Reverse bidding to select two new IPL franchises
The Indian Premier League (IPL) Governing Council decided on Sunday to adopt a reverse bidding formula to select owners of the two new teams to be floated for the next two seasons in place of the suspended Chennai Super Kings and Rajasthan Royals.
The base price for the bidding process will be made on the basis of IPL’s central revenue, wherein bidders willing to forgo the bigger chunk from the `40 crore central pool money will be awarded a team. No franchise fee will apply. However, the bids can go into negative figures as well.
The tender for the two new teams is set to be cleared at the BCCI AGM. The tender document is likely to be issued by November 15.
According to IPL chairman, Rajiv Shukla said: “The bidders will be given till December 4 to get their clarifications. Most likely by December 8, a walk-in tender process will be conducted as per our normal practice and two new teams for two seasons will be decided.”
It was also decided in the meeting that five players each from CSK and RR will be put into a draft, to be picked by the two new teams. The rest of the players will put into an auction. This means players such as MS Dhoni, R Ashwin and Ajinkya Rahane could be part of a draft and not be available for the auction.
“Out of the 50 players available from both teams, five will be put into a draft. We felt at least the two teams will be ready with half-a-side. The rest will be put into an auction for the two new teams,” Shukla said.
The big player auction scheduled for 2016 has been deferred and will be held only when CSK and Rajasthan Royals return to the fold.
It also emerged from the meeting that Rajasthan and Kochi will not be considered as venues for the two new teams. “There are certain complications involved with Rajasthan and Kochi. It was felt that it is best not to involve the teams,” he said. The new teams, however, will be allowed to pick from the nine venues listed in the original teams tender issued in 2008. That means a team can choose Chennai as their base.