One of America’s most prolific sports investors, New York-based Redbird Capital Partners, founded by former Goldman Sachs executive Gerry Cardinale, will take a 15% stake in the Indian Premier League (IPL)’s Rajasthan Royals, giving the cricket team more attaches more importance to. $250 million, in the latest example of US groups investing in fast-growing global franchises.
Manoj Badale, the investment vehicle of London-based venture capitalist Emerging Media, and Redbird Capital Partners announced a strategic partnership on Thursday, with Redbird acquiring a minority stake in the franchise without disclosing the size of the deal.
However, the Financial Times quoted sources as saying that the deal cost Rajasthan Royals between $250 million and $300 million.
In an official release posted by Rajasthan Royals, Gerry Cardinale, Founder and Managing Partner, Redbird said, “The IPL is a dynamic league with a forward-thinking mindset around a global audience and fan and player engagement.”
Emerging Media will increase its ownership of the franchise from 51 to 65%.
“We are extremely pleased to partner with Redbird, a seasoned investment firm, who shares our vision of driving growth and success for the Rajasthan Royals franchise. Such an investment will enhance IPL’s global position and India as an attractive investment destination. is a testament to that, said Manoj Badale, founder of Emerging Media and majority owner of Rajasthan Royals.
Shane Warne led the Royals to the IPL title in their inaugural season in 2008. The team finished eighth in the 2020 edition of the league with six wins from fourteen matches. In the 2021 edition, the team finished fifth with three wins from seven matches before the tournament was halted due to the rising number of COVID-19 cases.
Rajasthan Royals Chairman Ranjit Barthakur said, “We are extremely proud to announce this additional investment from our longtime investor Emerging Media and establish a significant association with our new partner, Redbird.
Other current shareholders of Rajasthan Royals include Rupert Murdoch’s son Lachlan Murdoch and Fox Corporation’s chief executive officer.
The television and digital rights to the tournament, which runs for about two months during a regular window in April-May, were bought by Star Sports for Rs 16348 crore ($2.20 billion) over five years from 2018 to 2022.
IPL’s financials were hit last year by the COVID-19 pandemic, which forced India’s cricket board to stage the event in the United Arab Emirates (UAE).
The brand value of IPL fell 3.6% to $6.19 billion last year due to the pandemic, according to financial consulting firm Duff & Phelps.
The Redbird transaction is the most recent example of private-equity firms actively looking to invest in sports teams.
Redbirds recently acquired a minority stake in Fenway Sports Group, which owns English football team Liverpool, baseball’s Red Sox, XFL, and majority owner of French football team Toulouse.
Prior to founding Redbird, Gerry spent 20 years at Goldman Sachs as a partner and senior leader in the private equity investment business of Merchant Bank.
Gerry serves on the boards of YES Network, which RedBird recently re-acquired, Yankee Global Enterprises (YGE), and OneTeam Partners, a collaboration between the NFL Players Association (NFLPA) and the MLB Players Association (MLBPA). is.
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