee teams!

  • on September 6, 2012, 8:00 GMT

    I really hope the new owners dont change the franchise name.... Deccan Chargers is by far the coolest named team in the IPL!

  • on September 6, 2012, 8:03 GMT

    Only one doubt, if the owners of DC fails to attract a bid that is higher than the loan amount, what will the confiscate? The players?

  • ramli on September 6, 2012, 8:13 GMT

    May be someone from Tollywood will acquire DC and take it to even more lower level than before???

  • sanjaycrickfan on September 6, 2012, 9:04 GMT

    At least have the name Hyderabad in the team name. How do you expect this team to get any support from the locals if the city name is not mentioned ?

  • thesunravish on September 6, 2012, 9:10 GMT

    I want to buy too, m staring with 1000 Rs.

  • thesunravish on September 6, 2012, 9:11 GMT

    Kapil paa ji u must buy it.

  • on September 6, 2012, 9:18 GMT

    and my bid is 110 rupess

  • on September 6, 2012, 9:26 GMT

    Now we will not be able to see the beautiful owner of DC!!! :(