Star India among bidders for two new IPL teams

The Indian Premier League will get two new teams on Tuesday for the ninth edition of the popular Twenty20 tournament.

The Indian cricket board will open tenders for two new IPL teams that will replace Chennai Super Kings and Rajasthan Royals, which were suspended by the RM Lodha Committee, appointed by the Supreme Court to investigate the 2013 IPL corruption scandal.

Star India and Chettinad Cement are among the companies which have bought the bid document for buying the two new teams in the Indian Premier League (IPL). Apart from Star and Chettinad, it is learnt that Cycle Brand Aggarbatti has also bought bid document from the BCCI.

“There are 21 corporates and large business houses which have bought bid documents. Now buying bid documents doesn’t necessarily mean participating in the bid,” a top BCCI official told PTI.

While Star Sports are official broadcasters of India’s home matches as well as matches in Australia, England and ICC tournaments, thinking about buying an IPL team could be a significant development.

Those who will buy team will own it for two years.

"It will be a walk-in bid on December 8. The base price for reverse bid from central revenue pool is Rs 40 crore and the party which bids for lowest share from central revenue pool will be the winner of new team,” IPL chairman Rajiv Shukla had said.

The classical definition of reverse bidding or reverse auction states: "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 be paid for the good or service, and at the end of the auction the seller with the lowest amount wins."

Five players each from each of suspended franchises would be put up for draft while others will be auctioned.