Thread by @KShriniwasRao

#Thread on new IPL franchise

Tracking the ruckus about IPL’s new franchise CVC Capital & the noise ofthem having investments in betting companies. CVC Capital is a Private Equity company with offices in over 24 countries. It's an investment Co. Don't make this trivial. (1/13)

CVC operates from multiple countries, which means differently governed nations that have their own laws. For example, online sports betting is legal in the United Kingdom. Betway, which is being majorly advertised in India, is one of the biggest betting companies in UK. (2/13)

So, does that mean any company that has interests in a betting company in UK is not allowed to do business in India? In India, they follow the Indian laws and in UK, the business interests are different, governed by the laws of that country. So, where’s the conflict? (3/13)

Likewise, there are other major business entities in India that are subsidiary firms of parent companies in west. Some VERY BIG names. They have investments in betting companies, investments governed by laws of that country. Should India stop doing business with them? (4/13)

If CVC is set as a precedent, it will be a very dangerous precedent because then a lot of business houses in India, that have their roots in the west, will have to wind up. I can’t put names out here on Twitter but some basic Googling will tell you the story. (5/13)

We should not set trivial precedents and make ourselves the butt of jokes in a global industry. When you expect top dollar from the industry, you’ve got to hand over professionalism in return. CVC met every eligibility criterion of the BCCI before submitting the bid. (6/13)

A senior BCCI official has been a brand ambassador for a fantasy gaming platform. What exactly is that fantasy gaming platform? Can someone please explain? Can you bet money on that platform or not? In fact, this BCCI official did adverts for that platform when IPL was on. (7/13)

I read a tweet from a very senior journalist: “CVC Capital has substantial investment in a betting company. Gambling and betting, incidentally, are banned in Indian law.” So? Advertising alcohol is banned in India. Abroad it's fine. But people drink everywhere, right? (8/13)

Another bad example but bear with me: USA puts a ban on ‘gutka’. Companies operating in India have interests in ‘gutka’ business’. One of these companies decides to sell cigarettes in USA legally. Will they not be allowed because they sell ‘gutka’ in India? Get the gist? (9/13)

Sports betting is legal in America in close to two dozen states. So, if the owner of Manchester United would have won the IPL franchise bid, does that mean back in his country, Avaram Glazer wouldn’t be allowed to invest in a betting company in America? (10/13)

As an investment firm, CVC was associated with F1 for a decade, Moto-GP close to 6-7 years, Rugby leagues. They are in talks with La Liga. At the end of the day, they’re in the sports businesses globally. Their venturing into IPL was seen as shot in the arm. (11/13)

Let’s not create a ‘tamasha’ out of something we either don’t fully understand or comprehend. It will show India in very poor light if we, because of our lack of understanding, drive away an investor based on hearsay & illogical arguments. It’ll set bad precedents too. (12/13)

And here's the most important bit: BCCI did a lot of due-diligence before opening financial bids. They found nothing wrong. CVC ticked all the boxes and are in the clear too. This is now a contract with legal repercussions. Individual whims and fancies don't matter here. (13/13)