BCCI mulls ‘Reverse Bidding’ for two new IPL teams
The 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 IPL teams with the idea of ‘Reverse Bidding’ doing the rounds.
Since the two teams will be replacing the suspended Chennai Super Kings and Rajasthan Royals 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 on Monday said that ‘Reverse Bidding’ is one of the options that will be discussed at the board’s AGM on November 9.
“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 on Monday.
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.”
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.