Raj Kundra recently opened up about the time he acquired a majority stake in IPL franchise Rajasthan Royals. The businessman revealed that he bought the team as a Valentine's Day gift for his wife, actor Shilpa Shetty.
'Bought it like a Valentine's Day gift'
Speaking to the YouTube channel SMTV, Raj revealed that he acquired his stake in the franchise in 2009. "I bought it like a Valentine's Day gift. I thought Shilpa had the brand value and I am putting in the money. I bought my stake then, but the case is still going on," he said.
During the interaction, Raj shared that when he invested in the IPL team, its valuation was around ₹700 crore. According to him, the franchise is now valued at nearly ₹16,000 crore. Reports at the time stated that Raj had spent around ₹81.9 crore to acquire his stake in Rajasthan Royals.
For the unversed, in 2013, Rajasthan Royals co-owner Raj Kundra was accused of illegal betting during the Indian Premier League (IPL). Following an investigation by the Supreme Court-appointed Justice Lodha Committee, he was banned for life from all cricket-related activities in 2015, while Rajasthan Royals was suspended from the IPL for two seasons (2016 and 2017).
Raj on the betting case
Raj said he was associated with the team for five to six years before he was "accused of betting." Recalling the controversy, he said, "We were then accused of betting and betting is not allowed. Then the team was banned for two years. Some players were banned for fixing and as owners, we were banned for betting. What was that betting? It was like you and me sitting with each other. We would be like, 'Lagi shart? (Want to bet?)' That was the conversation. 'Lagi 500 ki shart? (Want to bet for 500?)'. They said even that is not allowed. And we thought, you are banning us for this? The case is still sub judice with the Supreme Court."
{{/usCountry}}Raj said he was associated with the team for five to six years before he was "accused of betting." Recalling the controversy, he said, "We were then accused of betting and betting is not allowed. Then the team was banned for two years. Some players were banned for fixing and as owners, we were banned for betting. What was that betting? It was like you and me sitting with each other. We would be like, 'Lagi shart? (Want to bet?)' That was the conversation. 'Lagi 500 ki shart? (Want to bet for 500?)'. They said even that is not allowed. And we thought, you are banning us for this? The case is still sub judice with the Supreme Court."
{{/usCountry}}Raj also claimed that he was the only one among the Rajasthan Royals owners who was held responsible in the case.
He further spoke about the business side of the IPL, saying that franchise owners did not make significant profits during the first five to six years of the tournament. According to him, teams either broke even or had to invest additional money to sustain operations.
Explaining how the league's financial model has evolved, Raj said that owners now earn substantially higher revenues. He claimed that nearly 70 percent of a franchise's earnings come from the broadcasting deal, while around 10-15 percent comes from jersey sponsorships and another 10-15 percent from ticket sales. Raj went on to claim that every IPL franchise now earns an annual profit of approximately ₹200-500 crore.
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