THE SALE OF THE Indian Premier League (IPL) franchise Rajasthan Royals (RR) has sparked a controversy after a consortium led by US-based entrepreneur Kal Somani publicly challenged the integrity of the bidding process.
The consortium led by entrepreneur Somani, backed by Rob Walton of the Walmart family and Sheila Ford Hamp from the Hamp family were initially announced as the new owners of the franchise, but later it was ultimately acquired by a consortium led by steel magnate Lakshmi N. Mittal and Adar Poonawalla in a deal valued at approximately $1.65 billion, one of the biggest transactions in IPL history. Following the announcement of the new owners, the Somani-led consortium has now issued a media statement expressing “deep disappointment” and alleging that the process “doesn’t reflect a level-playing field.”
The group claims that they were the leading bidder for nearly six months, from start to finish of the process, and contrary to reports, they never withdrew their bid and remained fully committed. The consortium insisted it was fully funded and ready to close the deal and alleged a lack of transparency and consistency in how the final decision was made. In a pointed remark, the group stated that despite approaching the process with “honesty, integrity, professionalism and good faith,” it “wasn’t enough.”
The consortium claimed it was effectively “pushed out” of the deal, despite expectations that its bid would be approved at a key board meeting. They also disputed earlier narratives suggesting they had withdrawn voluntarily, stating such reports were misleading.
The statement said: “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.”
While the Somani group maintains it was unfairly sidelined, reports indicate there may have been issues related to documentation and bid structure, which potentially affected the final decision. Additionally, earlier reports had hinted at funding constraints and legal complexities surrounding the deal process, although the Somani consortium has denied any financial shortcomings.
The winning consortium is expected to have the following ownership structure where the Mittal Family will hold nearly 75 percent stake, Poonawalla will own 18 percent, while the remaining 7 percent will stay with existing set of investors, including Manoj Badale. The deal remains subject to regulatory approvals, including from the BCCI and antitrust authorities, and is expected to close in Q3 2026.
