Saudi Arabia eyeing a major share in lucrative Indian Premier League: Report
New Delhi: Saudi Arabia is interested in buying a significant stake in the Indian Premier League (IPL), a highly profitable international cricket event, Bloomberg reported.
Crown Prince Mohammed bin Salman's advisers have approached Indian government officials to explore the possibility of placing the IPL under a holding company valued at up to $30 billion, with Saudi Arabia taking a substantial stake, according to the report.
This proposal, discussed during the prince's visit to India in September, also included a plan for Saudi Arabia to invest up to $5 billion in the league and potentially expand its reach into other countries, akin to the English Premier League or the European Champions League, said the report.
The Saudi government is eager to proceed with the deal, but the Indian government and the country's cricket regulator, BCCI, are likely to make a decision on the proposal after next year's general elections.
The BCCI, led by Jay Shah, who is the son of India's Home Minister Amit Shah and a close associate of Prime Minister Narendra Modi, will play a crucial role in this decision-making process, according to Bloomberg.
If an agreement is reached, Saudi Arabia's powerful sovereign wealth fund, which has been instrumental in previous sports investments, may be used as the vehicle to facilitate the deal with the BCCI. However, no final decisions have been reached at this time.
Both the BCCI and the Saudi government's Center for International Communication did not respond to requests for comment, while the Public Investment Fund declined to comment, the report said.
The IPL has garnered a wide range of sponsors, including Aramco and the Saudi Tourism Authority. Despite its relatively short eight-week season each spring, bidders paid a substantial $6.2 billion last year for the broadcasting rights of IPL games until 2027.
This translates to $15.1 million per match, surpassing the English Premier League and coming in just behind the $17 million paid for each game in the National Football League in the US.
If Saudi Arabia invests in the IPL or introduces changes to the league's format, it is likely that the agreements for media rights will need to be renegotiated, according to sources familiar with the matter.
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