Raj Kundra has revealed the personal story behind one of his biggest business decisions, saying his investment in the Indian Premier League franchise Rajasthan Royals was inspired by his wife, actor Shilpa Shetty. Looking back at the purchase years later, the businessman shared that he saw the investment as a special Valentine’s Day gift, combining his financial backing with Shilpa’s public image. During the conversation, he also reflected on the betting controversy that later overshadowed his association with the team and explained how he views the case today.
The entrepreneur spoke about the franchise’s remarkable financial growth over the years, claiming its value has increased dramatically since he first invested. He also discussed the economics of the IPL, explaining how franchise owners generate revenue today compared to the league’s early seasons. While revisiting his journey with Rajasthan Royals, Raj maintained that the legal proceedings connected to the betting case are still pending before the Supreme Court.
Raj Kundra Reveals Why He Invested In Rajasthan Royals
Speaking on the YouTube channel SMTV, Raj said he purchased his stake in Rajasthan Royals in 2009 and described the decision as a romantic gesture for Shilpa Shetty. According to him, he believed the actor’s popularity would strengthen the franchise’s brand while he would contribute financially to the investment. He also pointed out how dramatically the team’s valuation has grown over the years.
Recalling the purchase, Raj said, “I bought it like a Valentine’s Day gift. I thought Shilpa had the brand value and I am putting in the money. I bought my stake then, but the case is still going on.”
Raj claimed that when he entered the franchise, its valuation was around ₹700 crore. According to him, Rajasthan Royals is now worth nearly ₹16,000 crore. At the time of the investment, reports stated that he had spent approximately ₹81.9 crore to acquire his stake in the IPL franchise.
He Reflects On The Betting Controversy
Raj also revisited the controversy that led to his lifetime ban from cricket-related activities. In 2013, he was accused of illegal betting during the Indian Premier League, and following an investigation by the Supreme Court-appointed Justice Lodha Committee, he was banned for life from all cricket-related activities in 2015. The committee’s findings also resulted in Rajasthan Royals being suspended from the IPL for the 2016 and 2017 seasons. Raj has consistently disputed wrongdoing, and he said the matter remains pending before the Supreme Court.
Speaking about the allegations, he said, “We were then accused of betting and betting is not allowed. Then the team was banned for two years. Some players were banned for fixing and as owners, we were banned for betting. What was that betting? It was like you and me sitting with each other. We would be like, ‘Lagi shart? (Want to bet?)’ That was the conversation. ‘Lagi 500 ki shart? (Want to bet for 500?)’. They said even that is not allowed. And we thought, you are banning us for this? The case is still sub judice with the Supreme Court.”
Raj further claimed that he was the only owner associated with Rajasthan Royals who was held responsible in the matter. His comments reflect his version of events, while the legal proceedings connected to the case remain unresolved.
Raj Explains How IPL Teams Earn Money Today
Beyond the controversy, Raj also spoke about the business model behind the IPL and how it has evolved over the years. According to him, owning an IPL franchise was not immediately profitable during the tournament’s initial seasons. He claimed that for the first five to six years, most teams either broke even financially or had to inject additional capital to keep operations running smoothly.
Raj believes the financial landscape has changed significantly since then. He said the majority of a franchise’s income now comes from broadcasting rights, with sponsorship deals and ticket sales contributing additional revenue streams. According to him, around 70 percent of earnings are generated through media rights, while jersey sponsorships and matchday ticket sales account for roughly 10 to 15 percent each. Based on his assessment, every IPL franchise now earns an annual profit in the range of ₹200 crore to ₹500 crore, highlighting how the league has transformed into one of the world’s most valuable sporting properties.
