Rajasthan Royals sale: How Shane Warne’s timely decision got his family Rs 450 crore

Legendary Australian bowler Shane Warne has always been known for weaving magic with his spin, but with the one decision he made decades ago, he would also be known as an astute investor. The one clause he agreed to years ago got triggered when Rajasthan Royals was sold to a consortium led by Kal Somani for $1.63 billion or over Rs 15,000 crore.

Here’s what happened:

Ahead of the Indian Premier League (IPL) season in 2008, Shane was signed by the Rajasthan Royals. However, it was not a simple contract. Apart from being made the skipper, he was also granted 0.75 per cent ownership stake for every year he played for the team. 

Warne spent four seasons with Rajasthan Royals, and led them to win the title in the maiden season in 2008. This basically meant he owned a 3 per cent stake in the franchise. 

Now with the team being sold for around Rs 15,000 crore, Shane Warne’s stake translates to Rs 450-460 crore, which will go to his family. The family would be able to sell the share and take away the money, provided the Board of Control for Cricket in India (BCCI) approved the deal. 

Shane Warne passed away in 2022 but his foresight would ensure this windfall for his family for a deal signed nearly two decades ago. 

RAJASTHAN ROYALS SALE

The Rajasthan Royals deal was facilitated by the global investment bank Raine Group following weeks of competition among bidders. Tech entrepreneur Somani, who specialises in sports data and artificial intelligence, moved from being a minority investor to acquiring a majority stake in the Royals. His acquisition is backed by prominent investors including Rob Walton of the Walmart family and the Hamp family, owners of the NFL’s Detroit Lions. This transaction stands as one of the largest private equity investments in Indian sports.

The bidding intensified after the March 16 deadline, with reports indicating that the consortium led by Somani outbid an Indian multinational conglomerate partnered with American sports investor David Blitzer. Earlier, the Royals’ board, chaired by Manoj Badale, had declined a $1.7 billion offer from Columbia Pacific Capital Partners, citing concerns over the offer’s executability.