A US-based consortium that made the leading bid to acquire the Rajasthan Royals (RR) along with its other franchise interests in the SA20 and CPL has expressed shock and disappointment after the deal was instead taken by a different group led by Indian-origin businessman Lakshmi Mittal.
Mittal group closes RR deal at $1.65 billion
On Sunday, it was reported that Lakshmi Mittal, alongside Adar Poonawalla, purchased the Rajasthan Royals franchise for US$1.65 billion (around INR 15,660 crore). The figure edged out a US$1.635 billion offer reportedly submitted by the consortium based in the United States.
US consortium claims “level-playing field” concerns
In a statement released on Tuesday, the US consortium—headed by Arizona-based tech entrepreneur Kal Somani—said it was “both surprising and disappointing” that the Royals board chose another ownership group. The consortium also includes Rob Walton, an owner of the Denver Broncos in the NFL, and Michael Hamp, the son of Sheila Ford Hamp, who is associated with the Detroit Lions.
The group argued that the decision by the Royals board to grant the franchise to a separate consortium did not amount to a fair “level-playing field”.
How the bidding played out
- The Somani-led consortium is understood to have posted the top bids across four rounds of the bidding process.
- It reportedly outpaced multiple rivals, including Lakshmi Mittal, who was said to have bid independently and is believed to have offered a highest value of US$1.1 billion.
- The US group said it remained the lead bidder “from start to finish” throughout a long six-month process.
Details on recusal, board process and funding claims
The consortium stated it was deeply disappointed that it would not be part of the Rajasthan Royals ownership group, insisting it had assembled an experienced investor lineup and was ready to complete the transaction.
- The consortium said it had worked to gather investors with ownership experience across major US and European sporting leagues, including the NFL, MLB, EPL, La Liga, and TGL.
- It added that selected global superstars from top tiers of professional sports were also part of the group.
- The consortium claimed it was motivated by the prospect of helping the IPL reach “new international heights”.
- It rejected speculation that it had “withdrawn” its bid or lacked sufficient funds.
It was also understood that the final call was taken by the Rajasthan Royals board over the weekend of May 2–3.
- Kal Somani, who is already part of the existing Royals board after joining as an investor in 2021, was understood to have recused himself from the meeting because he was a buyer.
- The consortium is understood to have met the Royals’ principal owner, Manoj Badale, in London to work through the transaction details.
- The consortium said it believed the board meeting on Saturday was meant to approve its consortium, but claimed that approval did not end up occurring.
Query to Badale and criticism of the process
The matter of why one consortium was selected over the other remained unclear. A query was sent to Manoj Badale on May 3 to clarify details, but he did not respond.
In its statement, the Somani-led group said it had expected “competitive outcomes” but argued that processes of this scale should be handled with transparency, consistency, integrity, and good faith.
The consortium further said:
- It believed it was fully funded and prepared to close “with certainty” throughout the process.
- It claimed documentation had been executed in advance.
- It stated that, despite the group’s strength and readiness, the result was difficult to reconcile with the idea of a fair process.
The statement concluded by saying the outcome was surprising and disappointing, while framing the experience as part of a broader journey.
New Royals board timeline and leadership
Once the required approvals are secured, including those from the BCCI, the next Rajasthan Royals board is expected to be formed in the third quarter of 2026.
- The new board is expected to be led by Lakshmi Mittal.
- Other key members named include his son Aditya, daughter Vanisha Mittal-Bhatia, Adar Poonawalla, and Manoj Badale, who holds a minority stake.
