Reports suggest just one new franchise is likely for IPL 2021

Reports suggest just one new franchise is likely for IPL 2021

THE BOARD OF CONTROL FOR CRICKET IN INDIA (BCCI) is likely to add just one new franchise for IPL 2021 according to reports.

Last month, members gave the go-ahead for two potential franchises.

But according to Times of India, just one is likely to be the number of new additions.

According to the report, the entry fee for franchise 10 could be higher, if only one place is made available for 2021 as simultaneous bids could cap the price.

The addition of two teams is also considered too difficult in terms of adjusting the schedule for the competition.

The new IPL rights cycle will begin in 2023 with tendering expected to begin at the end of this year.

Delaying the tenth franchise is understood to be expected to increase value.

The BCCI also expects legal arbitration issues with the Deccan Chargers and Kochi Tuskers to be resolved.

The Chargers were founding members of the tournament but ongoing financial issues resulted in their membership eventually being terminated in 2012 after the BCCI concluded their terms had been violated.

The Tuskers played in just the 2011 season, but also had their membership terminated.

A dispute amongst the franchise owners resulted in a failure to pay the 10% bank guarantee of the franchise fee.

As a result, the BCCI terminated membership.

In 2015, courts ordered the BCCI to pay $77million in compensation, but it was reported the owners would have accepted re-entry into the league instead.

Sunrisers Hyderabad joined the IPL in 2013 following the expulsion of the Deccan Chargers.

On the BCCI decision, industry executives said: “All said, it’s a well-thought move. The BCCI will clearly benefit in the short and long run because it’ll derive better value from the 10th franchise in the future, doesn’t really disturb the ecosystem for now, buys them more time to put their own house in order.”

Reports have previously suggested Ahmedabad could receive the ninth franchise, with the tenth going to Lucknow or Kanpur.

The Adani Group was considered at the time to be favourites to purchase a new franchise.

The cost for a new franchise is expected the be the largest by some distance with a former BBCI official telling the Hindustan Times: “I would be surprised if the valuation of the new franchise, whenever it comes on board, is anything less than Rs 300-400 crores per year”

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