Published: Oct 20, 2015, 07:56 AM (IST)
Edited: Oct 20, 2015, 07:56 AM (IST)
New Delhi: The Board of Control for Cricket in India (BCCI) top brass has gone into overdrive to decide on a revenue model that would work for the potential investors bidding for the two new Indian Premier League (IPL) teams with the idea of ‘Reverse Bidding’ doing the rounds. Since the two teams will be replacing the suspended Chennai Super Kings (CSK) and Rajasthan Royals (RR) for two years, the question has been the sustainability for the potential investors as the time span is very short for any big business venture. A senior BCCI office-bearer today said that ‘Reverse Bidding’ is one of the options that will be discussed at the board’s AGM on November 9. READ: BCCI invites bids for replacement of Chennai Super Kings, Rajasthan Royals
“If there is lack of interest in conventional bidding because of this two-year span, there is a possibility of reverse bidding that can happen where in an investor, who bids the lowest amount will be owner of a team. For example, if BCCI plans to pump in 70 crore, it might be the potential investor can buy bidding at Rs 50 crore, 40 crore or 30 crore depending on the lowest,” one of the senior office-bearers said today. READ: BCCI to not terminate Chennai Super Kings (CSK), Rajasthan Royals (RR) from IPL
The classical definition of reverse bidding or reverse auction states: “In a reverse auction, the buyer puts up a request for a required good or service. Sellers then place bids for the amount they are willing to be paid for the good or service, and at the end of the auction the seller with the lowest amount wins.” READ: BCCI set to discuss future of CSK, Rajasthan Royals at the working committee meeting
As of now there is a chance of the players of the two suspended teams along with a few others going into the auction pool. The official, however, did not say anything about whether it will be a 10-team league from 2018. “Look, our contracts with all the sponsors and the official broadcasters ends after the 2017 edition. Post that, we will start with a clean slate and all players would go back to auction,” the official added.
