Raj Kundra revealed that he bought Rajasthan Royals in 2009 as a Valentine’s Day gift for Shilpa Shetty, spending Rs 81.9 crore for an 11.7% stake, which is now valued at Rs 16,000 crore. It has been called the largest single-check investment for the IPL at that time. Kundra was later banned over betting allegations in 2015, despite insisting he was innocent.
In 2009, Shilpa Shetty and her husband Raj Kundra bought a major stake in the IPL cricket team Rajasthan Royals. At that time, many celebrities were investing money in cricket teams like these. But after some time, Raj had to step down from the team because people accused him of betting on matches.
Raj recently spoke about this in an interview and shared the reason behind the alleged Rs 81.9 crore deal.
Raj Kundra bought the team immediately after winning the title
Speaking to YouTube channel SMTV, Raj revealed that he acquired the team in 2009, right after Rajasthan Royals lifted the trophy in the inaugural season of the IPL. “I bought it like
Valentine’s Day
“Today’s gift,” he said.At that time, he did not have any business ventures of his own in India, and buying the team was his way of establishing the venture. “I thought Shilpa had brand value and I was investing money.
“I had bought my stake at that time, but the case is still ongoing,” he said, adding that the franchise was worth Rs 700 crore at that time. “When I bought it, the team’s valuation was Rs 700 crore, now the valuation is Rs 16,000 crore. My stake was 11.7 per cent.He was also proud of the size of his investment, calling it “the largest investment by an individual check holder in the IPL” at the time. “I was the first person to think this could become big,” he said.
Raj Kundra explains how IPL teams make money
When asked how IPL teams made profits, Raj explained that things were not that easy in the initial years and for the first 5-6 years, there was not much profit at all. “Either it broke even, or we had to invest a little bit,” he said, before explaining how the revenue model has changed since then. “Now the revenue coming in is much bigger. 70% comes through the TV deal. 10-15% comes through shirt sponsorships, and another 10-15% through ticket sales,” he said, adding that each IPL team now gets an annual profit of Rs 200 to Rs 500 crore, depending on their sponsorship deals.
Raj Kundra talks about the betting controversy
Pointing out that he was part of the team for 5-6 years before things took a turn and they were “accused of betting”, Raj defended what actually happened. “Then we were accused of betting and betting was not allowed. Then the team was suspended for two years. Some players were suspended for tampering, and as owners, we were banned from betting. What was that betting? It was as if you and I were sitting with each other. We were saying, ‘Lagi Chart?’ (Wanna bet?)” That was the conversation.
‘Lagi 500 ki char? (Do you want to bet 500?)” They said even this is not allowed. So we said you are blocking us for this? The case is still before the Supreme Court.Raj said that he alone is responsible among the owners of Rajasthan Royals. “I was the only one who was blamed. I said: Let’s take responsibility for the team. Saving the team was more important.”
Raj Kundra on whether betting is actually happening in the Indian Premier League
When asked if betting actually takes place within the ISL, he replied: “Betting happens. There is a parallel market for this. Internationally, people bet in the ISL, where it is legal. Here too, I am sure there is an underground market. But internally, nothing of that kind happens here.”
Raj Kundra banned for life by Lodha Committee
In 2015, the Supreme Court-appointed Justice R S Lodha panel, which investigated the 2013 betting scandal, handed down a life ban for Raj. Despite this, he continued to insist that he was not guilty.
