Delhi Premier League franchise auction on July 28, players draft on August 2

The bidding for the six franchises of the Delhi Premier League, which is slated to take place in August/September, will take place on July 28 in the Capital with the basic reserve price for each team set at Rs 8 crore.

The players’ draft will take place on August 2.

“We have scheduled the auction of franchises for July 28. Apart from depositing the basic reserve price, a franchise will also have to deposit a bank guarantee of an equal amount,” said Rajan Manchanda, the joint secretary of the Delhi and District Cricket Association, to www.thedelhijunction.com.   

“So assuming, if a party buys a franchise for Rs 9 crore, that is one crore above the reserve price, it will have to deposit an equal amount as bank guarantee [for a year].”

The process of bidding for the franchises will begin on the evening of July 22.

Pre-bid discussion will be held through video conferencing on July 22 at 4-5 pm. The last date for seeking clarifications is July 23. The last date of submission of bid documents is July 26 on or before 5 pm whereas the evaluation of technical bid will be on July 27. Announcement of bidders declared qualified for participation in auction will be done on July 27.

The franchisee auction and declaration of successful bidders will be done on July 28 while the franchisee agreement will be made on the same day.

Selection of head coach, support staff, and verification of players profile will take place on July 31. The players’ draft will take place on August 2.

Bidder must have a turnover of Rs 100 crore as per the last financial statement (Financial Year: 2022-23).

The major concern, however, is that the franchises will be offered for only a period of five years.

“The successful franchisee will be granted the right (and will accept the obligation) to operate a team for five seasons of DDCA or five years, whichever is earlier, which includes a current season/year and may be extended for another term for three seasons/years at the sole discretion of DDCA,” states the Notice Inviting Tender (NIT) issued by the DDCA.

Assuming a franchise is bought for Rs 15 crore, which is seven crore above the reserve price, it will be very difficult for franchises to recover money, 75 crore in this case, in such a short period.

“I think the problem lies in the fact that the contract is only for five years. If it had been for 10 years, as in Indian Premier League, then it would have made sense for parties to buy a franchise as it would have given them time to make profit. It is unlikely that the franchise will make profit in such a short period,” said Pradeep Sangwan, a former Delhi cricketer, who is currently preparing for the Legends Intercontinental T20.

“The broadcasters will also be watchful and gauge the first year as you don’t know how much the DPL will click.”

However, Manchanda says five-year period is not a concern.

Though he admits that it will be hard for franchises to make money in the first 2-3 years, yet he says that owners are enthusiastic about the new league.

“The rates will be revised after five years. But the five-year period is not a concern. There is great interest and we are receiving queries, it all shows there is great enthusiasm,” added Manchanda.

Tags : Delhi Premier League, cricket, T20, DDCA