According to reports, the owners of the Rajasthan Royals, have agreed to sell the majority of the franchise to a Kolkata-based business man for $200 million.
However, before the deal can be finalized, The Board Of Control For Cricket In India (BCCI), must authorize the transaction.
If the green light is given by the BCCI, it would be the first sale of an IPL team in the tournament’s five year history.
Founder and promoter of Jain Group of Industries, Mannoj Jain, has agreed to purchase 88.3% of the franchise from three out of four shareholders.
Tresco International, which owns a 44.2% stake, Emerging Media, 32.4% and Blue Water Estate Ltd, with 11.7%, will sell their shares to Jain.
The deal, if allowed to go through, will increase the value of Royals to $226.50 million, which is three and a half times what the original owners paid for the franchise at the original auction in 2008.
However, the fourth shareholders in the company, Raj Kundra and Shilpa Shetty, will retain their 11.7% stake.
A high-ranking BCCI official, however, stated that some of the board members were hesitant to allow the deal to pass, since it is reported that former IPL commissioner, Lalit Modi, who was suspended by the BCCI during his tenure for irregularities, may financially benefit from the transaction.
The official, who spoke exclusively to ESPNcricinfo, said: “We suspect if the deal is allowed to go through Modi can benefit financially and some in the BCCI at least do not want that to happen.”
The Royals have had a colourful history in the IPL, winning the inaugural tournament in 2008, while being led by Australian spinning legend, Shane Warne. However, the club has been in the media spotlight for the wrong reasons as well, when the BCCI removed the franchise from the league in 2010, for transgressing shareholding and ownership norms.
But, the Royals, made a comeback to the tournament, after fighting their expulsion at the Bombay High Court, where they won and were given the right to participate in the league once again with all their rights and privileges intact.
With the fifth edition of the IPL scheduled to begin on the 4th of April, Rajasthan fans will be eagerly awaiting to see whether the new owners, if the deal is allowed to pass, can handle the pressure and lead the squad to be crowned IPL champions once again.