The IPL Governing Council met here today to open the bids for the new IPL franchise and Sun TV was found to have the highest bid amount.
"SUN TV Network have won the Hyderabad Franchise for an amount of Rs 85.05 crores per year. This Franchise fee represents a premium of over a 100 % above the amount paid by DCHL for the Hyderabad Franchise in 2008," BCCI Secretary Sanjay Jagdale said in a release.
"The SUN TV Network bid was substantially higher than the second bid of PVP Ventures, which was Rs 69.03 crores," Jagdale said.
In an effort to attract more bidders, the BCCI had kept the base price at a reasonable Rs 60 crores per year. Deccan Chronicle Holdings Limited had bought the Hyderabad franchise for Rs 428 crores for a period of 10 years.
Chennai-based Sun TV Networks Limited is one of India's biggest television networks with 32 TV channels and 45 FM radio stations primarily catering to an audience in the four southern languages of India. Their network includes channels covering news, entertainment, film, documentary and music.
The BCCI had floated the tenders for a new IPL franchise after terminating Deccan Chargers' contract on September 15 but the team owners DCHL had challenged it at the Bombay High Court.
The High Court had ruled in favour of the BCCI after Deccan Chargers Holdings Limited failed to furnish bank guarantee of Rs 100 crore before October 12 5pm deadline.
Later, an arbitrator had ordered for status quo but the High Court again ruled in favour of the Board.
DCHL then approached the Supreme Court which, however, declined on October 19 to interfere with the High Court decision which had set aside the status quo order passed by the arbitrator.
According to an IPL source, Sun TV has paid Rs 20 crore as signing amount and also the bank guarantee of Rs 85 crores for the first year.
The source said that the Deccan Chargers players, who are now left without a team following the termination of the franchise, will get the first option in the new team owned by Sun TV.
"Sun TV will have to inform the IPL by tomorrow as to which Deccan Charger players they want in the team," the source said.
Those players not selected will go to the common auction pool. All the IPL franchises will have to indicate by October 31 which players they wish to retain for the sixth edition of the league.
The source said that Sun TV and PVP Ventures were the only two companies which bid for the new IPL team. Four other companies had collected the forms but did not bid.
The BCCI had begun the process of finding a new IPL team inviting bids in respect of 12 cities – Ahmedabad, Cuttack, Noida Dharamsala, Indore, Hyderabad, Kanpur, Kochi, Nagpur, Rajkot, Ranchi and Vizag – just a day after terminating the Deccan Chargers' contract on September 15.
The DCHL had challenged the termination of its contract, but the Bombay High Court had on October 1 ordered the company to furnish a bank guarantee of Rs 100 crore, bear all expenses for IPL 6, including making payments to BCCI towards franchise, players and support staff. Besides, it was asked to bear the costs of conducting matches and other expenses.
But DCHL's failure to submit bank guarantee of Rs 100 crore of a nationalised bank by October 12 deadline allowed BCCI to initiate action in furtherance to the termination.
The IPL season 6 will commence from April next year.
New IPL Hyderabad team owner Kalanithi Maran: From student leader to tycoon
Kalanithi Maran, owner of USD 2.8 billion (appx Rs 15,000 crores) Sun Group which today won the Hyderabad franchise of the Indian Premier League, has come a long way from being a student leader in prestigious Loyola College to turning into South India's biggest media baron.
The 48-year-old Kalanithi Maran, who is the son of former Union Minister for Commerce Murasoli Maran and elder brother of former union textiles minister Dayanidhi Maran was the chairman of Loyola college's student wing which had taken up the cause of Tamil people based in Sri Lanka in mid 80's.
As per Forbes.com, Kalanithi is currently 24th in the list of the richest Indians -- a list that includes big names like Ambani brothers Mukesh and Anil, steel baron Lakshmi Mittal, Azeem Premji, Adi Godrej, Kumar Mangalam Birla, Rahul Bajaj to name a few.
An MBA from the University of Scranton (Pennsylvania), the media moghul from South has diverse business interest from owning TV channels to having a sizeable stake in SpiceJet airlines as well venturing into DTH service and couple of Tamil newspapers (Dinakaran & Tamil Murasu).
He is also the owner of multilingual FM channel (93.5 Red FM) as well Tamil FM channel (Suryan FM). His company is also into Tamil movie production as Tollywood is one of the biggest film industry in the world.
Kalanithi is learnt to have increased his stakes in SpiceJet to about 48 percent.
While he started the Sun TV back in April 14, 1993 with a modest bank loan of USD 86,000, exactly 10 years and 10 days after the launch on April 24, 2006 --- the company was listed in Bomaby Stock Exchange upon raising USD 133 million.