Indian Premier League's (IPL) Rajasthan Royals team valuation has reportedly touched over $250 million after one of United States' (US) prolific sports investors picked up a stake in the franchise cricket team.
New York-based RedBird Capital Partners, founded by former Goldman Sachs executive Gerry Cardinale, will take a 15% stake in the IPL franchise.
The investment is the latest example of US companies buying into fast-growing global franchises. Further financial details of the said investment have not been revealed, however, sources told the Financial Times, that the transaction valued Rajasthan Royals at between $250 million- $300 million.
Meanwhile, London-based venture capitalist Manoj Badale, who is the majority owner of the IPL franchise, has upped his stake in the team from 51% to 65% through his wholly-owned investment vehicle, Emerging Media.
Other existing stakeholders in Rajasthan Royals comprise Lachlan Murdoch, son of Rupert Murdoch and CEO of Fox Corporation.
The investment by RedBird is the latest in a series of sports deals, impelled by rapid appreciation of the IPL franchise and league valuations which in some instances have outdistanced benchmark indices.
Private equity firms such as Silver Lake Partners and CVC Capital Partners are among the companies that have been infusing money into sports leagues and teams.
RedBird's Cardinale told the publication that he was seeking to capitalise on the IPL's fast expansion since its inception in 2008 when the Rajasthan Royals were the inaugural champions.
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