Table of Contents
The Kolkata Knight Riders (KKR) could have a new co-owner, as Ares Management, a US-based global alternative asset management firm, has reportedly been in talks with the franchise owners about exploring the massive cricket-based market in India.
Since the inception of the Indian Premier League (IPL), the Indian cricket market has become an attraction to global investors. If, in the future, KKR agrees to join hands with Ares Management, it will be one of the highlights in the Indian cricket industry.
Jay Mehta-backed Mehta Group wants to explore the market
Ahead of the IPL 2027 mini auction, it has been reported that the three-time IPL winners are in talks with the US-based company to reshape their ownership structure. Currently, the ownership of the franchise is in the hands of Knight Riders Sports Private Ltd, a joint venture between Bollywood superstar Shah Rukh Khan's Red Chillies Entertainment, Juhi Chawla, and industrialist Jay Mehta-backed Mehta Group.
The venture was set up in 2008. If the reports are to be believed, then Jay Mehta-backed Mehta Group is interested in selling a portion of its ownership. In mid-August this year, Moneycontrol in their website reported that Mehta Group was targeting around 20 per cent of their stake with a premium valuation of $1.8 bn.
Ares Management could buy stakes in KKR
As per the report, the amount seemed to be only a proposed valuation, not the final numbers. Since the report was published in August, there have been no major updates in the public domain. As there are no official updates or any claims across any reliable sources, the deal may not be finalized yet.
When both of the parties will come together to finalize a deal or whether any deal will take place in the future will be interesting to see. The stake sales of the Royal Challengers Bengaluru (RCB) and the Rajasthan Royals (RR) seem to have opened the gates for other investors around the globe.
Ares Management is likely to get only a portion of the ownership
Unlike the deals with RCB and RR, where the investors purchased the majority of the stakes from the owners at that time, KKR is likely to dilute a minor stake to the potential new investor. Again, the deals involving RCB and RR involved all of their owners; in the case of KKR, the probable deal with Ares Management could be only with the Jay Mehta- led Mehta Group, not with all of the other owners.
"The RCB and RR deals were majority stake sales. But in the case of KKR, it’s only one of the co-owners, Jay Mehta- led Mehta Group, which plans to offload a minority stake and unlock value. Discussions have been held with Ares Management in this regard, but no final call has been taken as yet," a source close to the development informed the media house.
As per the reports, 55 per cent of the ownership of the venture belongs to Red Chillies Entertainment, while Mehta Group has the remaining 45 percent of the ownership of the franchise.
Read More: Kolkata Knight Riders retained players list 2027: Predicted retentions ahead of IPL auction
