In 2009, Shilpa Shetty and her husband, Raj Kundra, bought a significant stake in the IPL cricket team Rajasthan Royals. Back then, many famous people were putting money into cricket teams like this. But after some time, Raj had to step down from the team because people accused him of betting on matches. Recently, Raj spoke about it in an interview and shared a sweet reason behind the deal: he bought the team for Shilpa as a Valentine‘s Day gift, paying Rs 81.9 crore for his share.
Raj Kundra bought the team right after the title win
Speaking to YouTube channel SMTV, Raj revealed that he acquired the team in 2009, right after Rajasthan Royals lifted the trophy in the IPL’s inaugural season. “I bought it like a Valentine’s Day gift,” he said.At the time, he had no business ventures of his own in India, and buying the team was his way of setting one up. “I thought Shilpa had the brand value and I am putting in the money. I bought my stake then, but the case is still going on,” he said, adding that the franchise was valued at Rs 700 crore back then. “When I bought it, the valuation of the team was Rs 700 crore, now the valuation is at Rs 16,000 cr. My share was 11.7 percent,” he shared.He also took pride in the scale of his investment, calling it the “largest single cheque holder investment in IPL” at the time. “I was the first person who believed that this could go big,” he said.
Raj Kundra explains how IPL teams make money
Asked about how IPL teams turn a profit, Raj explained that things weren’t so easy in the early years for the first 5-6 years, there wasn’t much profit at all. “Either it was break-even, or we had to put in a little bit,” he said, before going on to explain how the revenue model has changed since then. “Now the revenues coming in are much bigger. 70 percent comes in through the TV deal. 10-15 percent comes in through sponsorships that are on the jerseys, and another 10-15 percent through the ticket sales,” he said, adding that every IPL team now earns an annual profit of Rs 200-500 crore, depending on their sponsorship deals.
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 he defended what had actually happened. “We were then 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 for betting. What was that betting? It was like you and me sitting with each other. We would be like, ‘Lagi shart? (Want to bet?)’ That was the conversation. ‘Lagi 500 ki shart? (Want to bet for 500?)’. They said even that is not allowed. And we thought, you are banning us for this? The case is still sub judice with the Supreme Court.”Raj said that he alone was held responsible among the Rajasthan Royals owners. “I was the only one who was 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 questioned on whether betting really goes on within the IPL, he answered, “Betting happens. There’s a parallel market for this. Internationally, people bet in IPL, where it’s legal. Here too, I am sure there is an underground market. But internally, nothing of this kind happens here.”
Raj Kundra’s life ban by the Lodha committee
In 2015, the Supreme Court-appointed Justice R S Lodha committee, which had probed the 2013 betting scandal, handed Raj a lifetime suspension. Despite this, he has continued to insist that he is not guilty.
