US-Based Consortium Calls Outcome “Surprising and Disappointing” After Losing Bid to Mittal-Poonawalla Group

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The high-profile sale of the Rajasthan Royals has sparked controversy after a US-based consortium led by Kal Somani raised concerns over the fairness and transparency of the bidding process. Despite reportedly submitting the highest bids across multiple rounds, the group ultimately lost out to a consortium led by Lakshmi Mittal and Adar Poonawalla.

The winning bid, valued at approximately $1.65 billion (INR 15,660 crore), edged past the Somani-led consortium’s $1.635 billion offer. The deal includes ownership not only of the IPL franchise but also its sister teams—Paarl Royals in South Africa’s SA20 league and Barbados Royals in the Caribbean Premier League.

Consortium Claims Lack of Level Playing Field

In an official statement, the Somani-led group described the outcome as “surprising and disappointing,” emphasizing that they had led the bidding process from start to finish. The consortium included prominent global investors such as Rob Walton and Michael Hamp, along with other major figures from leagues like the NFL, MLB, EPL, and La Liga.

The group firmly rejected speculation suggesting they had withdrawn or lacked sufficient funding. Instead, they asserted that they were fully prepared to close the deal and had already completed the necessary documentation. According to their statement, they were even led to believe that the final board meeting was set to approve their bid.

“We do not believe the outcome ultimately reflected a level-playing field,” the statement noted, highlighting concerns about transparency, consistency, and integrity in a process of such significance.

Decision-Making Process Remains Unclear

The final decision was reportedly made by the Royals board over the weekend of May 2–3. Interestingly, Somani—who has been part of the Royals board since 2021—recused himself from the meeting due to his involvement as a bidder. Discussions between the consortium and existing principal owner Manoj Badale had taken place in London prior to the decision.

However, the exact reasons behind the board’s preference for the Mittal-led consortium remain undisclosed. Attempts to seek clarification from Badale have so far gone unanswered, further fueling speculation around the deal.

What’s Next for Rajasthan Royals?

Pending approvals from the Board of Control for Cricket in India, the new ownership structure is expected to be finalized by the third quarter of 2026. The incoming board will include Lakshmi Mittal, his son Aditya Mittal, daughter Vanisha Mittal-Bhatia, Adar Poonawalla, and Manoj Badale, who will retain a minority stake.

Despite the setback, the Somani-led consortium stated that it views this episode as part of a broader journey in global sports investment. However, the controversy has raised important questions about governance, transparency, and fairness in high-value franchise sales within the rapidly growing ecosystem of the Indian Premier League.