A US-based consortium led by Kal Somani has alleged a lack of transparency and integrity after losing the bid to take over the Indian Premier League (IPL) franchise Rajasthan Royals, with the ownership going to a group spearheaded by industrialist Lakshmi N. Mittal. In a joint statement, Somani, Rob Walton of the Walmart Group and Sheila Ford Hamp of the Ford Group said they were “deeply disappointed and surprised” by the result, while also rejecting claims that they had pulled out of the bidding process. The consortium insisted the final outcome did not amount to a “level playing field”.
Key takeaways
- Kal Somani’s US-based group lost the Rajasthan Royals ownership race to the Mittal-led consortium.
- Somani, Rob Walton and Sheila Ford Hamp denied reports that they had withdrawn from the bidding.
- The consortium claimed it was fully funded and ready to complete the deal, disputing any suggestion of financing problems.
- They alleged the process lacked the transparency and integrity expected, despite submitting documentation.
- The Mittal family is set to hold roughly 75% of Rajasthan Royals, with Adar Poonawalla owning about 18%.
- The restructured board will feature Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla and Manoj Badale.
Consortium’s reaction and claim of being the lead bidder
In its statement, the Somani-led consortium said it was disappointed at not becoming part of the Rajasthan Royals ownership group after a “long six-month process” in which it claimed to be the lead bidder from beginning to end. The group said it assembled a wider investor set with experience across major franchise sports and leagues, citing backgrounds spanning the NFL, MLB, EPL, La Liga and TGL. It added that all partners were motivated by the prospect of helping elevate the IPL on an international stage.
The consortium also said it had been progressing steadily through the process and faced strong competition from high-profile players in the global sports investment space. It noted that only a month earlier, reports had suggested the group had secured a $1.63 billion buyout after edging past contenders including the Times Internet-led consortium, the Aditya Birla Group and the Mittal family led by ArcelorMittal chief Aditya Mittal.
Funding, documentation and the “board meeting” claim
As speculation circulated that the consortium may have faced funding constraints, the group firmly denied the narrative. It said its finances were never an issue, stating that the consortium was fully funded, prepared to close with certainty, and had not withdrawn its bid. It also claimed that it had completed the required paperwork and was told a franchise board meeting scheduled for Saturday would consider and approve its consortium’s bid.
The statement said the group had executed documentation in place and was informed that the franchise board meeting on Saturday was held to approve its consortium. However, it argued that this did not happen as expected. The consortium said it approached the process with the highest standards of honesty, integrity, professionalism and in good faith, but believed it ultimately fell short of what it viewed as the required standards to reach a fair conclusion.
It further said it could not reconcile the strength of its bid and readiness to complete the deal with the eventual decision. The consortium reiterated that it respected competitive outcomes, but maintained that transactions of this scale should be carried out with transparency, consistency, integrity and good faith.
What was reported about documentation, and who will own Rajasthan Royals
While the official announcement confirming the Mittal-Poonawalla acquisition did not disclose further specifics, a report suggested the decision was influenced by multiple concerns around the consortium’s documentation. It was also stated that the documents reportedly did not clear scrutiny from the existing owners, including Manoj Badale, though no detailed explanation was made public.
Under the planned ownership structure, the Mittal family will control approximately 75 per cent of Rajasthan Royals, while Adar Poonawalla is set to own around 18 per cent. The remaining close to 7 per cent will be held by approved existing investors, including Manoj Badale.
The revised Rajasthan Royals board is expected to include Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla and Manoj Badale.
