Lalit Modi

Which, again, legality or to the Western view ethics aside, actually is brilliant. What an amazing way to start something from nothing.

Which, again, legality or to the Western view ethics aside, actually is brilliant. What an amazing way to start something from nothing.

Totally. And what Lalit is architecting here is not just saying transactions. He's saying no risk transactions. I'm going to create no risk transactions where you have no downside and all upside. And he actually genuinely is able to align all the players here such that like nobody is really holding the bag.

Totally. And what Lalit is architecting here is not just saying transactions. He's saying no risk transactions. I'm going to create no risk transactions where you have no downside and all upside. And he actually genuinely is able to align all the players here such that like nobody is really holding the bag.

Yeah, exactly. You need to have some level of trust here. Actually, a pretty high degree of trust.

Yeah, exactly. You need to have some level of trust here. Actually, a pretty high degree of trust.

Yep.

Yep.

Yep. Well, you could argue if you're WSG whether you should have or should not have valued Lalit's trustworthiness because what he offers does end up coming to pass, just not in the spirit in which he offered it.

Yep. Well, you could argue if you're WSG whether you should have or should not have valued Lalit's trustworthiness because what he offers does end up coming to pass, just not in the spirit in which he offered it.

Okay, so they announced the billion-dollar deal with WSG and Sony. This is like an earthquake that hits the cricket world. No domestic league had ever remotely been valued on a media rights basis like this before. Not to mention, the league doesn't exist yet. There are no franchise owners, you know, etc. It's just a business plan.

Okay, so they announced the billion-dollar deal with WSG and Sony. This is like an earthquake that hits the cricket world. No domestic league had ever remotely been valued on a media rights basis like this before. Not to mention, the league doesn't exist yet. There are no franchise owners, you know, etc. It's just a business plan.

Then, on the back of that momentum, 10 days later at the end of January... They launch the franchise auction. And like we said, the minimum reserve bid for each of the eight franchises is $50 million for the ownership groups. But the TV money is now in place. This is why it was so important.

Then, on the back of that momentum, 10 days later at the end of January... They launch the franchise auction. And like we said, the minimum reserve bid for each of the eight franchises is $50 million for the ownership groups. But the TV money is now in place. This is why it was so important.

So here is the prospectus that gets distributed out to potential bidders on these franchises. Of the central media rights revenue, the broadcast deals like they've just done with WSG and Sony, and also the central sponsorship deals, 50%, one half of that, will get distributed out to the collective eight franchises to be distributed equally. But here's the kicker.

So here is the prospectus that gets distributed out to potential bidders on these franchises. Of the central media rights revenue, the broadcast deals like they've just done with WSG and Sony, and also the central sponsorship deals, 50%, one half of that, will get distributed out to the collective eight franchises to be distributed equally. But here's the kicker.

Wallet is the master of manipulating time in his deals. That is what it will be at steady state. In the first year, it will be 80%. 8-0. So 8 out of every $10 that are coming in centrally to IPL. will get distributed out, just happens to be eight teams. So each of the eight teams is going to get 10% of the total central money that's coming into the league.

Wallet is the master of manipulating time in his deals. That is what it will be at steady state. In the first year, it will be 80%. 8-0. So 8 out of every $10 that are coming in centrally to IPL. will get distributed out, just happens to be eight teams. So each of the eight teams is going to get 10% of the total central money that's coming into the league.

And then it's going to be a sliding scale over the next 10 years that's going to take it down to 50%. And so how does the math work out now? Okay, you already know what the TV rights deal is. It's $60 million in the first year, hard cash that's coming in.

And then it's going to be a sliding scale over the next 10 years that's going to take it down to 50%. And so how does the math work out now? Okay, you already know what the TV rights deal is. It's $60 million in the first year, hard cash that's coming in.