Sun TV has bought the Deccan Charges franchise for Rs 85.05 crore a year, by out bidding PVP Ventures which placed it's bid at Rs 69.03 crore. Sun TV's price represents a 100 per cent premium over what was paid by Deccan Chronicle.
Being a shareholder I didn't liked this decision for couple of reasons. The number one being it's not an asset but a recurring cost which wipes out more than 10% of what the company could deliver in terms of profit for fiscal year 2013. Above that there is the recurring cost of acquiring players and coaches and maintenance of the team which could take away another 25 crores per annum.
