IPL news

Deccan Chargers franchise up for sale

ESPNcricinfo staff

September 6, 2012

Comments: 34 | Text size: A | A

Deccan Chargers celebrate the fall of Virender Sehwag, Deccan Chargers v Delhi Daredevils, IPL 2012, Hyderabad
Deccan Chargers should have a new owner on September 13 © AFP
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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.

© ESPN Sports Media Ltd.

Posted by 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.

Posted by 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

Posted by 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.

Posted by 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.

Posted by soofy on (September 7, 2012, 5:04 GMT)

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

Posted by 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

Posted by   on (September 6, 2012, 19:20 GMT)

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

Posted by 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.

Posted by   on (September 6, 2012, 16:13 GMT)

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

Posted by 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

Posted by 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

Posted by 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

Posted by   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.

Posted by   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)

Posted by   on (September 6, 2012, 13:02 GMT)

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

Posted by 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 ..

Posted by 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.

Posted by   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.

Posted by Sakthiivel on (September 6, 2012, 11:27 GMT)

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

Posted by   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

Posted by   on (September 6, 2012, 11:22 GMT)

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

Posted by akbaassu on (September 6, 2012, 11:05 GMT)

i,m resdy to buy it for 75million dollars

Posted by   on (September 6, 2012, 10:42 GMT)

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

Posted by   on (September 6, 2012, 9:35 GMT)

so when will RCB be sold or wound up??

Posted by   on (September 6, 2012, 9:26 GMT)

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

Posted by   on (September 6, 2012, 9:18 GMT)

and my bid is 110 rupess

Posted by thesunravish on (September 6, 2012, 9:11 GMT)

Kapil paa ji u must buy it.

Posted by thesunravish on (September 6, 2012, 9:10 GMT)

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

Posted by 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 ?

Posted by 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???

Posted by   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?

Posted by   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!

Posted by   on (September 6, 2012, 7:56 GMT)

Great opportunity to know the real valuation of franchisee teams!

Posted by   on (September 6, 2012, 7:51 GMT)

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

Comments have now been closed for this article

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