Get ready for a new IPL team: Highlights

Sun Group CFO to NDTV:

-Deal fits in well with overall business
-Franchise comes at a very good price
-Bid at 50% of most recent prices
-Deal to To be EPS accretive for co
-Expect very little cash flow
-EBIDTA margins to be attractive from first year
-Expect no cash outflow after 5 years
-Had an option some players who were good enough to be retained
-Looking at option of retaining some good players
-Will take a call on composition of team in the coming days
-Will take a call on the branding soon
-Don't' think we need shareholder nod for the deal
-Total cost of the team within the cap of $11 mn
-Not to pay Deccan Chargers for any player

Hyderabad franchise was initially bought by Deccan Chronicles for Rs 562 Crore in 2008

The SUN TV Network bid was substantially higher than the second bid of PVP Ventures, which was Rs 69.03 crore.

This Franchise fee represents a premium of over a 100 % above the amount paid by DCHL for the Hyderabad Franchise in 2008.

BREAKING: SUN TV Network have won the Hyderabad Franchise for an amount of Rs 85.05 crores per year.

All four bidders have put in bids for the Hyderabad franchisee

The IPL governing council meeting is on right now.

Sources to NDTV:
Sun TV Group (Chennai) has put in a bid of Rs 85 cr for the IPL franchisee. The reserve price for the franchisee set at Rs 60 cr

BCCI'S new guidelines:

- 20 cr performance deposit during submission of bids
- Bidders forfeit that deposit if they fail to provide annual bank guarantee
- BCCI can terminate franchise if they don't pay players or change ownership structure without informing BCCI

Under the new rules, the new franchises will have to submit a Rs. 20 cr performance deposit during submission of bids. The bidders would forfeit that deposit if they fail to provide an annual bank guarantee. The board is doing this to ensure they have the money to pay players & support staff if a franchise fails to do so.

NDTV has also learnt that the Jaypee group has picked up the bidding papers. Jaypee though, would want to use the Green Park stadium in Kanpur till the Noida one is ready.

On the other hand, after the Deccan fiasco, even the BCCI has decided to tighten up its contract clauses.

Welcome to the NDTV coverage of the major announcement of the day.. A new IPL team is about to come our way today as BCCI is set to announce the winning bidders..

PVP ventures and Jaypee Group are the front runners for the team but NDTV sources say that SUN TV and another unknown bidder are also in the running.