BCCI takes a big decision to deny Saudi Arabia takeover
Saudi Arabia will not be taking over Indian cricket anytime soon as the Board of Control for Cricket in India (BCCI) has decided to remain a 'society'. The decision to remain a society was taken at the BCCI AGM in Bengaluru on September 29, Sunday.
According to the resolution, it was a unanimous decision from the members of the board to remain as a society which also means that the Indian Premier League (IPL) won't be converted to a company.
“The members unanimously resolved to maintain BCCI’s legal status as a society. The members further resolved that the tournaments of the BCCI, including IPL, shall not be converted to a company,” the resolution stated.
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Why did BCCI decide to remain a 'society'?
Last year, Saudi Arabia had expressed its desire to buy a multibillion-dollar stake in the IPL. It is believed that the decision to remain a society was taken to not allow any foreign interference in the board.
The BCCI has allowed private investment by selling franchise ownership in the IPL but they want no external interference within the board as they fear the loss of control.
“Any external entity will pump in money, yes. But once your autonomy is compromised, you lose control. It’s not that the BCCI was open to such a possibility. But now that there is a resolution passed, it will also work as a legal safeguard for future,” a state official who attended the BCCI AGM said.
A member who attended the meeting revealed that it was a unanimous decision by the board members to safeguard the long-term interests of the board.
“When the matter came up for discussion in the meeting, it was unanimously decided that a resolution be passed to protect the long-term interest of the board,” the member said.
The BCCI was registered as a society in Madras (now Chennai) way back in 1928. Since then, it has remained a society till now.
The IPL is arguably the biggest league in cricket. The league is organized by the BCCI once a year for a period of around two months. It has an enterprising value of over $10 billion according to the current value.
This move by BCCI to remain a society was taken when the other cricket boards openly expressed their desire for private investment. Recently, Hampshire, the county side from England, sold 100 percent of its stake to GMR Group. The same group also is also the co-owner of the IPL side Delhi Capitals.
Saudi Arabia's strong investments in sporting world
Saudi Arabia has been making huge investments recently in various sporting events. Saudi has a strong sovereign wealth fund due to rich oil reserves and it has allowed the kingdom to make billion-dollar investments in various sports like football, boxing, golf, and many other sports.
Their investments in football are particularly famous as they have made big signings of legendary footballers like Cristiano Ronaldo, Karim Benzema, Sadio Mane, Neymar, and many more to allow these players to play in the Saudi Pro League, the country's premier domestic football tournament.
However, their investments and interference in cricket have been limited so far apart from the state-run Oil and Gas company Aramco, which is one of the leading sponsors for ICC tournaments. Saudi Tourism and Aramco were also the sponsors of IPL in 2023 but did not extend their deal with the league.
