The fault in our franchises: An interview with Rangpur Riders CEO

Bangladesh is no stranger to cricket franchises. Ever since 2012 which saw the first season of the Bangladesh Premier League (BPL), there have been more than fifteen different franchises to have participated in the T20 tournament. This is quite a contrast to other T20 leagues around the world which have seen consistent participation from the same franchises.

Over 12 years have passed since that first season, and yet, when you look at the financial growth and valuation of these Bangladeshi cricket franchises, the numbers are quite modest. Especially when you place them side by side with some of our neighbouring franchises, some of which came into the scene even after Bangladesh's own teams had made their debut.

Today Mumbai Indians, the five-time Indian Premier League (IPL) winners and arguably the most successful cricket franchise in the world, have a net worth of 1.3 Billion USD.  Bangladeshi franchises may never even reach half of that net worth. However, before getting into the nitty-gritty of the fault in our franchises, let's start with one positive.

Riding global
One way of growing and increasing the valuation of a club or franchise is expanding globally. In layman's terms, this could mean investing in other leagues and tournaments. Indiawin Sports Private Limited, a subsidiary of Reliance Industries which owns Mumbai Indians, own and have invested in five different teams across different competitions all over the world. It could be simply said that the Mumbai Indians franchise owns five different teams in total.

In a bold move, the BPL Rangpur Riders became the first, and so far the only, franchise from Bangladesh to chase the dream of going global. Just last year, they ventured beyond their home turf to invest in a team in the US Minor Cricket League, known as the Atlanta Fire. This venture gave birth to a new team, the Atlanta Riders, who made their debut in the 'US Masters T-10' cricket league in 2023. This league is known as the second most prestigious cricket league in the United States, right after their 'Major League Cricket.'

"Rangpur Riders have been planning to go global for the last three years. We initially thought of going to Sri Lanka's  LPL because that would've been most feasible for us logistically but we also wanted to invest in American cricket," said Ishtiaque Sadeque, the CEO of Rangpur Riders.

Ishtiaque explains that the Rangpur Riders were drawn to the US Masters T-10 league mainly because of its brilliant business model. Trying to get a team in Major League Cricket felt like a far-off dream for them. The competition was fierce, with a long line of bidders, and they stood little chance against the many Indian companies and franchises eager to secure a spot in America's top cricket league. This reality nudged the Rangpur Riders towards finding their place in the Masters T-10 league instead.

"The team didn't perform too well on the pitch, but the valuation the franchise gained in only one season was very, very impressive," said Ishtiaque.

This is where our conversation took a turn towards the stark reality of BPL franchises. Despite Rangpur Riders being a regular participant in the BPL for almost ten years, their journey in terms of increasing their value and net worth has been disappointingly slow.

"We acknowledge that whichever overseas league we invest in, we will initially lose money but we also know that we will start making money after a couple of seasons," Ishtiaque started explaining.

He sought examples of IPL teams and even the Bangla Tigers franchise from the Abu Dhabi T10 league.

"IPL teams bled money for the first 8-9 years and look at them now. They are soaring and most of them are valued at millions of Dollars. Whereas our governing councils don't even have an official report per se as to how much our teams are valued at," he added.

Ishtiaque further highlighted how 'Bangla Tigers,' another 'Bangladeshi' franchise in the Abu Dhabi T10 league, have benefited from participating in an international business model. Initially investing approximately $2,00,000, the franchise broke even in their third season and began making a profit by the fourth. Now, the team's value has escalated to around $4 million—an achievement unattainable for Rangpur Riders or other local franchises.

"Watching your brand grow like this is a very satisfactory feeling. Unfortunately, we don't have such growth," he said.

Moreover, the lack of growth in local franchises diminishes the appeal to foreign investors, and regrettably, those who do show interest are often barred from investing due to unspecified restrictions by the regulatory authorities in Bangladesh.

"Ultimately, I'm seeking brand value, which we lack a framework for here. This isn't an issue overseas, which is also why we decided to go global."

Revenue Reluctance
Franchisees sometimes play close to or even more than a million Dollars to secure a team in tournaments. Whereas almost every other cricket board and tournament governing councils practice sharing revenues with the franchises, the ones in Bangladesh hardly ever do that. This is something that directly hampers the growth of the franchises.

"We participated in only one season at the US Masters T-10 but we have received revenue shares from the tournament's broadcasting rights, sponsorship rights and so on. They have a functional model and they treat us like partners. Unfortunately, things are different here in Bangladesh," said Ishtiaque.

Globally, sports leagues have established methods for distributing prize money and sharing revenue, which significantly contribute to the financial and brand growth of clubs and franchises. These revenues are derived from TV rights, stadium rights, and ticket sales, with the more popular franchises often receiving a larger share due to their ability to attract more spectators and higher broadcast ratings. 

However, in the Bangladesh Premier League (BPL), franchises receive little to no revenue share from the governing bodies. Additionally, any requests by franchises for a larger revenue share are typically met with counter-negotiations by decision-makers, who paradoxically demand higher franchise participation fees.

"If they [governing bodies] began to share even a small fraction of the revenues, we as franchise owners would feel a sense of relief. It would make us feel like partners, part of a bigger family. That would have given us something to look forward to," said Ishtiaque.

On the flip side, while teams in the Pakistan Super League (PSL) do pay significantly higher franchise fees, they also benefit from considerable returns. The PSL and its franchises have seen nothing short of exponential growth in the past couple of seasons. Conversely, Ishtiaque believes that his franchise, along with others, has regressed both in terms of growth and financial stability over the years.

Future of the franchises
Despite the grim outlook with hardly any signs of improvement, the future seems bleak for our franchises, promising more of the same disappointing trends. This prospect does not excite Ishtiaque, and likely, he is not alone in his sentiments.

"I'm concerned about more than just finances or revenue. If the BPL takes a break for a season or we skip a season, our franchise's future is in jeopardy. Its valuation will plummet and I won't even be able to move the franchise on to potential investors," he said.

He also acknowledged a strong possibility of this scenario occurring. If nothing changes, there might come a time when Rangpur Riders, or any other franchise for that matter, might opt out of participating in the BPL.

Ultimately, the question remains—who's actually winning from all this?

"A few individuals within the cricket board," Ishtiaque asserted. "Their actions are pushing the entire cricket scene in the country towards disaster. That's all I'll say," he concluded.