When the IPL flipped the script on team auctions, two franchises emerged from an unexpected battle
Since 2008, IPL auctions have featured record bids and intense competition. However, the 2016 auction was unique, focusing on businesses seeking minimal funding from the BCCI. The usual competitive bidding transformed into a reverse auction, rewarding those asking for the least money, which puzzled many. This event led to two temporary teams, Rajkot and Pune, altering the IPL dynamics significantly.
This change occurred after the suspension of major franchises Chennai Super Kings and Rajasthan Royals due to a spot-fixing scandal. The BCCI needed replacements for two seasons and opted to find companies willing to run teams with minimal financial backing.
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Out of 21 interested companies, only five submitted final bids. Ultimately, Delhi-based Intex Technologies won the rights to the Rajkot franchise, while Kolkata-based New Rising, led by Sanjiv Goenka, secured Pune.
The winning bids were not about paying the most but about taking the least from the central revenue pool. Although each IPL franchise was entitled to ₹70 crore per season from BCCI’s central revenue share, both new teams chose to forgo that entirely. Moreover, they agreed to pay the board additional sums—₹16 crores for Rajkot and ₹18 crores for Pune—essentially providing BCCI with a financial windfall of ₹340 crores over two years.
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For the BCCI, this was a jackpot. Instead, the board, which had expected to lose money by running two temporary teams, gained a financial boost. The IPL chairman at that time, Rajeev Shukla, called it a testament to the league’s popularity, proving that companies were willing to pay just to be part of the action.
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Intex Technologies and New Rising did not anticipate profits in two seasons; profitability was not the primary concern. Owning an IPL team provided invaluable brand visibility.
For Intex, being associated with a high-profile team meant significant advertising exposure across millions of screens. New Rising regarded it as an investment in prestige, akin to its stake in Atletico de Kolkata at that time. Marketing experts observed that the teams emphasized recognition over revenue.
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The IPL presented a unique marketing platform unmatched by any other league in India. The exposure could produce long-term benefits even if franchises existed for only two years.
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Post-auction discussions centred on marquee player movements. With the Chennai Super Kings and Rajasthan Royals out, big names like MS Dhoni, Ravichandran Ashwin, and Ravindra Jadeja needed new teams. The two new franchises were prioritized in a draft auction. Pune, with the lower bid, selected MS Dhoni first.
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The former CSK captain was moving to Pune (Rising Pune Supergiants) after leading his team to multiple titles. Meanwhile, Rajkot (Gujrat Lions) assembled a squad featuring Suresh Raina, Jadeja, and McCullum, creating a formidable lineup for the upcoming season.
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The Pune and Rajkot franchises were temporary, created for just two seasons before the Chennai Super Kings and Rajasthan Royals returned in 2018. Their presence in the IPL was memorable; Rising Pune Supergiants reached the final in 2017, losing by just one run to the Mumbai Indians.
When their IPL tenure ended, the franchise owners had no regrets. They entered the league in a unique way by paying to play instead of earning their place, leaving with a piece of IPL history.
