IPL news

Sun TV wins Hyderabad IPL franchise

ESPNcricinfo staff

October 25, 2012

Comments: 107 | Text size: A | A

Kumar Sangakkara underwhelming season continued, Kings XI Punjab v Deccan Chargers, IPL, Mohali, May 13, 2012
Deccan Chargers' players like Kumar Sangakkara have to negotiate a deal with the new franchise owners by the end of the month © AFP
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The Sun TV network has won the Hyderabad franchise of the IPL, bidding Rs 85.05 crores per year (around $15.9m) for a five-year deal. The decision was announced after a meeting of the IPL's governing council in Mumbai on Thursday, and a week after Deccan Chargers, the original Hyderabad franchise, was terminated after failing to meet the deadline for raising its bank guarantee.

The other bidder for the franchise was PVP Ventures, who offered Rs 69.03 crores per year (around $12.9m). This was the second time PVP tried to buy the franchise, having failed last month as well with a bid of Rs 900 crores ($164m) for ten years.

In all, four firms had bought the tender document. Besides Sun TV Network and PVP Ventures, Jaypee Group and Videocon had bought the document but didn't submit the bid.

The IPL Governing Council has also taken a decision on future of the cricketers on the Chargers' roster which included high-profile names like Sri Lanka's Kumar Sangakkara and South Africa's Dale Steyn. ESPNcricinfo has learnt that the BCCI has offered Sun TV time till the end of the month to sign contracts with those Chargers' players they would like to retain. The players who do not reach an agreement with the franchise will become free agents, going into the pool for next year's auction along with other capped players.

Sun TV Networks Limited, which is headquartered in Chennai, is one of India's biggest television networks with 32 TV channels and 45 FM radio stations primarily catering to an audience in the four southern languages of India. Their network includes channels covering news, entertainment, film, documentary and music.

The winning bid from Sun TV (about $79.5m for five years) is higher than the $107m for ten years the previous owners of the Hyderabad franchise, Deccan Chargers Holdings Limited (DCHL), paid back in 2008, when the league was being established. "This Franchise fee represents a premium of over a 100 % above the amount paid by DCHL for the Hyderabad Franchise in 2008," the BCCI said in a release announcing the sale of the new franchise.

Sun TV's bid price, which totals $80m or Rs 425.2 crores for five years is however, considerably less than what emerged during the last round of bidding for new franchises two years ago. In 2010, the Sahara group offered to buy the Pune franchise at $370m for ten years. In dollar terms, Sahara's deal over five years adds up to $185m.

In an attempt to draw more bidders, the base price for the franchise had been lowered to about $56m (about Rs 300 crore) for five years, compared to the base price of $225m for ten years in 2010, when the Pune and Kochi franchises were bought.

Chargers were initially terminated from the IPL last month after the BCCI claimed claiming defaults of payments to players, foreign boards and its possible "deleterious" effects on the league. A legal battle followed, with the BCCI winning last week, and then inviting bids for a new franchise. The board had previously agreed to help DHCL sell off the franchise, but had attracted only one bid which was rejected.

© ESPN Sports Media Ltd.

Posted by ProdigyA on (October 26, 2012, 17:11 GMT)

its a shame that so many multi-billionaires from AP did not even bid. its not that they r short of cash may be just dont have guts to take the risk. anyway no prob, i like gemini tv too.

Posted by kunalmailid on (October 26, 2012, 11:06 GMT)

hyderabad nawabs would be the best name

Posted by   on (October 26, 2012, 10:41 GMT)

Players to get next season Chris Moris,Ballance,Rohith Motwani,Rishi Dhawan,Jalaj Saxena,De Cock,Abdul Rassak

Posted by   on (October 26, 2012, 5:59 GMT)

will they LIVE telecast Deccan Chargers matches on SUN tv??????

Posted by sweetspot on (October 26, 2012, 5:15 GMT)

Sun TV will be clever enough to leave all the political overtones out of this venture, just watch. And what's up with people having problems with two owners from the same state? It is all about the "winning bid", so who cares who wins? This is not some government regulated licensed quota. Welcome to the free market.

Posted by johnathonjosephs on (October 26, 2012, 2:21 GMT)

I like how a chennai tv station has bought a hyderabad based cricket team

Posted by   on (October 26, 2012, 1:14 GMT)

Guys, Kalanidhi Maran and N. Srinivasan are next-street neighbors at Boat Club Road, Chennai..

Posted by bgshankar on (October 25, 2012, 22:48 GMT)

How about a new name Sun Chargers!! ;)

Posted by   on (October 25, 2012, 21:52 GMT)

boringgggggggggggggggg!!!

Posted by   on (October 25, 2012, 20:49 GMT)

who cares i completly lost intrest in ipl as indian players show more intrest in ipl than playing for india best example sehwag have u ever seen him play in t20 with sr 110 and scoring 50+ score for india in t20 je will throw his wicket away with in 15 balls

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