New franchises have to wait to take part in IPL, IPL 4 - to have new teams

The much-awaited Sunday announcements of the winning bids for two new franchisees of the Indian Premier League (IPL) sprung an unexpected surprise after the League decided to cancel the entire tender process and pushed the date back by two weeks.

IPL, evaluated by private financial agencies to be more than $2.4 billion after the first two editions, had kept the floor price to bid for a franchise at $225 million.

Further, there were stringent rules in place for potential bidders with IPL demanding the overall net worth of the bidder to be $1 billion, asking for a bid performance guarantee of $100 million (Rs 460 cr) and an eventual bank guarantee of up to or equivalent of the bidding amount.