Tiger Global, one of the most active technology-focused investors in the world, is in discussions to purchase a financial share in the Rajasthan Royals of the Indian Premier League, according to two people familiar with the situation.

According to sources close to the negotiations, the New York-based company is considering a $40 million investment in the Rajasthan Royals at a $650 million valuation. This will signal Tiger Global’s debut into India’s sporting economy’s considerable expansion beyond the digital commerce industry, where it is best known for being an early backer of the ecommerce Titan company Flipkart. According to a second individual familiar with the situation, “the capital infusion could be direct or indirect, wherein Tiger may back one of the shareholders in Rajasthan Royals.”

Manoj Badale, who is located in the UK, owns the Rajasthan Royals’ parent company, Emerging Media. He has more than 60% of the franchise’s shares and acquired the rights in 2008.

On condition of anonymity, a source with knowledge of the negotiations said, “Tiger has been looking for opportunities in the IPL.”

The Royals were valued at more than $250 million in a secondary deal in 2021, according to a story in the Financial Times two years ago. RedBird Capital, a US company that invests substantially in professional sports clubs and properties, acquired shares in the secondary purchase. The company also owns shares in Liverpool FC of the English Premier League.

The non-tech portfolio of Tiger

Tiger, which arrived in India approximately 15 years ago, is very well known here. Among its best online bets are companies like Flipkart, Ola, Zomato, and Delhivery.

Tiger is invested in Dream 11, a significant player in online fantasy gaming that operates Dream 11, the sports economy. Moving aside from its primary technology interests, it has also invested in tea chain Chaayos and a quick-service food brand. Wow! Momo.

While institutional funds have been significant supporters of sports leagues (football, baseball, and basketball) throughout the US, UK, and Europe, the pattern is only now beginning in India. With an offer of Rs 5,625 crore, UK-based CVC Capital Partners, the first private equity group to acquire an IPL Team club, acquired the Gujarat Titans franchise in Ahmedabad.

Increase in IPL’s valuation

A report by the consulting company D and P Advisory estimated the value of the IPL franchise at $10.9 billion in 2022. Compared to 2020, when it was valued at $6.2 billion, this is a 75% increase in dollars. According to D and P Advisory, as ET published on December 21, 2022, the rise is 90% in terms of rupees.

In a report titled “Beyond 22 Yards,” the consulting company employed the discounted cash flow (DCF) method for valuation. The Board of Control for Cricket in India (BCCI) signed a $6.2-billion media rights contract last year, and the subsequent auction of two additional clubs, the Gujarat Titans and Lucknow Super Giants, for a combined value of $1.6 billion is what led to the significant increase in IPL worth. It was the first time that the media rights for the two mediums were auctioned separately. Viacom18 paid Rs 23,758 crore for the internet rights, while Disney Star paid Rs 23,575 crore for the IPL television rights. Both deals were for a five-year span.