IPL news September 6, 2012

Deccan Chargers franchise up for sale

ESPNcricinfo staff

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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  • Shitij 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.

  • cricc 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

  • Senthil 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.

  • Satish 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.

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

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

  • Shitij 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

  • Dummy4 on September 6, 2012, 19:20 GMT

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

  • Rupesh 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.

  • Dummy4 on September 6, 2012, 16:13 GMT

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

  • abhijeet 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

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