Sanjiv Goenka Places Winning Bid of £107 Million on Manchester Originals, Outbids IPL Foes

Indian business baron and owner of Lucknow Super Giants (LSG) and Durban Super Giants Sanjiv Goenka makes the mark in global cricket with his acquisition of Manchester Originals franchise in The Hundred. This is the third cricket franchise of his growing sports portfolio. The purchase was agreed upon at an estimated £107 million, a figure that, though sizeable, is almost half the £195 million valuation of London Spirit, which was recently sold to a US-based tech billionaire consortium.

A Competitive Bidding Process

The Manchester Originals franchise's acquisition process was highly competitive as it was carried out through an e-auction. While the initial speculations were that global investors of the caliber of the Glazer family, owners of Manchester United, and CVC Capital would be in the fray, they did not end up being so. However, an unnamed IPL franchise and a tech consortium were the strong contenders to challenge Goenka for the ownership of the Originals. The identity of the competing IPL franchise is unknown, but the sources indicate that Rajasthan Royals, Chennai Super Kings, and Kolkata Knight Riders were interested in a team from The Hundred. Whether one of those teams re-entered the process is not clear.

His victory in the acquisition of the Manchester-based franchise also gives him further hold on the game globally, particularly in The Hundred, as he has become more popular since the inception of this league. This 49% stake in Originals would further be an important step for Goenka's expansionist plan, where he would not be limited to IPL and SA20 leagues.

Rising participation of IPL franchise owners in The Hundred

With the sale of five teams in The Hundred—Oval Invincibles, Welsh Fire, London Spirit, Birmingham Phoenix, and Manchester Originals—IPL owners have secured two of them. Mumbai Indians’ owners, the Ambanis, and now Goenka have successfully entered the English competition, emphasizing the increasing dominance of IPL-based investors in global T20 and short-format cricket leagues.

Three more franchises are up for sale: Trent Rockets, Northern Superchargers, and Southern Brave. The SunRisers franchise, which is already present in several leagues, is said to be the favorite for one of these teams. The GMR Group, co-owners of Delhi Capitals, is likely to buy Southern Brave as it has recently acquired Hampshire County Cricket Club.

Goenka's Passion for Sports Ownership

Goenka has been an influential figure in sports franchise ownership for a long time. It was a huge shock when his billion-dollar bid for the Lucknow Super Giants in the 2021 IPL team auction fetched him the rights of the franchise for an unprecedented ₹7,090 crore (approximately $940 million). This aggressive bidding clearly indicated his determination to build a strong cricketing empire.

Before his involvement with LSG, he briefly owned the Pune SuperGiants, which played in the IPL as an interim replacement team. Outside of cricket, Goenka has also invested in Indian football, owning a team in the Indian Super League (ISL). His latest move with the Manchester Originals solidifies his vision of expanding his sports footprint beyond India and into major international leagues.

Strategic Significance of Manchester Originals

Among the most recognizable franchises from The Hundred tournament is Manchester Originals. Last season, the side was led by Phil Salt, who then skippered the side in the absence of Jos Buttler, the regular skipper and England's white-ball captain. The side has been competitive, and Goenka's investment is expected to bring much-needed financial stability and global attention to the franchise.

With Goenka now staking a claim in an English franchise, it seems Indian business houses are increasing their foray into English cricket, which might mirror their similar expansion into T20 leagues around the world – South African, Caribbean, for instance. As such, IPL and The Hundred may get tighter ties that knit the global fabric of T20 cricket.

Franchise Cricketing Future

This increasing investment from IPL owners into The Hundred is a signal of a shift in the global cricketing landscape. As The Hundred picks up, it is becoming a profitable venture for investors looking to expand their portfolios beyond traditional T20 leagues. Goenka's latest acquisition highlights the financial appeal of English franchise cricket, despite initial skepticism about the format's commercial viability.

There are three more teams left for purchase, so there could be some more IPL-funded investments in The Hundred in the coming months. The growing Indian businessmen's presence in English cricket may eventually lead to the creation of partnerships between The Hundred, the IPL, and other T20 leagues across the globe.

For Goenka, the acquisition is not only a financial investment but rather a statement of intent. On top of being able to be a franchise owner, he has made strategic investments in sports for long-term action: creating a formidable position in international cricket. Only time will tell if this move will pay off in the long run, but in the meantime, Goenka has successfully expanded his sports empire and seen his power grow in the global cricketing industry.