JSW Sports Pvt. Ltd has agreed to acquire a 50% stake in GMR Sports Pvt. Ltd, which owns the Indian Premier League (IPL) franchisee Delhi Daredevils, from GMR Group's promoters.
The sale is subject to approval from the Board of Control for Cricket in India and other customary conditions precedent, JSW Sports said in a statement. It didn't disclose the deal value.
Parth Jindal, director at JSW Sports, said the Delhi Daredevils team will add to their existing portfolio of sports investments.
JSW Sports is part of the Sajjan Jindal-led JSW group. It owns football team Bengaluru FC and Bengaluru Yodhas franchisee in the Pro Wrestling league.
Bengaluru FC recently joined the Indian Super League. Previously, it used to compete in the I-League.
JSW also supports athletes through its flagship sports excellence programme, according to its website.
Incorporated in 2008, GMR Sports holds the rights for Delhi franchisee in the IPL T20 cricket tournament.
The GMR group also owns Jo’burg Giants, a cricket franchisee based out of Johannesburg, South Africa, which will play in Cricket South Africa’s T20 Global League. Its other sports franchisees include Lucknow-based UP Yoddha in Pro Kabaddi league and Dilli Veer in Pro Wrestling League.
GMR Sports’ operating income stood at Rs 123.86 crore and loss after tax of Rs 9 crore in the year through March 2017.
As on 31 March 2017, GMR Enterprises Pvt. Ltd held a 51% stake in the company. Srinivas Bommidala, Grandhi Kiran Kumar and GBS Raju held 12% each and Grandhi Mallikarjuna Rao owned the remaining stake.
GMR said in its annual report for 2016-17 that IPL franchises will receive 50% of the media rights over the next five-year period. Of this, 45% will be shared equally and 5% as variable depending on league table position at the end of each season.
Broadcaster Star India has the IPL media rights for five seasons starting 2018 for Rs 16,347.50 crore. Chinese handset maker Vivo has the IPL title sponsorship for Rs 2,199 crore over the same period.
GMR said this will ensure Rs 1,000 crore will come to the Delhi Daredevils franchise through central revenue over the five years starting 2018.