It is not clear whether cricket spoilt them or they spoilt cricket. But the parents of most IPL teams are in trouble, financial and otherwise – some neck deep, others a tad lower.
Last week, Deccan Chargers became the second team to be booted out since the high-profile league started in 2007. BCCI, which has to take part of the blame, has floated tenders for a new team. But the bidders have to take a long, hard look at the business model before padding up.
Business Standard looks at the IPL team owners and their recent troubles
DECCAN CHRONICLE HOLDINGS Owner, Deccan Chargers team Deccan Chronicle has piled up huge debts and all owners’ shares are pledged with lenders. The finance ministry has reportedly ordered a probe into the reckless lending to the group. At best, it stares at a takeover by competition, while a shutdown is the worst-case scenario | |
| MARKET CAP | |
| Sept 2007 Rs 4,912.73 cr | Sept 2012 Rs 213.55 cr |
|
Difference in market cap
-95.65 % | |
| KINGFISHER/UB GROUP Owner, Royal Challengers Bangalore Team The group’s airline business has debts of about Rs 7,000 crore. It is unable to meet fuel, staff costs, etc. There is no respite in sight and, now, the woes have spread to the spirits business, with acquirers circling the flagship United Spirits | |
|
MARKET CAP
| |
| Sept 2007 Rs 33,940 cr | Sept 2012 Rs 36,186 cr |
| Difference in market cap 6.62 % | |
|
GMR GROUP
Owner, Delhi Daredevils The Income Tax Department has conducted raids at its offices in Bangalore, Mumbai, Hyderabad and Delhi. The group’s working model in the Delhi International Airport has also been questioned by the Comptroller and Auditor General | |
|
MARKET CAP
| |
|
Sept 2007
Rs 28,795.67 cr |
Sept 2012
Rs 9,633.69 cr |
|
Difference in market cap
-66.54 % | |
|
INDIA CEMENTS
Owner, Chennai Super kings The company has been the target of raids and investigations by the Income Tax Department and the Central Bureau of Investigation on allegations of links with YSR Congress Party chief Jaganmohan Reddy | |
|
MARKET CAP
| |
| Sept 2007 Rs 7,628.50 cr | Sept 2012 Rs 2,927.36 cr |
| Difference in market cap -61.63 % | |
|
DLF
Title Sponsors 2008-2012 The controversy involving land deals with companies of Robert Vadra, son-in-law of Congress president Sonia Gandhi, comes at a time when the real estate business is struggling to get out of a rut | |
|
MARKET CAP
| |
|
Sept 2007
Rs 1,30,071.53 cr |
Sept 2012
Rs 39,712.10 cr |
|
Difference in market cap
-69.47% | |
|
SAHARA INDIA PARIVAR |
|
Largely unlisted |
| Compiled by Sundaresha Subramanian Source: News reports, IPLt20.com |
