Under fire Indian businessman Vijay Mallya has revealed that it only cost him $US100 to purchase Caribbean Premier League (CPL) franchise Barbados Trident after an agreement with the Barbadian government.
In June of last year the CPL had threatened to pull the loss-making Tridents out of Barbados if more support could not be garnered from the country’s government and private sector. Mallya the former chairman of United Spirits, which owns IPL franchise Royal Challengers Bangalore, purchased the franchise in February of this year. A move that has now come under scrutiny following revelations of steep financial burdens.
“Everyone made a big drama about me acquiring the CPL team Barbados Tridents. It was an acquisition that was not made for any cash. The acquisition was made for just USD 100,” Mallya said recently.
Mallya, who according to reports remains heavily indebted to creditors following the shut-down of Kingfisher Airlines, also revealed that the venture is still expected to be a costly one estimating it to be somewhere in the region of $US2m.
“By buying the team, me and the other shareholders assumed the obligation to participate in the tournament. Now participation in CPL costs money. So I went to the Barbados government saying I need your support. I met the Prime Minister and the government agreed to support but I paid USD 100 only to buy the team,” Mallay said.
“Running the team will cost about USD 2 million but the Barbados government is granting subsidies to the franchise. People don’t get it and jump to conclusions without knowing the facts. There is a cost of participation such as players’ salaries and franchise fee. So I worked out all the numbers, studied the model and went to government asking for help. They were keen to help me,” he added.