IPL 2021 to be completely managed by Reliance? IMG divests 50% stake in Indian arm

Mumbai IPL team owners Reliance Industries (RIL) have agreed to buy out IMG Worldwide from the sports management joint venture IMG-Reliance (IMG-R) for not more than ₹52.8 crores, as per reports on the company’s regulatory filing. RIL is looking to rebrand itself once the deal is closed down.

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Reliance to buy out IMG’s stake in IMG-Reliance, to rebrand itself after closure of deal

In 2010, RIL had collaborated with international sports marketing and management company IMG Worldwide and formed a 50-50 joint venture to develop, market and manage sports and entertainment in India. IMG, which is a part of the Endeavour network is the most prominent name in sports, fashion, events and media sectors with its operations in more than 30 countries. Currently, IMG Singapore, which is a wholly-owned subsidiary of IMG holds a 50% share in IMG-R. Notably, IMG-R had a turnover of ₹182 crores and a net profit of ₹16 crores in FY2020.

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According to Mint, RIL said that no governmental or regulatory approvals are required for the aforementioned acquisition that is expected to be completed during this calendar year. The company further said that the acquisition does not fall within related party transactions and none of RIL’s promoters or promoter group companies has any interest in the transaction.

It also said that after the completion of the acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded by the company. Reliance shares on Thursday closed 2.58 per cent higher at ₹1,993.90 on the BSE.

IPL winners Mumbai become most digitally engaging franchise

Recently, the Rohit Sharma-led Mumbai IPL franchise established itself as the most engaging IPL franchise on digital platforms (cumulative engagement across Facebook, Instagram and Twitter) for the third consecutive season. The Mumbai franchise, across digital platforms, captured fans’ imaginations through its engagements clocking cumulative interactions of over 317 million across all its three social media platforms i.e. Facebook, Twitter and Instagram, earning the cap of the ‘most engaged’ amongst the competing clubs. According to the numbers made available publicly by CrowdTangle and Unmetric, the Bangalore franchise recorded a second-best at 277.65 million and Chennai at 189.67 million.

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Mumbai's numbers are 60% higher compared to last season’s digital fan engagement performance, clearly indicating their ardent fans' connect with the club through these innovations. Interestingly, a recent study by Spanish firm Deportes & Finanzas revealed that the Mumbai franchise had emerged as the most popular sports team in the world on Facebook for the months of October and November 2020, ahead of global teams like FC Barcelona, Liverpool FC, Manchester United FC and Arsenal FC. 

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SOURCE: PTI