Mumbai: There’s going to be no immediate Saudi takeover in cricket, certainly not Indian cricket. Thanks, but no thanks. That’s the message that the Board of Control for Cricket in India (BCCI) conveyed to interested suitors. It explains the resolution passed in the BCCI AGM on Sunday in Bengaluru, where the commitment to stay registered as a ‘society’ was reiterated.
“The members unanimously resolved to maintain BCCI’s legal status as a society. The members further resolved that the tournaments of the BCCI, including IPL, shall not be converted to a company,” the resolution said.
The need to pass such a resolution was felt, it is learnt, to quell media reports from last year, that Saudi Arabia had expressed interest to buy a multibillion-dollar stake in the Indian Premier League (IPL).
A Bloomberg report last November had reported that Saudi Arabia was keen to make a $5billion initial investment which would help expand the IPL to outside markets. The report went on to say that the Saudi government was desirous that IPL be turned into a holding company valued at as much as $30 billion, with them holding a significant stake.
The IPL is comfortably the biggest league in cricket with an enterprise value over $10 billion as per recent valuations. The BCCI move comes at a time when there are other cricket boards or their constituents, open to private investment. English county Hampshire announced on Monday that they had sold 100 percent stake to GMR group.
{{/usCountry}}The IPL is comfortably the biggest league in cricket with an enterprise value over $10 billion as per recent valuations. The BCCI move comes at a time when there are other cricket boards or their constituents, open to private investment. English county Hampshire announced on Monday that they had sold 100 percent stake to GMR group.
{{/usCountry}}“When the matter came up for discussion in the meeting, it was unanimously decided that a resolution be passed to protect the long-term interest of the board,” a member who attended the BCCI AGM said.
The BCCI has opened doors to private investment by selling franchise ownership in IPL, but wants no in-house interference.
“Any external entity will pump in money, yes. But once your autonomy is compromised, you lose control,” said another state official who attended the meeting. “It’s not that the BCCI was open to such a possibility. But now that there is a resolution passed, it will also work as a legal safeguard for future.”
Saudi Arabia’s powerful sovereign wealth fund has anchored many of the kingdom’s mega sports investments in football, golf, boxing and other sports. Saudi Arabia are set to host 2034 FIFA World Cup; they are majority owners of Newcastle United FC and spent millions to get superstars Neymar, Karim Benzema and Cristiano Ronaldo to play in the Saudi Pro League.
So far in cricket, Saudi presence is limited to energy company Aramco being one of the leading sponsors for International Cricket Council (ICC) events. Aramco and Saudi tourism had come in as IPL central sponsors in 2023, but did not extend the deal.
Indian board officials say, the resolution to remain a society and not turn into a company would also serve future purpose, if they had to deal with any disputes over tax liabilities.
The BCCI was registered under Act XXI of 1960 at Chennai (Madras) on 28th November 1940 and subsequently registered under the Tamil Nadu Societies Registration Act, 1975, as per the board’s constitution.