Reverse bidding will attract investors to bid for new IPL franchises: BCCI

BCCI will discuss the option of ‘Reverse Bidding’ in their next AGM

After brainstorming to produce a revenue generating model for potential bidders for the two new IPL franchises, ‘Reverse Bidding’ could be an immediate solution for the BCCI.

Since the two new teams will be replacing the suspended Chennai Super Kings and Rajasthan Royals for two years, the main problem is how sustainable their investments would be in such a short span of time.

A senior BCCI official said that 'Reverse Bidding' an option that will be put forward for discussion in the BCCI’s next AGM.

“If there is lack of interest in conventional bidding because of this two-year span, there is a possibility of reverse bidding that can happen where in an investor, who bids the lowest amount will be owner of a team. For example, if BCCI plans to pump in 70 crore, it might be the potential investor can buy bidding at Rs 50 crore, 40 crore or 30 crore depending on the lowest," he said.

In a reverse auction, the buyer puts up a request for a required good or service. Sellers then place bids for the amount, they are willing to pay for the good or service, and at the end of the auction the seller with the lowest amount wins. As of now there is a chance of the players of the two suspended teams along with a few others going into the auction pool.

Meanwhile there has been no official confirmation about the number of teams that would participate in the tournament from 2018.

"Look, our contracts with the sponsors and the official broadcasters end after the 2017 edition. Post that, we will start with a clean slate and all players would go back to auction," the official added.

Majority of the BCCI members were not too keen on termination of the two IPL franchises, which were involved in the spot-fixing scandal in 2013 and there is a high chance of their return after 2017.

IPL Chairman Rajiv Shukla stated that the players, who were part of the two disbanded franchises don’t have to worry as their interests will be protected. These players will be put up for auction and will face no problems in playing for the new franchises if selected.

"The future of Chennai and Rajasthan players will be fully safe. They don't need to worry about anything. The players' interest will be protected. There will be no problems to the players," he added.