Kal Somani acquires Rajasthan Royals for USD 1.6 billion

Kal Somani, an existing shareholder in the Rajasthan Royals IPL team, has taken over the franchise, acquiring the Jaipur-based outfit for USD 1.63 billion, which is approximately INR 16,290 crore. Times Group, which was also in the fray, finished a close second in the bidding race.

Somani will head a consortium that includes Walmart, and his group has acquired a full 100 percent stake in the Royals - one of the original eight IPL franchises. He is expected to take over the reins after the 2026 season from UK-based Manoj Badale of Emerging Media.

Hailing from Scottsdale, Arizona, Kal Somani, who is in his 50s, has interests in golf apart from cricket. He is one of the founders of Motor City Golf Club, which has an association with golfing legend Tiger Woods. His son, Arjun Somani, is a promising talent on the US junior circuit.Somany's interests range from academics to sport and he is the founder of multiple companies.

"The acquisition of Rajasthan Royals by a Kal Somani-led consortium at $1.63bn reinforces our view that IPL franchises are now valued in the $1.5-2.0bn range, supported by strong media monetisation and rising global investor interest."

The bidding is believed to have concluded on Monday and the winner was finalised then itself. There were multiple bidders and Times Group was one of them. The Board of Control for Cricket in India (BCCI) is still to be made aware of the transaction and as per the IPL franchise agreement, the BCCI has to be paid five per cent of the transacted money which is close to INR 8.1 crore.

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