And he is ready to take risks. The purchase of the IPL franchise comes at a time when the cricket carnival faces uncertain prospects. Kalanithi, say associates, made up his mind to invest in it the moment he saw the advertisement put out by BCCI.
The paperwork was completed in less than a week, and the bid submitted in a month. Its bid of Rs 85.05 crore a year for the next five years (a total of Rs 425.25 crore) for the Hyderabad franchise was less than half of what Sahara paid for Pune.
Kalanithi wants to exploit the synergies between cricket, media and entertainment. He can pack the stadium with celebrities when his team plays to draw in the crowds. Narayanan recently told Business Standard that the investment would turn profitable from the third year and fetch a perpetual annuity of Rs 60 crore from the fifth year.