"Running the team will cost about USD 2 million but the Barbados government is granting subsidies to the franchise," Mallya said.
Vijay Mallya, the troubled businessman, has claimed that he paid only USD 100 to acquire Barbados Tridents, a franchise in the Caribbean Premier League (CPL).
Mallya, who owes his creditors an amount of INR 9000 crore following the shut-down of Kingfisher Airlines, left for London last month. Mallya bought the CPL team just days before he stepped down as chairman of United Spirits, and he subsequently had to relinquish his position in the Royal Challengers Bangalore (RCB) franchise.
Speaking to PTI, Mallya explained how he and other shareholders bagged the ownership of Barbados Tridents for USD 100. "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," he claimed.
However, Mallya also said the cost of running the franchise would be around USD 2 million. "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.
"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," Mallya added.
CPL teams can only generate revenue through ticket sales and sponsorship as there is no system of a central revenue, unlike the IPL.
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