The proposed $1.63 billion buyout of Indian Premier League (IPL) franchise Rajasthan Royals has been pushed further due to funding hurdles within the lead investor group, regulatory obstacles and complexities connected to the structure of the consortium of buyers, said those familiar with the instance. The Somani-led consortium features global investors including Rob Walton, an heir to the Walmart empire and principal owner of the NFL’s Denver Broncos, and Sheila Ford Hamp, principal owner of the NFL franchise Detroit Lions, and her son Michael Hamp.
Manoj Badale, Rajasthan Royals’ co-owner and an active promoter of Royals Sports Group said, “The Kal Somani discussion are progressing, and we remain focused on ensuring a positive outcome for the franchise.”. It added that Somani is understood to be seeking a majority stake in the consortium, while the exact capital contribution of each member could not be ascertained. In addition to Badale, other shareholders in Rajasthan Royals include RedBird Capital, Lachlan Murdoch and more, with Somani also being an existing investor in Rajasthan Royals.
Somani is in the process of raising capital to fund the transaction and has reached out to multiple large investment firms. However, he is yet to finalize the needed commitments, pushing the deal’s closure even further.
These developments have come amid the ongoing legal dispute involving former investor Raj Kundra. Through his investment venture Kuki Investments, Kundra has approached the National Company Law Tribunal (NCLT), alleging oppression and mismanagement and seeking reinstatement of his 11.7% stake. Additionally, a UK court granted an anti-suit injunction restraining Raj Kundra from pursuing selective proceedings. However, this order is being challenged before the High Court. The court has noted that an arguable case has been made and issued notice to Emerging Media Ventures, the owner of Royals Sports Group.
Earlier, businessman Raj Kundra had claimed that the franchise cannot shift control till his 11.7% stake is cleared out. The former owner of Rajasthan Royals had written to the Board of Control for Cricket in India (BCCI), urging them to disapprove the transaction. Citing a dispute connected to his 11.7% in the IPL franchise, Kundra had claimed that the ownership structure stays under a legal challenge, and hence any shift of control should not be given clearance at this stage. The proposed structure expects to transition full ownership from Manoj Badale-led Emerging Media to the new investors after the upcoming IPL season, 2026.