In 2009, Shilpa Shetty and her husband, Raj Kundrabought a major stake in the IPL cricket team Royals of Rajasthan. Back then, many famous people used to invest money in cricket teams like this. But after some time, Raj had to quit the team because people accused him of betting on the matches. Raj recently spoke about it in an interview and shared a sweet reason behind the alleged Rs 81.9 crore deal.
Raj Kundra bought the team right after the title win
Speaking on YouTube channel SMTV, Raj revealed that he acquired the team in 2009, just after Rajasthan Royals lifted the trophy in the inaugural season of the IPL. “I bought it as one valentinegift of the day,” he said.At the time, he had no business of his own in India, and buying the team was his way of creating one. “I thought Shilpa has the brand value and I am putting the money. I bought my stake then, but the case is still on,” he said, adding that the franchise was then valued at Rs 700 crore. “When I bought it, the team’s valuation was Rs 700 crore, now the valuation is Rs 16,000 crore. My share was 11.7 percent,” he shared.He also took pride in the scale of his investment, calling it the “biggest single check holder investment in IPL” at the time. “I was the first person who believed this could be big,” he said.
Raj Kundra explains how IPL teams make money
Asked how IPL teams make profit, Raj explained that things were not that easy in the early years for the first 5-6 years, there was not much profit. “Either it was the break-even point, or we had to put a little bit into it,” he said, before explaining how the revenue model has changed since then. “Now the revenue is much bigger. 70 percent comes through the TV deal. 10-15 percent comes through the shirt sponsorships and another 10-15 percent through ticket sales,” he said, adding that each IPL team now earns an annual profit of Rs 200-500 crore, depending on its sponsorship.
Raj Kundra on the betting controversy
Raj shared that he was part of the team for 5-6 years before things took a turn, they were “accused of betting” and defended what had actually happened. “Then we were accused of betting and betting is not allowed. Then the team was banned for two years. Some players were banned for fixing and as owners, we were banned from betting. What was that bet? It was like you and I were sitting with each other. We would say, ‘Lagi shart? (Do you want to bet?)’ That was the conversation. ‘How about 500 ki shart? (Do you want to bet for 500?)’. They said even that is not allowed. And we thought, are you banning us for this? The case is still before the Supreme Court.”Raj said that only he was held responsible among the owners of Rajasthan Royals. “I was the only one who got blamed. I said, ‘Let’s take it for the team. Saving the team was more important.'”
Raj Kundra on whether betting really happens in IPL
When asked if betting actually takes place within the IPL, he said: “Betting happens. There is a parallel market for it. Internationally, people bet on IPL, where it is legal. Here too I am sure there is an underground market. But domestically, nothing like that happens here.”
Raj Kundra life ban by Lodha committee
In 2015, the Supreme Court-appointed Justice RS Lodha committee, which had probed the 2013 betting scandal, suspended Raj Raj. Despite this, he has continued to insist that he is not guilty.