Windfall for Lanka Premier League

IPG Global Founder and Chairman Anil Mohan

• Receives multi-million dollar strategic funding from NASDAQ-listed Flash Sports and Media 

By Sa’adi Thawfeeq

The Lanka Premier League (LPL) received a major financial boost ahead of the sixth edition with its promoter the Innovative Production Group FZ, LLC (IPG) getting a multi-million dollar funding support from USA based listed entity - Flash Sports and Media Inc. (Flash).

This new move enables IPG to bring its portfolio of T20 league commercial rights that includes the Lanka Premier League (LPL) to the NASDAQ-listed platform UGRO (NASDAQ: UGRO).     

NASDAQ is one of the largest stock exchange markets in the US.

The change marks a significant moment for IPG and the leagues it manages, positioning them within a publicly governed structure built for scale. Backed by this new institutional structure, IPG will invest $ 20 million to carve out a bigger and better version of LPL over the next two years.

Other than LPL, the IPG Group has long term exclusive agreements to develop Malaysia and Zimbabwe T20 leagues as well. The aim is to evolve standalone tournaments into an integrated, multi-market cricket enterprise spanning South Asia and other emerging territories.

Speaking to Daily FT, IPG Global Founder and Chairman Anil Mohan said: “NASDAQ wants to invest in subcontinent sides. After India the only place to invest is Sri Lanka. Sri Lanka is a full board member and very big value is here. There are ups and downs but this new development will be very good in the next 2-3 years. Big people will come and invest, even IPL owners.”

Mohan said that this new development would create a very big impact on LPL. “Because to be a NASDAQ-listed company a minimum $ 100 million valuation is required, otherwise they don’t come. NASDAQ coming and supporting us, they are giving us up to $ 20 million and then plus, plus is big time. There will be no cash flow issues, we got proper funds and everything will be funded now. I went to the US and met them in New York and they agreed to come with us.”

Venturing further Mohan said that in the past they had problems with player payments, but now they have decided that each franchise investor has to pay the full money upfront.

“The first four years of the LPL we paid everything on time, only the fifth year we had an issue when the owner backed out one week before the tournament, but still we decided to go ahead. We learnt our lessons. For the upcoming LPL all five teams have been sold out. Except for Dambulla the other four teams have new investors.”

“We have decided on upfront full payments by the investors before the player draft, so no risk. Earlier, we trusted people and allowed them to pay later which on certain occasions never happened and IPG had to make the payment to the players. IPG can no longer do it. We have to structure it properly but it will take time. From next year there will be proper owners and proper structuring done.”

Mohan said that local companies will show interest in the LPL franchises if they get the RI (Return on Investment) properly.

“Currently, the rights are for five years so they don’t want to come. They don’t want temporary investment but full time where they are the owners. We need to have perpetual rights, then the team becomes the property of the owners. They don’t want to lease teams, they want ownership so that after 10 or 15 years like the IPL they will get some value.”

Mohan said that because LPL is doing well as an event there is tremendous interest for ownership of the franchises.

“The viewership has gone up by 85% and crowds of 25,000 to 30,000 people are coming to watch the final stages. For any league to be successful you’ve got to have the crowd. That’s the main thing. The first thing is the crowd and players - these two things we have. The bigger players we have to invest in, we will sort out from next year. But still we are getting some big players like Kane Williamson, David Warner.”

Asked in his experience with LPL for the past six years what he sees as the pluses and minuses Mohan said, “Viewership is big time like 72 million, the minus point is the changes happening in the last 5-6 years. For example, this is the fourth Sports Minister.”

Mohan said that he has got the full support and approval from the present Sports Minister and the new SLC Transformation Committee to conduct the sixth edition of LPL which will take place from 10 July to 5 August and for the first time matches will be played at four venues – R Premadasa Stadium, SSC, Dambulla and Pallekele.