‘Not a level playing field’: US group slams Rajasthan Royals sale after missing out to Mittal family

New Delhi: Expressing "deep disappointment" after failing to secure ownership of the Rajasthan Royals, a U.S.-based consortium led by tech entrepreneur Kal Somani on Tuesday refuted claims that they withdrew from the bidding process. The group further alleged that the final sale did not occur on a "level playing field."

The franchise recently announced that industrialist Lakshmi N. Mittal, his son Aditya Mittal, and vaccine magnate Adar Poonawalla acquired a majority stake in the team for approximately $1.65 billion (₹15,600 crore). According to the Royals, the Mittal-led acquisition moved forward after the Somani consortium, which included Walmart heir Rob Walton and Sheila Ford Hamp of the Ford family, exited the negotiations.

In a scathing press release, the Somani group directly challenged that narrative.

"We are deeply disappointed not to be part of the Rajasthan Royals ownership group, following a long six-month process in which we were the lead bid from start to finish," the statement read. "Contrary to stories that have been planted in the press, our group was and has always been fully funded, prepared to close with certainty, and never withdrew our bid."

The consortium claimed they had finalised all legal documentation and were under the impression that a board meeting held this past Saturday was specifically intended to ratify their offer.

"In the end, this was never the case," the group stated. "We approached this process with the highest standards of honesty, integrity, professionalism and in good faith, but unfortunately, that wasn't enough. We do not believe the outcome ultimately reflected a level playing field."

Sources close to the deal indicated that the Somani-led bid of $1.63 billion encountered "multiple issues" during the due diligence phase, failing to satisfy existing owners Manoj Badale and his partners. However, the specific nature of these documentation hurdles was not elaborated upon in the official announcement naming the Mittal family and Poonawalla as the new custodians.

The disgruntled bidders emphasised that such high-stakes transactions require "transparency, consistency, integrity and in good faith."

The New Ownership Structure

Under the approved agreement, the ownership of the Rajasthan Royals will be redistributed as follows:

• The Mittal Family: ~75% stake
• Adar Poonawalla: ~18% stake
• Existing Investors (including Manoj Badale): ~7% stake

The reorganised board of directors will feature Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla, and Manoj Badale.

Despite the setback, the Somani consortium maintained that it remained the premier candidate throughout the process. "...we were the strongest group at every stage, competing against some of the most prominent investors across the sports investing landscape," the group asserted, viewing the experience as a "broader journey" into global sports investment.

With inputs from PTI