Deccanís loss is Maranís gain as Sun TV wins IPL team at R85 cr/year

Kalanithi Maran's Sun TV Network Group said on Thursday it had won the bid for the Hyderabad franchise of the Indian Premier League in a contract valued at R85.05 crore per year.

Sun will pay 20% of its income from the franchisee to BCCI in four quarterly instalments, starting 2018.

Sun TV outbid an offer from Hyderabad firm PVP Ventures.

Board of Control for Cricket in India (BCCI) president N Srinivasan observed that the original eight franchises have 10-year contracts of which five years remain. "After 10 years, there is a revenue sharing agreement by which franchisees pay 20% of their income and that's consistent for all IPL teams," he said.

Meanwhile, the Gauhati High Court on Thursday restrained the BCCI from "taking a final decision" on the tender floated on October 14 for selection of new teams for 2013 IPL tourney. However, the court said BCCI may go ahead with the process for selection of teams which would be subject to it final orders.

Earlier in the day, the IPL governing council had met in Mumbai to open bids for the new IPL franchise. BCCI secretary Sanjay Jagdale said in a release: "Sun TV Network has won the Hyderabad franchise for an amount of Rs 85.05 crore per year. This franchise fee represents a premium of over 100% above the amount paid by Deccan Chronicle Holdings (previous owners of the Hyderabad franchise) in 2008. The Sun TV Network bid was substantially higher than the second bid of PVP Ventures, which was Rs 69.03 crore."

"We are running an entertainment business, and cricket naturally comes to us as a logical step. Cricket is possibly the only sport which attracts huge viewership and we will try to utilise the IPL brand image to the maximum wherever possible," VC Unnikrishnan, vice-president (finance), Sun TV told FE.

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