'Actual payout to RCB is....': Lalit Modi breaks down Royal Challengers deal, BCCI share

Former IPL commissioner Lalit Modi on Thursday said the total payout for the acquisition of Royal Challengers Bengaluru is higher than the headline deal value, breaking down the structure of the transaction and the payments involved.

"The real actual payout for the RCB is actually 1.936 billion dollars to be precise," Modi said, adding that the figure includes additional components beyond the reported purchase price.

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According to Modi, the base transaction for the franchise stands at $1.78 billion, but additional costs push the total higher. "1.78 billion for RCB. 5% to BCCI for transaction commission every time share change hands. Which works out to a total of 1.848 billion dollars."

At an exchange rate of 93.97, the total payout of $1.936 billion translates to roughly Rs 18,200 crore.

Modi said the final figure also factors in the cost of the women's team. "Add to that the price it bid for RCB women's team which was 110 million dollars. Less two seasons it's paid. As the payment is spread over 10 years. Thus a total of 1.936 billion. A bit shy of 2 billion."

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He added that currency movements also affected the final value. "I had predicted 2 billion a few months ago. But the rupee has depreciated a lot since then too."

A consortium led by the Aditya Birla Group has acquired 100% equity stake in Royal Challengers Sports Private Limited from United Spirits Limited for $1.78 billion (about Rs 16,706 crore).

Other investors in the consortium include Blackstone's BXPE, Bolt Ventures owned by David Blitzer, and The Times of India Group.

In a statement, United Spirits said it had entered into definitive agreements for the sale of its entire stake in the franchise to the consortium.

Former RCB owner Vijay Mallya also reacted to the deal, recalling the franchise's early years. "I would like to heartily congratulate the new owners of RCB. I wish them the very best and Godspeed with the most valuable IPL franchise," he said. "When I bought the franchise in 2008 for INR 450 crores, most people laughed at me and criticised my investment as a vanity project."

Mallya said the growth in valuation reflected the brand built over the years. "Immensely gratifying to see my INR 450 crore investment grow to INR 16,500 crores."

He also referred to early decisions taken during his ownership. "RCB will always remain a part of my DNA with indelible memories including picking the young Virat Kohli who is now amongst the best in the World," the fugitive tycoon said.