A consortium that had bid to acquire the Indian Premier League (IPL) franchise, Rajasthan Royals, has raised concerns over the transparency of the process after being outbid by a group led by billionaire steel magnate Lakshmi N Mittal.
The consortium, led by techpreneur Kal Somani and business families Walton and Hamp (Rob Walton, Jordan Walton and Michael Hamp), expressed "disappointment" at missing out on ownership despite claiming to have been “the lead bid from start to finish” during the six-month-long process.
“Throughout the process, we were the strongest group at every stage, competing against one of the most prominent investors across the sports investing landscape,” the group said in a joint statement.
The consortium cited its ownership experience across major professional leagues, including the National Football League, Major League Baseball, European football leagues, La Liga, and Tomorrow’s Golf League, featuring top global athletes. Rob Walton is also a stakeholder in Walmart.
Earlier this week, it was announced that a consortium led by Mittal, his son Aditya Mittal, and Serum Institute of India CEO Adar Poonawalla agreed to acquire Rajasthan Royals in a $1.65 billion deal.
The Somani-Walton-Hamp consortium alleged that it had completed all documentation and was “told” that a board meeting held on Saturday would approve its bid.
“In the end, this was never the case. We approached this process with the highest honesty, integrity, professionalism and in good faith, but unfortunately, this wasn't enough,” the statement said.
Post-transaction, Mittal, his son Aditya, daughter Vanisha Mittal-Bhatia, Poonawalla, and existing investor Manoj Badale will join the Rajasthan Royals board.
The Mittal family will own approximately 75% of the franchise, with Poonawalla holding approximately 18% of Rajasthan Royals, which won the inaugural IPL season in 2008.
The deal includes Rajasthan Royals’ men’s IPL team, as well as its sister franchises Paarl Royals in South Africa’s SA20 league and Barbados Royals in the Caribbean Premier League.
The deal is subject to approvals from the Board of Control for Cricket in India (BCCI), the Competition Commission of India, the IPL Governing Council, and other regulatory authorities, and is expected to close next quarter.
