Warne the king money-spinner as Rajasthan Royals strike gold off the field
Sydney Morning Herald
Friday June 5, 2009
SHANE WARNE the Musical might be closing prematurely due to dire financial times, but songs honouring the spinner will be ringing loudly in Lachlan Murdoch's office amid a titanic rise in the value of the Rajasthan Royals cricket franchise.Warne acted as captain-coach of a bunch of largely unknown players, and shocked all by defeating star-studded rivals to claim the first IPL crown last year, which has translated into a capital yield of $US73 million.Rajasthan owned by Emerging Media, of which Murdoch holds a stake of roughly 12 per cent was the cheapest of eight franchises sold before the start of the IPL, at $US67m.But buoyed by the team's victory, Bollywood actress Shilpa Shetty bought an 11.7 per cent stake earlier this year for nearly $US17m, which has taken the overall value of the team to more than $US140m ($173.5m) believed to be the greatest one-year gain of any sports team in its first year of existence.Murdoch's share, originally $US870,000, has skyrocketed in value to $US15m. The Herald understands he is unlikely to seek a greater share in the franchise despite the windfall, with sources suggesting he prefers to retain minor stakes in such investments.IPL commissioner Lalit Modi said the incredible surge in value of the Royals indicated his league was recession-proof. "[The stake sale] translates into an astronomical figure in terms of capital appreciation for Emerging Media. In my view, this is probably the highest appreciation for any franchise in the history of modern-day sports," Modi told the Herald.A spokesman for Murdoch did not dispute the claim, although he added the valuation was not a reflection of true dollar earnings. "It was a big gain in percentages, certainly in dollar terms it's nothing like a baseball franchise, but in percentages it could well be," the spokesman said.Warne's brilliant efforts in leading his rag-tag crew to cricket's richest prize must surely rank him alongside Michael Jordan and David Beckham as a King Midas of team sports.But even at $US140m, the Royals are far from a global sporting powerhouse, compared with Manchester United at $US1.8 billion, NFL's New England Patriots at $US1.6b, and the New York Yankees at $US1.2b.Shetty, who won Britain's version of Celebrity Big Brother, has involved herself in marketing the franchise and plans are under way to produce a Bollywood film about the Royals."It's a strategic business investment," she said. "I always support the underdogs, as I am myself one. Rajasthan Royals were the underdogs in IPL before they succeeded."Modi revealed that after successfully staging the second IPL in South Africa albeit forced by security fears in India he was convinced the tournament could be taken to all corners of the globe, including the United States. Cricket has been trying desperately to crack the lucrative US market, and the IPL is poised to introduce the shortest form of the game to this audience."The real eye-opener for me has been the fans and how they have taken to the IPL. Fans in South Africa have adopted teams and players, and the results have been there for all to see," Modi said."By our estimates, around 70 per cent of match attendance in season 2009 have been by people who have not previously been to cricket. It is clear to us that the success of IPL season 2009 in South Africa has underlined the fact that the IPL is now truly a global tournament."Our time in South Africa has made me more convinced than ever that the IPL brand of cricket will serve the game well by opening up entirely new markets in the years ahead. Yes, we will now examine other markets like the US."Rajasthan failed to emulate their first-season success, finishing sixth this year. Regardless, the addition of Bollywood glamour and development of younger players under Warne's tutelage can only enhance their prospects.From king of spin to king of bling, it seems Warne is the leggie that just keeps on delivering.
© 2009 Sydney Morning Herald
