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- Adar Poonawalla to own 18% of Royals, with existing investors to share 7% of franchise
- Royals bought for US$67m in 2008
Indian Premier League (IPL) franchise Rajasthan Royals have been bought by billionaire Lakshmi Mittal and his family for US$1.65 billion.
The Mittal family will own 75 per cent of the Royals, with fellow businessman Adar Poonawalla to buy 18 per cent of the team. The remaining shares will be divided amongst existing investors, which includes Manoj Badale, the current principal owner.
The transaction also includes two overseas franchises controlled by the Royals – South African SA20 team Paarl Royals and the Caribbean Premier League’s (CPL) Barbados Royals.
The agreement, which is subject to regulatory approval, is expected to close in the third quarter of this year. Lakshmi Mittal, his children Aditya Mittal and Vanisha Mittal-Bhatia, will form the new-look Royals board alongside Poonawalla and Badale.
The chairman and largest shareholder of steel corporation ArcelorMittal, Lakshmi Mittal’s net worth is estimated by Bloomberg to be worth US$35.7 billion. He previously owned 20 per cent stake of English soccer club Queens Park Rangers (QPR), while his son Aditya Mittal co-owns the National Basketball Association’s (NBA) Boston Celtics.
“I love cricket, and my family is from Rajasthan, so there is no IPL team that I would rather be part of than the Rajasthan Royals,” Lakshmi Mittal said. “I look forward to being part of this great team and cannot wait to join all the fans pitch-side to cheer on our future success.”
Badale acquired the Royals for US$67 million when the IPL launched in 2008. His Emerging Media company owns 65 per cent of the franchise, with RedBird Capital Partners holding a 15 per cent stake in the team following a deal struck in 2021.
RedBird will exit its shareholding as part of the sale, alongside Fox chief executive Lachlan Murdoch, another minority investor.
“We are delighted to welcome the Mittal family and Adar Poonawalla as the new owners of the Rajasthan Royals,” Badale added. “Their passion for cricket, their connection to Rajasthan and India, and their long-term ambition for the franchise make them ideal custodians of the next chapter.
“I very much look forward to working alongside them and to supporting our extraordinary team and its loyal fans as the Royals continue to grow.”
Mittal’s deal for the Royals comes after US-based businessman Kal Somani had agreed to buy the IPL franchise for US$1.63 billion in March. Somani’s consortium also included Rob Walton, the owner of the National Football League’s (NFL) Denver Broncos and Michael Hamp, the son of Detroit Lions owner Sheila Ford Hamp.
ESPN CricInfo reports Somani’s group tabled the highest bid across multiple rounds, beating out Mittal, Manchester United co-owner Avram Glazer and other Indian conglomerates.
In a statement, Solmani and his consortium rejected reports the group couldn’t fund its bid and noted the outcome of the Royals sale process was “both surprising and disappointing”.
“We are deeply disappointed not to be part of the Rajasthan Royals ownership group, following a long six-month process in which we were the lead bid from start to finish,” the group said.
“Our consortium worked tirelessly to assemble a distinguished group of investors, with ownership experience across the NFL, [Major League Baseball (MLB)], [Premier League], LaLiga and TGL. Throughout the process, we were the strongest group at every stage, competing against some of the most prominent investors across the sports investing landscape.
“Contrary to stories that have been planted in the press, our group was and has always been fully funded, prepared to close with certainty, and never withdrew our bid. We had executed documentation in place and were told that the franchise’s board meeting on Saturday was held to approve our consortium. In the end this was never the case.
“We approached this process with the highest standards of honesty, integrity, professionalism and in good faith, but unfortunately that wasn’t enough. We do not believe the outcome ultimately reflected a level-playing field, and it is difficult to reconcile the strength of our bid and preparedness to close with the final decision.”
The sale of the Royals comes after fellow IPL team Royal Challengers Bengaluru (RCB) was sold for US$1.78 billion to a consortium led by David Blitzer.
The value of both team sales is greater than the reported US$575 million paid by the Torrent Group last February for a controlling stake in the Gujarat Titans, who were the last IPL team to change owners. The transaction valued the Titans at US$858 million.
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